Dr . ChongDBA program

Faculty of managementMultimedia university , cyberjaya

Relationship between leadership style and knowledge management

Roozbeh Hojabri 1082200038

Introduction

• Knowledge is the most important factors for competitive advantage that identified .

• Effective managing knowledge is only way to reach ,competitive advantage

• Despite this interest, there is little empirical research to support the relationship between leadership style factors and knowledge management attributes.

• the dynamic nature of knowledge capture, dissemination, reward, and creation, leadership does not provide active means (supportive environment) that will advance knowledge acquisition.

Introduction

• Strategic alliances require a unique style of leadership. Leaders set the benchmarks for organizational performance. Leaders creating strategic alliances must have a vision of the benefits to be gained in cooperative ventures and help their organizations overcome inhibitions about risk taking and resource sharing(Hefner ,1994)

Research problem / objectives / issues

• Main Research question:– Is there any relationship between the leadership style and knowledge

management • Sub research questions :

– Is any effect of leadership style on organizational learning– Is there any relationship between Leadership style in Creating,

Sharing and Exploiting Organizational Knowledge– Is any Relationship between Leadership Behaviors and Knowledge

Sharing– Is any Relationship Between Leadership Capability and Knowledge

Management

Findings

Literature review

• Leadership styles• Knowledge management• Organizational learning

Leadership styles• Leadership refers to people’s ability, using minimum coercion, to

influence and motivate others to perform at a high level of commitment (Bass, 1985, 1999).

• Burns (1978) and Bass (1985) developed the transformational leadership theory, based on the recognition that people are motivated by instrumental motivation, but also by such factors as the need for self-realization and belonging. The theory describes two leadership patterns:

Transformational leadership transactional leadership

(1) Intellectual stimulation, referring to leaders’ actions, challenging their followers’ thinking to be more creative and to find solutions to difficult problems, with the leader acting as a mental stimulator.

(2) Individualized consideration, namely leaders’ behavior that contributes to their followers’ satisfaction by giving advice, support, and attention to each individual’s needs.

(3) Inspirational motivation, referring to leaders’ motivating their followers by viewing the future with optimism, projecting an idealized and achievable vision, and stressing ambitious goals.

(4) Idealized influence (attributed charisma), which refers to leaders’ charismatic actions centered on values, beliefs, and a sense of mission.

(5) Idealized influence (behavioral charisma), which likewise refers to leaders’ charismatic actions anchored in values, beliefs, and a sense of mission (Antonakis et al., 2003).

The transformational leadership style

Transactional leadership(1) Contingent reward leadership, which refers to leaders’ behaviors focused

on clarifying role and task requirements and providing followers with material or psychological rewards.

(2) Management-by-exception (active), referring to the active vigilance of a leader whose goal is to ensure that standards are met.

(3) Management-by-exception (passive), where leaders intervene only after noncompliance or mistakes by followers (Bass and Avolio, 1994; Antonakis et al., 2003).

Newer Leadership Style - Self-Management Leadership

Dimensions• The first category is derived from Manz and Sims’ (1986, 1987) theory and

research on self-leadership in self-managing work teams. The purpose of Manz and Sims’ (1987) research work was to find the independent dimensions of leader behaviour that are appropriate for the success of self-managing teams.

• Encourage self-observation so that the members of a team can gather the information and the knowledge required in monitoring their performance.

• Encourage self-goal setting so that the members of a team set performance goals. • Encourage self-reinforcement so that the members of a team recognise and reinforce

their performance. • Encourage self-criticism so that the members of a team are self-critical and discourage

poor performance. • Encourage self-expectation so that the members of a team have high expectations for

performance. • Encourage rehearsal so that the members of the team practice a task before

performing it

Drucker (1969) “Knowledge is the

central capital”

Knowledge management• Definitions :

– it must point out that knowledge is more than data and/or information. (Ladd and Mark, 2002)

– it must describe the tacit and explicit nature of knowledge. (Ladd and Mark, 2002)

– it must describe personal nature f knowledge (Nonaka and Teakeuchi, 1995).

• Organizational knowledge includes all the tacit and explicit knowledge that individuals possess about products, systems and processes and the explicit knowledge codified in manuals, databases and information systems.

Cont ,• The knowledge-based view of the firm builds on the resource-based view

of the firm, which suggests that firms’ competitive advantages stem primarily from internal resources and capabilities (Barney, 1995; Wemerfelt, 1984; Penrose, 1959).

• One of the challenges of knowledge management is that of involving people together, to share their knowledge, especially the tacit knowledge. Generally, people will not give up their hard-earned tacit knowledge, when it is one of their key sources of personal advantage

Knowledge Creation and Sharing

• Nonaka & Takeuchi (1995) describe how firms create new knowledge through four primary modes that involve the interaction of tacit and explicit knowledge:

• socialization, is the process of sharing one’s experience with another, thereby creating tacit knowledge in the form of mental models and technical skills.

• externalization, converts tacit knowledge into explicit concepts.• internalization, involves turning explicit knowledge into tacit

knowledge.• combination. process creates a new form of knowledge by combining two

sources of explicit knowledge.

KM VS Leadership Style• Sharing Knowledge

– Leaders encourage workers to share their ideas by creating a limate that is receptive to new ideas.

• Creating Knowledge– Leaders provide the context in which workers create knowledge and

can influence the levels of creativity in the organization (Mumford, Whetzel & Reiter-Palmon, 1997; Redmond, Mumford & Teach, 1993).

• Exploiting Knowledge– Organizations that have systems in place to convert creative ideas into

valuable products and services are better able to exploit their knowledge.

Organizational learning• Organizational learning is among the most significant issues for

corporations, both profit and not-for-profit, and for governmental institutions. "Throughout the world managers and other leaders are wrestling with the question of how to integrate experiences and goals among large groups of people working together in order to ensure that things happen in a learning mode" (Kline & Saunders, 1998).

• "Most companies today are under severe pressure to proceed with needed organizational transformation in order to cope with increasing rates of environmental change and turbulence. These new organizations must be responsive, flexible, adaptable, and value adding for all stakeholders" (Dervitsiotis, 1998).

• Some research noted that :– Source of organizational learning should provide from outside of firm.– Other research focus on learning process in organization .

• Should see organizational learning as the process of change in thought and action both individual and shared—embedded in and affected by the institutions of the organization. Crossan et al. (1999)

• Source : Vera and Crossan STRATEGIC LEADERSHIP AND ORGANIZATIONAL LEARNING

Methodology• All of research use quantitative as method• Sampling

• The first research was conducted at 44 community clinics of a health-care organization in Israel.

• Second research data were collected from 1,474 teachers at 104 elementary schools in northern Israel,

• Third research data were collected 227 persons who are, or have been engaged in knowledge acquisition activities

• 4th research include 16 accounting firm branch offices in Taiwan and 135 branch offices in the U. S.

• …..• Major researches use following questionnaire :

(1) The Multi-Factor Leadership Questionnaire (MLQ);(2) An organizational learning questionnaire (Ellis and Globerson, 1996a, b; Ellis et al.,

1999).

Findings

• Results indicate that the leadership styles that involve human interaction and encourage participative decision-making processes are positively related to the skills and traits that are essential for knowledge management. – A transactional leadership style is associated with higher levels of

knowledge exploitation at the organizational level.– A transactional leadership style facilitates increases in knowledge

exploitation in groups.– Higher levels of knowledge creation and sharing at the group level

positively correlate with higher levels of group performance.– There is positive Impact of leadership style on organizational learning– A transformational leadership style facilitates higher levels of

knowledge creation and sharing in groups.

Research Q.

Cont.• A transformational leadership style facilitates higher levels of knowledge

creation and sharing at the individual level.• Transformational leaders have potential to affect their employees’ perceptions of human

capital benefits. They also have the greatest potential to augment these benefits through involving them in the KM process, establishing organizational culture, and encouraging communication among employees.

• The findings attested to the central role of organizational leaders in determining the effectiveness of organizational learning.

• So finding supports relationship between leadership style and KM , organizational learning• Creating, Sharing and Exploiting Organizational Knowledge

• Source : John D. Politis THE RELATIONSHIP OF VARIOUS LEADERSHIP STYLES TO KNOWLEDGE MANAGEMENT

Leadership’s Effect on Knowledge and Performance

• Source : Scott E. Bryant The Role of Transformational and Transactional Leadership in Creating, Sharing and Exploiting Organizational Knowledge

Discussion

• The overall pattern of relationships between independent (leadership style ) and dependent( knowledge management ) variables supported by these research .

• The greatest need in this area is empirical testing of the organizational knowledge constructs.

• Researchers may want to explore the key links in this argument: 1) the link between organizational knowledge and individual, team

and organizational performance; 2) the link between transformational leadership and managing

knowledge at the individual and group levels; 3) the link between transactional leadership and managing

knowledge at the inter-organizational level.

Conclusions • This research study reveals that a significant relationship exists between

leadership style and knowledge management. • It is understood from this study that the leadership style plays a vital role

in knowledge sharing contributes maximum towards the knowledge management and also organizational learning .

• This process has greater impact on employees’ performance since it affects employees’ day-to-day knowledge-related activities. Under knowledge infrastructure capability, organizational culture and communication factors have been considered.

Recommended framework

Leadership style -------------------------Transformational

Leadership--------------------Transactional

Leadership Behaviour-------------------

Self-Management Leadership Behaviour

Knowledge management -------------------------Knowledge sharing------------------------

Knowledge creation-------------------------

knowledge exploiting--------------------------

Behavioural Skills and Traits for Knowledge

Acquisition

Impact

references• Kurland ,H, Peretz ,H , Hertz H-Lazarowitz ,(2010) Leadership style and organizational learning.• Politis ,D (2002) ,THE RELATIONSHIP OF VARIOUS LEADERSHIP STYLES TO KNOWLEDGE MANAGEMENT• Scott E. Bryant , 2003 The Role of Transformational and Transactional Leadership in Creating, Sharing and

Exploiting Organizational Knowledge .• Li Yueh Chen , F. Barry Barnes 2003 Relationship between Leadership Behaviors and Knowledge

Sharing In Professional Service Firms Engaged In Strategic Alliances.• G. Suri Babu , T. Mohana Rao , Salma Ahmed , K. S. Gupta Relationship Between Leadership Capability and

Knowledge Management: A Measurement Approach.• Mayan Amitay, Micha Popper and Raanan Lipshitz ,2005 , Leadership styles and organizational learning in• community clinics• Vera and Crossan ,2004 , STRATEGIC LEADERSHIP AND ORGANIZATIONAL LEARNING• Cecil V. Martinette Jr et al , 2002 , LEARNING ORGANIZATIONS AND LEADERSHIP STYLE

Thank You