Impact Of Leadership Behavior On Organizational Performance: A Case Study Of The Department Of Telecommunication And Postal Services In Pretoria

Research Background

Discuss about the Job Satisfaction And Organisational Performance.

Leadership and management are the integral business concepts that help an organisation to accomplish the business goals. Leadership is conceptualized as the establishment of the appropriate visions and interact the vision to accomplish the business goals. The effective leadership helps in resolving the emerging conflicts and coordinating the economic resources to develop the productive business functions. According to Bell, Dyck, and Neubert (2017), the efficient leadership style creates the significant impact on the organisational performance and ensures the productive outcome most specifically.

The study evaluates the impact of the effective leadership attributes on the organisational performance of The Department of the Telecommunication and Postal Services in Pretoria, Gauteng. The chapter would shed lights on the problem statement based on which the entire research would be conducted. The identification of the research, aims, objectives, questions, and hypothesis would generate the idea of the underlying concept of the study. Considering the situation, the further literature study would explore the conceptual and theoretical explanations to measure the impact of the leadership attributes on organisational performance parameter.

The accomplishment of the organisational objectives and goals depends on the strategic and fruitful direction of the associated managers and leaders. In other words, it can be interpreted that the organisational performance is generally depending on the appropriate behaviour of the managers and employees. According to Bolden (2016), leadership is an evolutionary process that creates the greater vision to guide the employees towards accomplishing the personal and professional goals. The efficient leadership trait does not only concentrate on achieving the organizational goals. It also identifies the opportunistic values to adopt the innovative methods and strengthen the competitive position in a volatile business market. In addition to this, the guidance of the efficient leader can lead the employees towards the right direction and create value based approaches for their personal and professional success.

The study is widely concentrating on the case scenario of The Department of the Telecommunication and Postal Services in Pretoria, Gauteng. The Department of the Telecommunication and Postal Services is built to offer the better living style to the society and enable the world-class communication and information technologies to create the sustainable approach. The goal of this department is to maximize the investment in the ICT tools (Information and Communication Technologies). It is noticed that the investment of this ICT technology would help in ensuring the growth in the socio-economic factors. The ICT technologies are expected to become accessible, affordable, reliable, secure, and robust to fulfill the basic needs and requirements of the society and country (Eva et al. 2018). It will be helpful for the South Africans to facilitate the inclusive information society by developing the partnership business with the civil society and improvement of the departmental performance. The appropriate guidance and direction from the skilled leaders would help the organisation to achieve the purpose.

Research Rationale

After the establishment in 2014, the National Department of Telecommunication and Postal Service confirmed the transfer of administration, power, and functions under presidential proclaims in Gazette No. 37839 and Gazette No. 38280. This confirmation is entrusted by the appropriate legislative factors to Ministry of Telecommunications and Postal Services. Such entrustment of the legal aspects has brought the significant changes in the administrative department. It is noticeable that the business procedures and techniques are also influenced with the development of the new technologies and innovative methods (Haider et al. 2018). The management level requires developing such high communication frequency to accomplish the business goals in a significant manner. Therefore, it became quite difficult for the company to develop the strategic visions in a significant manner if there is the lack of appropriate leadership guidance (Wolgemuth et al. 2015). Especially, in responding to the change, there was the significant need of changing the appropriate strategic visions.

These significant changes in the administration ensured the significant on the strategic implementation as well as the organisational structure. During such circumstances, it became quite difficult to concentrate on the leadership values and manage the uncertainties occurring within the organisation. It is important for the organisation to respond to the repeated changes in the business environment (Zhu et al. 2015). In fact, it is noticeable that the changing demands of the clients are creating the considerable impacts in the competitive business market.

In order to make the progress in the organisational performance level, it becomes essential for the company to develop the leadership attributes in a significant way. The establishment of the effective leadership behaviour would be beneficial in motivating the associated employees that can motivate the employees towards developing their performance parameter to ensure success (Singh 2015).

The research would thus explore the theoretical analysis of the leadership attributes that create the significant impact on the organisational performance. The exploration of the conceptual analysis of the organisational performance level would determine whether the institute can resolve the issues with their leadership development procedures or not.

The aim of the research is to analyze the influence of the leadership behaviour on improving the organizational performance in the Department of Telecommunication and Postal Services in Pretoria. The study also attempts to identify the conceptual and theoretical analysis of the leadership attribute to identify the fruitfulness in managing the volatile business scenario by improving performance.

• To determine the impact of leadership on organisational performance
• To identify employee perceptions of the existing leadership style
• To study the conceptualisation and different measures of organisational performance
• To make recommendations to Department of Telecommunications and Postal Services over their leadership styles for improving organisational performance

• How leadership impact on the organisational performance level?
• What are the perceptions of the employees regarding the existing leadership styles?
• What are the most effective measurements for determining the organisational performance?
• How Department of Telecommunications and Postal Services can develop their leadership styles to improve organisational performance level?

H₁: Transformational leadership style tends to impact positively on organisational performance

Research Aim

H₀: Transformational leadership style tends to impact negatively on organisational performance

H₂: Transactional leadership style is likely to impact positively on organisational performance

H₀: Transactional leadership style is likely to impact negatively on organisational performance

H₃: Transformational leadership style tends to have a positive relationship with organisational performance

H₀: Transformational leadership style tends to have a negative relationship with organisational performance

H₄: Transactional leadership style is likely to have a positive relationship with organisational performance

H₀: Transactional leadership style is likely to have a negative relationship with organisational performance

The identification of the research rationale will be exploring the conceptual and theoretical analysis of the leadership attributes that create the significant impact on the organisational performance. The findings from the secondary sources will generate the ideas about the effectiveness of the leadership attributes that enhances the organisational performance level. The research will also develop the high standardized ideas regarding the subject area based on which the entire study will be conducted.

The chapter identifies the problems faced by the Department of Telecommunications and Postal Services. The organisation has been facing trouble due to the ineffective leadership behaviour. It became quite difficult to concentrate on the leadership values and manage the uncertainties occurring within the organisation due to the rapid changes in the business market. The development of the research aims, objectives, and questions will help in conducting the further research study. Based on the strategic outline of the study, the literature will develop the considerable ideas regarding the leadership attributes to ensure the better organisational performance level.

The study is based on identifying the impact of the effective leadership style to develop the high standardized organisation performance. It is noticeable that the leadership is the integral part of ever organisation to lead the organisational functionalities in a productive way. The skilled leadership attributes help in motivating the employees to enhance their performance level and accomplish the business goals in a significant manner. Tourish (2014) implied that the effective leadership helps an organisation to deal with the emerging uncertainties and create the value based scenario to accomplish the business goals. Literature study explores the conceptual and theoretical analysis, which creates the implications regarding the subjective focus of the study. The obtained idea from this literature study would be connected to the findings from the secondary analysis process with the application of appropriate methodologies.

Leadership generally represents the involvement of the individuals with the balanced and varied interests among the employees, managers, and other business stakeholders. Many scholars have defined the leadership concept in diverse ways. According to Newman et al (2017), leadership is a mere complex process, which helps an individual to become influenced and achieve the personal and professional goals. A skilled leader carries out such leadership traits by developing effective leadership attributes, which include character, belief, ethics, skills, and knowledge. On the other hand, Rao (2014) defined that an efficient leader needs to maintain the high level of integrity to motivate the followers. It becomes difficult for the followers to perform more effectively if they lack trust on their leaders. Therefore, it can be implied that the leadership attributes have the greater influence on the performance level of the employees. LePine et al. (2016) suggested that while working within an organisation, people perceive their job role in a diverse way. Therefore, each of the followers seeks the diverse leadership style that can instigate them in a positive way to accomplish the success. Maynard et al. (2017) explained that the current business market is much volatile where the customers’ needs are continuously changing. Moreover, the business procedures and techniques are also influenced with the development of the new technologies and innovative methods. The lack of proper guidance may prevent the productive outcome of entire organisational performance. A skilled leader has the capability to develop the better performance attributes by directing them towards the right direction (McLachlan and Garcia 2015). However, it is essential to select the right leadership approach that enhances the productivity of the associated employees. Therefore, the theoretical analysis provides the insights regarding the diverse types of leadership styles that have the significant influence on the performance level of the employees.

Research Objectives

The volatile working environments demand for the innovative attributes to perform the diverse business functionalities. Hence, the diverse types of leadership styles exist within the working environments. According to Hoyle and Gottfredson (2015), the goals and culture of an organisation signifies the right leadership approach that fits into the organisational functions. However, it is noticeable that the differences in personality often dictate the use of the appropriate leadership trait. It is noticeable that the many of the companies adopt the several leadership styles within the organisations that depend on diverse departmental needs. The leadership styles can be categorized into five different typologies, such as laissez faire, autocratic, democratic, transformational, and transactional. Jacobsen and Bøgh Andersen (2015) defined that laissez-faire leaders do not directly supervise the employees and do not provide the regular feedback. It is noticed that the highly experienced and fully trained employees are able to work under such leadership style in which they do not need the supports of their supervisors. The most disadvantageous side of this leadership style is it hinders the productive outcome of the employees’ performance. It also leads towards lack of control and can increase the organisational costs. Kesting et al. (2015) defined that Autocratic leaders are the ones who make their own decisions and do not require the indulgence of other employees while undertaking any organisational decision making process. The decisions made by the autocratic leaders cannot be challenged by any of the members existing within the organisation.

On the contrary, Herman and Chiu (2014) described that the democratic leaders consult with the employees while undertaking any relevant decision making process for the organisation. The participative leadership values the contribution of the employees to accomplish the business goals. D’Innocenzo, Mathieu and Kukenberger (2016) identified that this participative leadership style is much fruitful to generate the sense of reliability among the employees. Especially when the employees feel that their contributions are valued by the company; they receive the motivation to perform in a better way.  According to Eisenbeiss, Van Knippenberg and Fahrbach, (2015), the transformational leadership style is fully relied on the high level of communicational transparency. The management level requires developing such high communication frequency to accomplish the business goals in a significant manner. The transformational leaders usually focus on achieving the objectives beyond the predetermined standards. It was also mentioned that the transformational leadership style inspires the workforce with facilities and confidence in a positive manner. The management level requires developing such high communication frequency to accomplish the business goals in a significant manner. In this leadership style, the leaders often motivate the employees to enhance their personal and professional goals to make the progressive attitudes towards their career goals (Engelen et al. 2015). The final leadership style is Transactional Leadership style, which signifies the approach of the leaders to provide rewards or punishments based on their performance outcomes. Heeringa, West, and Berglund (2017) mentioned that the managers who are following this type of leadership styles review and monitor the performance parameter of the associated employees. Based on this review report, the managers decide whether the employee deserves the punishment or rewards. These specific leadership attributes determine the performance level of an organisation. In this literature study, the analysis of the transformational and transactional leadership will be discussed in an elaborative way.

Research Question

According to Wang et al. (2014), the transformational leadership style is adopted by the leaders who maintain the high level of integrity and motivate the employees to make progress towards their performance and professional goals. This leadership style encourages the employees to develop teamwork and set the support innovations for performing efficiently in this ever changing business market. Heeringa, West, and Berglund (2017) defined that the transformational leadership style includes the conceptual form of the mutually beneficial goals, emotional connections, motivations, common values, strategic visions. The transformational leaders often create the suggestive strategic direction by using symbols, visions, and models and acts consistently.

The transformational leadership is a kind of leadership approach, which is backed by the interactions that are undertaken by the management of the organization with the employees to bring in positive changes in the systems of the business operations. The key elements of the change in the organization are dependent on the collaboration and the interaction of the leaders with the employees. It helps the leader to identify the issues faced by the employees and thereby mitigate the same to bring in improvements in the performance. Maynard et al. (2017) stated that the identification of the issues faced by the employees by the transformational leader helps to integrate the actions and thereby bring forth innovations. The different perplexities faced by the other forms of leadership might affect the performance of the business. However, the action of the transformational leader helps in maintaining the different standards of the functions that are undertaken by the employees through interaction and motivation. Heeringa, West, and Berglund (2017) stated that the transformational leader identifies him equal to the employees which help the leadership form to undertake collaborative bonding with the employees which enhances the performance of the business.

The transformational leaders are quite committed towards accomplishing the organisational goals and motivate the employees accordingly. Maynard et al. (2017) identified that the transformational leadership signifies the positive effects on the performance parameter of the individuals. They generally review and monitor the performance progress of the employees and rectify the mistakes for the betterment of their productive performance outcomes. It is informed that the transformational leadership is made up of four major characterizations, such as charismatic, inspiration, individual considerations, and intellectual stimulations. The charismatic leadership attributes include the respect, trust, and confidence of the followers. This attribute is quite necessary for the transformational process. Eisenbeiss, Van Knippenberg and Fahrbach, (2015) defined that the individualized considerations which determines that the leaders would properly guide, monitor and provide coaching to the followers. The intellectual stimulation leaders inspire the workforce by interacting the values and visions and provide them opportunity to achieve success. The inspirational leaders, on the other hand, inspire the workforce with facilities and confidence in a positive manner. Therefore, it is noticeable that the adoption of the transformational leadership style is much helpful in enhancing the organisational performance in a positive way.

Hypothesis

Transactional leadership is an approach of leadership, which focuses on supervision, organization, and performance of the workforce as per the objectives of the business in the market. The approach of leadership focuses more on rewards and punishments to conduct the management of the workforce (Eisenbeiss, Van Knippenberg and Fahrbach, 2015). It is a section of the authoritative and dominative leadership where the leader dominates over the functioning of the workforce through the application of different norms and regulations that governs and measures the performance of the employees as they perform their job roles. Kesting et al. (2015) stated that transactional leadership helps in maintaining the balance of the leadership and thereby bring in changes in the systems and the performance of the business through the application of regulations that governs and judges the functions that are undertaken by the employees. On the other hand, Wang et al. (2014) stated that the application of the transactional leadership affects the morale of the employees through the exposition of the different regulations. The identification of the needs of the employees helps in the efficient management of the workforce, which is not anticipated by the transactional leadership. Maynard et al. (2017) stated that the application of the transactional leadership approach might ring in changes in the productivity.

It is noticeable that when the chain of command is clear and definite, the workers tend to perform in a better way. Wolgemuth et al. (2015) implied that the punishments and rewards motivate the workers to improve their performance level. The subordinates need appropriate monitoring from the supervisors to develop the better performance level. The managers who are following this type of leadership styles review and monitor the performance parameter of the associated employees. The rewards and punishments in the transactional leadership style are contingent upon the performance parameter of the followers (Eisenbeiss, Van Knippenberg and Fahrbach, 2015). Therefore, it is essential for a transactional leader to monitor the performance much clearly and closely to develop the high standardized performance attributes.

The organisational performance is conceptualized by comparing the organisational goals and objectives with the actual performance of the three distinct areas, such as market performance, financial performance, and shareholder value. According to Carlos Pinho, Paula Rodrigues and Dibb (2014), financial performance refers to the result based on the return on assets and return on investments. On the other hand, the market performance is conceptualized as the ability of the company to produce and distribute the outputs in a cost effective way. It helps in setting up the price that returns a considerable amount to the suppliers. On other words, Lee (2017) explained that market performance even depends on the ability of the company in terms of meeting the expectations of the consumers by offering the effective products and services. It has been observed that some of the organisations adopt the strategies to measure the market performance to analyse the business potentiality to compete in a market.  The next is shareholder values, which refer to the value of the person who is sharing the possessions of the firm. The measurement of these three combined factor determines whether the organisation is capable of meeting the determined objectives or not.

Research Significance

Performance management is a multidisciplinary research that is informed by a varied group of corresponding theories and complementary disciplines. Shields et al. (2015) observed that organisational performance at the strategic level creates the micro view that outlines the systematic approach for developing the effective organisational management. There are some of the basic theories applied to the organisational performance management of an organisation. Some of these theories are organisational theory, system theory, goal-setting theory, and contingency theory. The theoretical analysis of the organisational performance is described further:

• Organisational Theory

According to Bakoti? (2016), organisational theory develops the understanding of the organisational studies by confirming the method of adapting the changes. On the other hand, Shields et al. (2015) also described that the organisational theory explains the structure and the strategies undertaken by the organisation to fulfill the determined objectives and respond to the external market demands. It is noticeable that organisational theory is required being rational, efficiency oriented, information based, and concerned with the determinants associated with the control strategy. It distinguishes between behaviour based performance and outcome based evaluation. Berson et al. (2015) explained that the development of the organisational theory compares the ability of measuring the outcome and organisational behaviour. Lazaroiu (2015) presented a contradictory view for interpreting the concept of organisational theory. It was suggested that this type of theory is mainly developed to gain the control over the measurement and the evaluation process. In such cases, the reward is accepted as the implicit value. It is also implied that the effective organisational performance has the ability to reduce the divergent preferences through the social control. However, it is required to use the information as one of the most essential purchasable commodities. The leaders often require gaining the control over these segments to identify and measure the performance parameter of the organisation, especially in terms of meeting the projected objectives.

• Contingency theory

The contingency theory of organisational performance has the significant essence in the paradigm that ensures the suitable characteristics of the organisational structure. Furthermore, Wadongo and Abdel-Kader (2014) described that these characteristics of the organisational structure depend on some of the contingencies, such as organisational strategy, environment, and size of the organisation. The overall theoretical analysis represents the significance of task characteristics, especially in terms of developing task programmability. It helps in making choices of controlling the strategy. Maleti?, Maleti? and Gomiš?ek (2016) implied that the social control or the existence of the people creates an alternative to control through the performance assessment. Many of the theorists, in today’s date, believe that there is no specific way to organize the performance of the company. It is important to analyze what is fit between size, structure, and the technology of the organisation in respond to the demands. The overall perspective is conceptualized as the contingency theory. Chang (2015) opined that the contingency theory contends that the leadership style needs to be contingent upon diverse external and internal constraints.

• System Theory

According to Van De Voorde and Beijer (2015), a subset of the diverse organisational theory is perceived as system theory that includes a series of variations. Such of these variations are General Systems Theory of Von Bertalanffy, Dialectical System Theory of Mulej, Viable System Theory of Beer, and Critical System Theory of Flood and Jackson. Maleti?, Maleti? and Gomiš?ek (2016) argued that system theory generally promotes the holism and opposes the reductionism. It implies that instead of reducing an entity, system theory generally focuses on arranging the organisational parts and connects them into a whole. It generally emphasizes interconnectedness, interdependence, and openness to oppose the independence, closeness, and isolation. The development of these aspects ensures the emergence of the discovery of new formula of interacting entities obtained from the analysis. It becomes evident that the organisational parts required the in-depth analysis to determine the performance level. Shields et al. (2015) opined that system theory often acknowledges the complexity as a considerable trait of the reality that focuses on the synergy as well as the combination synthesis and analysis. It also considers the organisation as systems with the considerable boundaries that are making exchanges with the environment. It ensures that the organisation must be adaptive towards the environmental changes to survive for long. It requires creating the open system that can directly interact with the environment through necessary inputs and outputs. The leaders play a  voatl role in developing the system theory within the organisation.

• Goal Setting theory

Goal setting theory of organisational performance is considered as the most effective motivational theory, which was formulated by based on empirical research conducted over the years. Wadongo and Abdel-Kader (2014) explained that the root of the goal setting theory on the premises that are affected by the actions. Shields et al. (2015) argued that when the goal setting theory is formulated by concentrating on the individual level, the principles are considered as much relevant at the organisational level as well. Maleti?, Maleti? and Gomiš?ek (2016) presented the counterargument on this aspect. It was argued that the goal-setting can become much effective when the individual performer has the significant control over the performance attribute. The alignment between the group goals and the individual goals thus become much preferable for maximizing the organisational performance.

The exploration of the theoretical concept determines that the leaders can help in applying these theoretical practices for enhancing the performance level of the organisation. Especially, in case of goal-setting theory, the leaders play the most significant part in motivating the individuals to stay focused on their performance parameter. It helps in achieving the overall objective of the organisation in a significant manner. It was suggested that this type of theory is mainly developed to gain the control over the measurement and the evaluation process. The continuous monitoring and reviewing the performance level of the employees thus create the significant and opportunistic scenario to enhance the performance level (Wadongo and Abdel-Kader 2014). Accordingly, it will create the sense of reliability among the workforce that automatically motivates them to work in better way. Hence, it can be inferred that the leaders need to take the hands-on approach to strengthen the organizational vision to cater the best performance attribute and achieve the professional and personal objectives.  

The different leadership approaches helps in the identification of varied levels of performance factors of the organizations. The different levels of change that is planned by the businesses are pertinent through the varied leadership styles. Motivation of the workforce and smooth performance of the same helps in promoting the organizational performance. The primary responsibility of the leaders is to identify the considerable challenges faced by the associated employees. With the help of the motivational process, the leaders will be able to guide the employees to manage their job responsibility in a significant manner (Eisenbeiss, Van Knippenberg and Fahrbach, 2015). The two leadership approaches that will be considered as a part of the discussion will be helping in the clear identification of the different aspects of the change that is planned by the organizations and the manner in which the approaches helps in bringing forth improvements in the organizations.  Each of the followers seeks the diverse leadership style that can instigate them in a positive way to accomplish the success. Wang et al. (2014) explained that the organisations need to respond much significantly to the changing demands of the changing needs of the customers. In fact, it is also necessary to pay attention towards the innovative techniques and procedures to develop the unique approach and attract more customers towards the service offering. This purpose can e fulfilled by ensuring the high standardized performance level of the associated employees.  The leaders thus need to develop the communicational transparency for accomplishing the business gals and motivate the employees to adopt the advanced skills to achieve the personal and professional goals.

The selection of the appropriate leadership style is necessary to maintain the high integrity level. The employees need to have faith on their leaders to improve their performance and ensure their job security. If the leaders fail to establish the trust among them, it will affect the overall performance parameter of the organisation (Kesting et al. 2015). The transformational leadership style determines the positive work outcome as it helps in influencing the workforce to develop their knowledge regarding the organisational functionalities. Moreover, the transformational leaders provide the opportunities to the employees to enhance their technical skills that lead them towards achieving the career goals. The continuous supports from the leaders thus generate the sense of motivation, which automatically sets the high performance standards of the employees to achieve success and excellence that turn out to be much profitable (Eisenbeiss, Van Knippenberg and Fahrbach, 2015). The collaborative approach and cohesiveness maintained in the teamwork will guide towards better performance attributes and signify the better performance outcome. Hence, it can be interpreted that the appropriate leadership style will help in enhancing the organisational performance level.

The literature study explores the fruitfulness of using the right leadership attributes for shaping up the organisational performance. One of the major gaps identified in the literature study is the lack of wider area of research. The study explores the idea of the transformational and transactional leadership style instead of identifying the fruitfulness of other leadership attributes. Moreover, it was identified that different organisations seek the diverse leadership style that fits into the organisational performance. The focus on two specific leadership attributes might be limited in terms of developing the organisational performance of the mentioned institute. Hence, in such cases, the literature is quite limited.

The literature study focuses on the subjective attributes of the leaders in terms of shaping up the organisational performance parameter. The organisational performance is generally depending on the appropriate behaviour of the managers and employees. Literature study explores the conceptual and theoretical analysis, which creates the implications regarding the subjective focus of the study. It is noticeable that the differences in personality often dictate the use of the appropriate leadership trait. It is noticeable that the many of the companies adopt the several leadership styles within the organisations that depend on diverse departmental needs. The findings received from this literature review study would be linked to the future secondary research and develop the complete understanding of the subject area in a specific way.

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