OrganizationalLeadership and Job Satisfaction
OrganizationalAssessment of Leadership and the Impact it has on Job Satisfaction ata financial institution.
Leadershipis an important aspect in facilitating growth and performance of abusiness. The role of leadership in contemporary businesses hasundergone changes and since change is inevitable, corporateorganizations have to develop means of implementing the changes inthe leadership roles (Yammarinoet al., 2005,p.879-919). Javed, Jaffari and Rahim (2014, p. 41-50) believe thatall business organizations need to have leaders who possess specialcharacteristics such as being proactive, dynamic and have therequired knowledge to generate fundamental changes within theorganization. Bader, Hashim and Zaharim (2013, p.30-44) argues thatemployees are an important aspect in the organization which promotesefficiency of the business and that leadership has a huge role toplay in the satisfaction of employees.
StandardBank SA acknowledge that every employee across the group plays a hugepart in enabling them to deliver their strategy and achieve theirvision (Dobson, 2015, p.21).
Between2013 and 2015 the group experienced a positive reduction of 2% from13.2% to 11.3% in employee’s turnover across the group in variousdepartments. The company’s level of voluntary turnover – anindicator of employee satisfaction – in 2015 remained healthy at8.3% and below the international financial services benchmark of13.9% (Dobson, 2015, p.53). Although a positive change, there arevarious factors that contributed to the overall outcome. In order tomanage employee turnover the company needs to understand the causes(Sutherland and Jordaan, 2004, p.56).
TheStandard Bank Group is headquartered in Johannesburg and theirprimary listing is on the Johannesburg Stock Exchange (JSE) in SouthAfrica, with a secondary listing in Namibia. Standard Bank is anintegrated financial services institution. They offer services acrossthree business units, namely Personal & Business Banking (PBB),Corporate & Investment Banking (CIB) and Wealth (which includesLiberty Holdings Limited), each offering different financialsolutions (Dobson, 2015, p.10).
Inthe services sector such as banking, effective services renditionlargely depend on the workforce (Fitzgerald et. al, 1994) thereforeemployee satisfaction will affect the services quality rendered. Dueto this, businesses such as banks invest huge sums of money annuallyin the growth of their employees in order to guarantee theirsatisfaction in their jobs and to gain loyalty and commitment.However, Bowes, (2009) state that money is not the driving forcecausing people to leave their employment. So, if high-performingemployees don`t leave an organization for money, why then do theyleave?
Astudy conducted by Ali, (2009) on the relationship between generaljob satisfaction and people leaving their employment at a privateschool in Pakistan, revealed that general job satisfaction was foundto have a negative relationship with turnover intention, suggestingthat the relationship between the variables is strong.
Anotherstudy led by Yin-Fah et al, (2010) on private sector workers inPetaling, Selangor (Malaysia) with the aim to investigate theorganizational commitments, work stress, work satisfaction andturnover intention also uncovered a negative relationship between jobsatisfaction and turnover intention.
Bowes,(2009) state that employers must not count on cash, employees willflee bad leadership, whatever the economic situation.
Accordingto Kirkbride, (2006) the full range leadership model is probably themost researched and validated leadership model in use worldwidetoday. However, Avolio, (1999) suggest that the full range leadership model does not mean that it covers all the dimensions of leadership but it is a model that ranges from passiveleadership to a highly encouraging charismatic role model leader.
During1978 after years of researching politicians, Burns arrived at theconclusion that two leadership styles exist together,transformational and transactional leadership (Lowe et al. 1996,p.385). In addition to the transactional and transformationalleadership, Bass(1985)(cited in Bass and Avolio 1999, pp.441-442) found another type of leadership style inorganizations. Passive leadership, also known as laissez-faireleadership which is likely to a non-leadership situation inorganizations. From those perspectives, Bass and Avolio developed amodel of leadership called the Full-Range Leadership (Gill 2010, pp.50-51).
Transactionalleadership,rewards and disciplines are dependent upon the execution of theadherents (Cherry, 2013). The leader sees the relationship betweenmanagers and subordinates as a trade – you give me something forsomething consequently. At the point when subordinates perform well,they get some sort of reward. When they perform inadequately, theywill be disciplined somehow.
Transformationalleadershiptakes control of a situation by passing on a clear vision of thegroup`s objectives, a marked passion for the work, and a capacity tomake the rest of the group feel revived and invigorated. According toLee, (2005) transformational leadership has a positive associationwith organizational commitment and job satisfaction
Laissez-faire leadership represents the absence of a transaction of sorts with respect to leadership in which the leader avoids makingdecisions, abdicates responsibility, and does not use theirauthority. It is considered active to the extent that the leader‘‘chooses’’ to avoid taking action (Antonakis, Avolio, &Sivasubramaniam, 2003).
Theconcept of value-basedleadershipholds that the values that are upheld by the organization and thevalues of individual leaders as well as employees should be aligned(Coperland, 2014, p. 106). Organizations that invest in value-basedleadership communicate organization’s core values to employees withthe objective of connecting the personal values of individualemployees with the core values of the organization (Voon, 2011, p.26).
Jobsatisfaction definedby Price, (2001) suggest that it is the effective orientation that anemployee has towards his or her work. Lund,(2003) argues that job satisfaction is a perceived relationshipbetween what one wants from one’s job and what one perceives it asoffering. Previous studies on Western and non-Western cultures havefound job satisfaction to be a prominent predictor of turn-over andretention (Larrabee et al. 2003). It may also be recognised as theindividual’s perception and evaluation of the overall workenvironment (Sempane, Rieger & Roodt, 2002). The situationalcharacteristics commonly proposed as key factors in job satisfactionare: the work itself, pay, promotion, supervision and co-workers,although other variables such as employee involvement andorganizational commitment and loyalty may also have impact. (Crossman& Abou Zaki, 2003).
Numerousresearch have been conducted in different industries on therelationship between leadership and job satisfaction. For instance,a study did by Rossmiller, (1992) uncovered that educators` view oftheir principals` transformational leadership abilities hasnoteworthy effects on educators` job satisfaction and frequentlyconcluded that principles who practice transformational leadershipwill encourage and improve job satisfaction among educators, incomparison with those principle who are not transformative in theirleadership styles. A similar study conducted by Hamidifar, (2010)atIslamic Azad University 16 Branches in Tehran revealedthat there is significant negative influence of laissez-faireleadership on subordinates’ job satisfaction.
Thisstudy will investigate the relationship between full range leadershipas well as value base leadership and the impact it has on employeesatisfaction at Standard Bank Business Banking.
Theresearch goal will be supported by the below assessment.
Assess if there is a significant relationship between full range leadership (transformational, transactional & laissez-faire leadership) and job satisfaction among employees at Standard Bank.
Assess if there is a significant relationship between value base leadership and job satisfaction among employees at Standard Bank.
Morethan 2 900 (2014: 3 188) leaders from across Africa participated in arange of leadership development programmes. Standard Banks strategyprovides clear guiding principles for prudent managementdecision-making, and leadership forms a key part of their strategicfocus on culture (Dobson, 2015). This research will add value to theGroups leadership development programmes.
Theresearch paradigm informing this study is a post positivistexploratory research approach (Johnson and Onwuegbuzie, 2004) as itinvestigates the views of employees through a quantitative method inthe form of a survey utilizing a questionnaire that consists ofclosed ended questions.
Thequestionnaire will be distributed directly to Standard Bank businessbanking employees nationally. The Multifactor LeadershipQuestionnaire, developed by Bass and Avolio (1990). The purpose ofthis questionnaire is to provide a clear measure of the leadershipfeatures displayed by leaders according to the Full-Range Leadership.The employees will also be requested to complete the MinnesotaSatisfaction Questionnaire, short version to evaluate their jobsatisfaction (Weiss et al, 1967)
Thestudy is based on a sample of 200 employees, specifically employed byStandard Bank business banking. The said financial institution, withover 150 years of existence have a population of 600 businessbankers, which include Account Executives, Account analysts andBusiness Managers business (Dobson, 2015).
Respondentswill be requested, by mail to complete the questionnaire. This willbe done by clicking on a link on the email which will direct them toa one page online survey answer sheet. Only a brief explanation andthe questions to be completed will be on this page. The simplicity ofthe process and scheduled time off normal work activities is expectedto increase the response rate and improve representativeness (Babbie,2011).
Leaderswill be rated by their subordinates and this can lead tovictimization. Leaders might also get into trouble when found thattheir leadership practices are in direct contradiction to the companystrategy.
Whencompleting the questionnaires, employees will be requested todisclose their position as an Account Executive, Account Analyst orBusiness Manager. Gender, male or female and age will also berequested. No personal information will be requested. All studyresponses will be anonymous and no names will be mentioned.
There’sa direct relationship between overall employee morale and employeejob satisfaction (Millett,2010). By participating in the completion of the surveys, employeescan answer, help, pinpoint and build on what’s working or correctwhat’s not.
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