The History Of Transformational Theory

Published Date: 02 Nov 2017

LEADERSHIP STYLE AND ORGANIZATIONAL COMMITMENT

in Saudi Steel Pipes Company

BY

Hanadi Ali AlMarzouq

ID# 51090236

Project Paper Submitted in Partial Fulfillment of the Requirement

for the Business Research Methods

OPEN UNIVERSITY MALYSIA

2013

TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION 1

1.1 Background of the Research 1

1.2 Research Problem 5

1.3 Objectives of the Research 5

1.4 Significance of the Research 6

1.5 Limitations of the Research 6

CHAPTER 2: LITERATURE REVIEW 7

2.1 Leadership 7

2.1.1 Introduction 7

2.1.2 Definition of Leadership 7

2.1.3 Leadership Theories 8

2.1.3.1 Great Man Theory 9

2.1.3.2 Treat Theory 9

2.1.3.3 Behavioral Theory 10

2.1.3.4 Contingency Theory 11

2.1.3.5 Transactional Theory 12

2.1.3.6 Transformational Theory 13

2.1.3.7 Laissez-Faire Leadership Theory 14

2.2 Organizational Commitment 14

2.2.1 Definition of Organizational Commitment 14

CHAPTER 3: RESEARCH METHODOLOGY 20

3.1 Introduction 20

3.2 Research Objectives and Hypothesis 20

3.3 Research Design 21

3.4 Population and Sampling Procedure 22

3.5 Research Instruments 22

3.5.1 Multifactor Leadership Questionnaire (MLQ) 22

3.5.3 Reliability and Validity of Research Instruments 24

3.5.3.1 Reliability and Validity of MLQ 24

3.5.3.2 Reliability and Validity of OCQ 25

3.6 Research Variables 25

3.7 Data Collection 26

3.8 Data Analysis 26

3.8.1 Cronbach’s Alpha Coefficient 26

3.8.2 Hypothesis Testing 27

CHAPTER 4: DATA ANALYSIS AND RESULTS 28

4.1 Introduction 28

4.2 Sample characteristics & Demographic Data 28

4.2.1 Response Rate 28

4.2.2 Demographic Data 28

4.3 Descriptive Statistics 28

4.6 Results of Correlation Analysis 28

CHAPTER 5: DISCUSSION 29

5.1 Discussion of Results 29

CHAPTER 6: SUMMARY AND CONCLUSION 30

6.1 Introduction 30

6.2 Implications and Recommendations 30

6.3 Conclusion 32

REFERENCES 33

APPENDICES 40

Chapter 1:1 Introduction

Background of the study

Today’s world is more turbulent, chaotic and challenging than ever before. Organizational changes are increasingly becoming a major component of everyday organizational functioning. The basic principles of doing business successfully are fundamentally changing. Today’s customers shape organizations by demanding what they want, when they want it, how they want it and what they will pay for it. The historical boundary between customer, supplier and competitors is increasingly becoming blurred. Many organizations have responded to these competitive pressures by downsizing, restructuring and transformation, and thus created a less secure organizational climate. Saudi Steel Pipes Company is not an exception to this situation; the company is facing great challenges and high competition in the Saudi market and in Gulf region. The current environment is accompanied by shortage of skilled, competent and committed employees. The competitive edge of companies no longer lies in its product, but in its people. People are the lifeblood of organizations and they represent the most potent and valuable resources of organizations. No organization can perform at peak levels unless each employee is committed to the organization’s objectives and works as an effective team member. It is no longer good enough to have employees who come to work faithfully every day and do their jobs independently. Employees now have to think like entrepreneurs while working in teams and have to prove their worth. People are considered intangible resources which are difficult to imitate. People are becoming a source of competitive advantage for most organizations. Thus, the commitment of competent employees is critical to the success of the organization.

Saudi Steel Pipe Company (SSP) has been identified as Saudi Arabia's leading producer of welded metal tube since its beginning in 1980. The organization is the kingdom's most flexible producer of HFI (high regularity induction) welded metal tube providing the area's Oil and Gas, Development, and many other market demand. The Company today has development potential of 240,000 measurement plenty of top great quality HFI welded metal tube illustrating from 4 unique development lines for a size range from 1/2" to 20". A dedication to great quality is easily noticeable in the investment in innovative computer managed technology that allow providers to observe all crucial welding factors on a real-time basis throughout the development pattern. This ability has been a key factor in SSP's approval as a unique producer of welded metal tube in the Oil and Gas industry (SSP, 2011).

Another first for Saudi Arabia, and the area at large, was the organization of Hot Introduction and Heat treatment service able to produce top quality turns in tube from 2" to 48" across, with wall width up to 50 mm. This investment was praised by many of the area's key consumers such as Saudi Aramco (Saudi Arabian American Oil Company) and Sabic (Saudi Basic Industries Corporation). In order the company achieves its vision to be a leader in the support industries for oil and gas sector, the company needs to sustain their competent people by building a strong commitment basis among their workforce (SSP, 2011).

1.2 Research Problem

Saudi Steel Pipes Company has well recognized human capital as a competitive advantage. Thus, for SSP’s vision to become a reality, its leadership relies on employees to execute strategic objectives. The employees’ knowledge, experience, skills, expertise, the ability to collectively

innovate and their decision making processes is key to the success of SSP.

However, SSP may face challenges such as losing competent employees to other competitors (such as Alkhorayef Steel Pipes, Arabian Pipe Co., Jazeera Steel, and Rajhi Steel). Turnover among these competent employees results in interruptions in normal operations, loss of efficiency, increased replacement and recruitment cost, project delays, increased customer dissatisfaction, scheduling difficulties.

Committed employees usually act in the interests of their organization and/or the customers being served by the organization. Furthermore, they tend to generate high performance business outcomes as measured by increased sales, improved productivity, profitability and enhanced employee retention. Consequently, lack of employee commitment threatens the survival of the organization because a loss of a competent employee is a loss of competitive advantage for the organization. It does not take many uncommitted employees to prevent an organization from prospering and ceding competitive advantage to competitors. Thus, the ability of SSP’s leadership to retain competent employees is critical to its success.

1.3 Objectives of the Research

The overall objective of the research is to identify different aspects of leadership style that have an influence on employee commitment, and also to be able to determine the relationship between these two variables. The results of the research could shape how upcoming leadership coaching will be designed within the organization being researched. Thus, the main objective of the study is to investigate the relationship between leadership style and employee commitment to a steel company in Saudi Arabia.

The hypothesis is concerned with the relationship between the leadership style being practiced within the organization and its weight on the employee commitment. The null hypothesis states that there is no statistical significant relationship between leadership style and employee commitment to the organization and the alternate hypothesis states that there is a statistically significant relationship between leadership style and employee commitment to the organization.

1.4 Significance of the Research

The question that every leader must address is, what factors contribute to an employee’s desire to remain committed to the organization? This question is very important in order to maintain a competent workforce. The reasons behind employees leave an organization range from lack of job satisfaction, incompatibility with others at work, to a changing family structure, employees appreciate leaders and organizations that provide opportunities for decision latitude, challenges, responsibility and meaning, impact, as well as self-determination.

It’s been found that when workers were handled with concern, they shown greater levels of dedication. These are more likely to reciprocate by being more dedicated to their companies than workers in more conventional companies. Committed employees, working in an environment of trust, flexibility, and empowerment, are expected to act in the best interests of an organization.

This has sparked the need to enquire about the relationship, between leadership styles and employee commitment to the organization, in order to deal effectively with the problem. There is considerable research available suggesting that the transformational leadership style is favorably associated with business dedication in a wide range of business configurations and societies. Hackett and Allen (1995) reported positive correlations between leadership behaviors such as charm, perceptive stimulation, personalized consideration, and dependant reward on one hand, and affective, continuance, and normative commitment, on the other hand.

The results of this research would help the leadership of Saudi Steel Pipes to practice leadership behaviors that will encourage employee commitment to the organization. The study will also contribute to the body of knowledge by providing information on the relationship between leadership styles and organizational commitment.

1.5 Limitations of the Research

The research was conducted at one of the steel manufacturing companies in the eastern province of Saudi Arabia. The selection of a single case study brings forth many limitations as far as the generalization of the results of the study is concerned. To study the relationship between leadership styles and organizational commitment through multiple case studies, for example, is clearly one of the future research challenges in this topic. Multiple case studies would enable us to test this relationship of the study further.

Another limitation of the current research is the self-reporter bias. The inherent limitation of self-reporter bias is that the respondent may not have answered each statement in the survey honestly and may have reported their exhibit behaviors they wished they portrayed rather than the actual

behaviors portrayed in their management positions. Another limitation is the comparatively small sample size used. Moreover, English language is the second language for all the respondents which also affected the respondent’s degree of understanding of questionnaire statements, thus

affected the accuracy of results.

Chapter 2: literature review

2.1 Leadership

2.1.1 Introduction

According to Gardner, Leadership has a significant part in developing the mind-set that is the community. They can provide as signs of the ethical oneness of the community. They can show the core that hold the community together. Most important, they can consider and communicate objectives that raise people out of their small preoccupations carry them above the disputes that split a community apart, and merge them in desire of objectives worth their best initiatives (as cited by Bennis, 1989). In November 1987, Time newspaper asked in a cover story, "Who’s in Charge?" and answered its own question, saying, "The nation calls for leadership, and there is no one home." A recent Google search on "lack of leadership" produced more than 53.3 million hits up from 27,000 five years ago (as cited by Bennis, 1989).

Leadership is one of the world’s oldest issues. As societies and technologies become more advanced, demand for great leaders in modern times is substantially increased. The turbulent business environment has created high need for leaders who can meet the challenges of the organizations. The globe's craving for authority has been increasing for years. There is no question that a charming new innovator took the globe level on Nov 4, 2008, with the selection of Barack obama as president of the U. s. Declares (Bennis, 1989). Harvard professors Kotter & Heskett (1992) were among the first to show that the single most important factor in successful organizational change is competent leadership.

The following sections present an overview of the definition of leadership. Leadership is then discussed in terms of the most popular theories; great man theory, trait theory, behavioral theory, participative theory, situational theory, contingency theory, transactional theory, transformational theory, and laissez-faire leadership theory.

2.1.2 Definition of Leadership

In leadership literature, more than one hundred different definitions of leadership have been identified. One specific definition of leadership is a very complex task. Stodghill (1974) defined leadership as the "process of influencing the activities of an organized group in efforts towards goal setting and goal achievement". Leadership is a process of moving people in a direction that is genuinely in their long term interests (Rutter, 1995).

Leadership is a process of interaction between leaders and subordinates where a leader attempts to influence the behaviour of his or her subordinates to accomplish organizational goals (Yukl 2005). In other words, leadership is described as the selection of bases of influence (Krause 2004). Kanungo (1998) regarded leadership as exercising influence over others by utilizing various bases of social power in order to achieve organizational objectives.

2.1.3 Leadership Theories

2.1.3.1 Great Man Theory

The Great Man Theory of leadership attempted to explain leadership on the basis of heredity. The underlying concept of the theory is that the leader is genetically endowed with superior qualities that differentiate him from his followers (Dowd, 1936). In the early years of the twentieth century, several leadership theorists were influenced by Galton’s (1870) study of the hereditary background of great men. He proposed that great leaders inherit their ability to lead. Motivated by Galton’s observations, Woods (1913) studied the history of 14 nations over periods of five to ten centuries to determine the effect of the governing ruler’s leadership style upon his

follower’s standard of living. His findings indicated that the conditions of each reign were directly related to the abilities of the rulers present. Thus, a strong leader would precipitate a prosperous era, while a weak leader would be cause for a less comfortable time period. Woods concluded that the leader makes the nation and shapes it in accordance with his abilities (1913).

Wiggam (1931) proposed a method by which superior leaders could be maintained in ample quantity. He calculated that an adequate supply of leaders depended upon a high birth rate among the biologically superior aristocratic classes. Dowd (1936) claimed that leaders are always more

intelligent, energetic, and superior than their followers. Jennings (1960) published a comprehensive survey of the great man theory of leadership. He argued that if the leader is endowed with superior qualities then it should be possible to identify these qualities.

2.1.3.2 Behavioral Theory

This theory focused on people’s actions which was quite different from the trait approach, which centered on a person’s physical and personality characteristics. This concept considered leadership actions in an attempt to determine which effective leaders do, not how they look to others. Researchers studying the behavior approach, also referred to as the style approach, determined that leadership is composed essentially of two kinds of behaviors: task behaviors and relationship behaviors. The behavior approach attempted to explain how these two types of behaviors interface in a manner that allowed a leader to influence a group to reach a goal.

These models are based on what effective and ineffective leaders actually do, how they delegate tasks to subordinates, where and when they communicate to others and how they perform their roles. The main behavioral models are McGregor’s Theory X and Theory Y, that suggested two distinct concepts of authority behaviors: one negative marked theory X and the other beneficial marked theory Y. His concepts deal that authority actions are based on an supposition about workers. His Concept X supposition contains the fact that workers hate perform and will avoid it if possible. The Concept Y supposition contains the fact that workers can view perform as a beneficial experience given the right conditions. Here, managerial behaviors include providing encouragement, positive reinforcement and rewards.

There are two primary, independent factors which are consideration of structure (employee-oriented leadership) and initiation of structure (production-oriented leadership). The researchers focused on the behaviors that leaders enacted and how they treated followers. The impact of this approach dealt with the roadening of management’s focus to include people-oriented as well as task-oriented activities.

However, leadership behaviors that are appropriate in one situation aren’t necessarily appropriate in another. Because the behavioral models failed to uncover a leadership style that was consistently appropriate to all situations, other leadership models were devised (Hellriegel et al., 2004).

2.1.3.3 Contingency Theory

Contingency theory is a leader match theory that explains the match of leaders to appropriate situations. The contingency approach suggests that no single leadership style, specific leadership functions or particular leadership qualities are recommended as the best under all circumstances.

The contingency approach represents a shift in leadership research from focusing on the leader to looking at the leader in conjunction with the situation in which the leader works (Fiedler, 1978).

Contingency theory posited that effective group performance was dependent upon the appropriate match of the leader’s personality and the situation. Personality orientation of the leader is centered on a task or interpersonal style.

The weakness of the contingency approach is that it failed to provide some universal principles of leadership. The theory has not adequately explained the link between styles and situation. The contingency approach also assumes that leaders are merely shaped by their situation, when it might be possible that truly effective leaders can shape situations around them.

2.1.3.4 Transactional Theory

Transactional leadership theory is an exchange of rewards with subordinates or services rendered. Transactional leadership seeks to motivate followers through extrinsic rewards. Transactional leaders provide their followers with vision and take the values, needs, motivations, and purposes of followers as given, unchanging, and fused.

Transactional leadership concept is based in the public learning and social return concepts, which identify the shared characteristics of leadership. It is based on the understanding that leadership does not actually live in the person or situation, but exists in the public connections between the innovator and the followers.

Transactional leaders may also depend on active control by exemption which happens when the innovator watches supporters to ensure errors are not made, but otherwise, allows the position quo to are available without being resolved. In inactive control by exemption, the leader intervenes only when factors don’t go the right way. In general, one can determine that transactional leadership is an return connection that includes the compensate of effort, efficiency and commitment.

2.1.3.5 Transformational Theory

Transformational leadership occurs when leaders and followers lift up one another to top levels of ethics and motivations, and this result in a transforming effect on both leaders and followers. In a transformational approach, the purposes of leaders and followers that might have begun as separate become related. Transformational leader is the one who motivates followers to do more than they initially anticipated to do.

A transformational leader influences his or her followers to look beyond their self-interest for the good of the group. From a transformational leadership perspective, leadership is considered to be about doing what has never being done, and it includes visionary and charismatic leadership. The transformational approach views leadership as a shared process. The outcome of this process is the ability to transform oneself, others, and the organization to new, unimagined heights of motivation and performance.

Bass and co-workers have determined five factors which signify behavior components of transformational leadership: 1) idealized impact (attributes); 2) idealized impact (behaviour); 3) motivational inspiration; 4) perceptive activation and 5) personalized consideration. Idealized impact features occur when supporters identify with and replicate those leaders who are reliable and seen as having an obtainable objective and perspective.

Burns (1978) claimed that transactional leadership involves an interaction between leaders and

followers. Leaders approach followers, under the transactional model, with an eye to exchange one factor for another: tasks for votes or financial assistance for strategy contributions. In other words, transactional leadership involves contingent reinforcement. Followers are motivated by the leaders’ promises, praise, and rewards or they are corrected by negative feedback, reproofs, threats, or disciplinary actions. Transformational leadership, on the other hand, is significantly different from transactional leadership in its focus and purpose.

2.1.3.6 Laissez-Faire Leadership Theory

Laissez-faire leaders as an excessive inactive leader who is hesitant to impact subordinates’ significant independence, to the point of abdicating his/her obligations. In a feeling, this incredibly inactive kind of leadership indicates the lack of leadership. Leaders who handle by exemption get involved only when techniques and requirements for achieving projects are not met. It can therefore be determined that by ‘laissez-faire’, it is intended that the leader is not completely inspired or effectively experienced to execute supervisory responsibilities.

2.2 Organizational Commitment

2.2.1 Definition of Organizational Commitment

Organizational Commitment is determined either as an worker mind-set or as a power that holds an worker to an company. There is the attitudinal strategy, the behavior strategy, the normative strategy and the multidimensional strategy.

The attitudinal approach views commitment largely as an employee attitude or more specifically as a set of behavioral intentions. Organizational commitment is the relative strength of individuals’ identification with and involvement in a particular There are three characteristics of organizational commitment: (1) a strong belief in and acceptance of the organization’s goals and values, (2) a willingness to exert a considerable effort on behalf of the organization and (3) a strong intent or desire to remain with the organization. Within this approach, the factors associated with commitment include positive work experiences, personal characteristics and job characteristics, while the outcomes include increased performance, reduced absenteeism and reduced employee turnover.

The behavioral approach emphasizes the view that an employee continues with an employing organization because investments such as time spent in the organization, friendships formed within the organization and pension benefits, tie the employee to the organization. Thus an employee becomes committed to an organization because of "sunk costs" that are too costly to lose.

The normative approach is the third approach, which argues that congruency between employee goals and values and organizational aims make the employee feel obligated to the organization Organizational commitment has been defined as "the totality of internalized normative pressures to act in a way which meets organizational goals and welfare".

O’Reilly and Chatman (1986) developed their multidimensional approach based on the assumption that dedication represents an attitude towards the organization, and the fact that various mechanisms can lead to development of attitudes. They argue that commitment could take three distinct forms that they call compliance, identification and internalization. They believed that compliance would occur when attitudes and corresponding behaviors are adopted in order to gain specific rewards. Identification would occur when an individual accepts influence to establish or maintain a satisfying relationship.

Meyer and Allen (1991) defined affective commitment as "an employee’s attachment to, identification with and taking part in the organization", continuance commitment as "commitment based on the costs that employees correlate with leaving the organization" and normative commitment as "an employee’s feelings of obligation to remain with the organization". Each of these three dimensions represents a possible description of an individual’s attachment to an organization.

CHAPTER 3: RESEARCH METHODOLOGY

3.1 Introduction

The previous chapter reviewed the literature related to leadership style and organizational commitment. This chapter describes the research methodology used in this study to test the hypothesis. The population, sample and the sampling approach is also described. Furthermore, the two instruments that were used in the research are described and their applicability discussed. Moreover, research variables are also identified. Finally, a brief description of the relevant statistical techniques used in the research for the collection and analysis of data is also provided.

3.2 Research Objectives and Hypotheses

The overall goal of the research is to identify different dimensions of leadership style that have an influence on organizational commitment in general and be able to determine the relationship between the two. Thus, the main objective of the study is to investigate the relationship between

various leadership styles and various organizational commitment styles to a production facility in Saudi Arabia.

From the identification of the objectives of the research, the hypothesis was formulated. The hypotheses is concerned with the relationship between leadership style being practiced within the organization and its influence on the various organizational commitment styles. The results of the research could shape how future leadership training will be configured within the company being researched.

3.3 Research Design

Research design refers to a plan, blueprint or guide for data collection and interpretation – a set of rules that enable the investigator to conceptualize and observe the problem under study". From the hypotheses it is evident that the research is of a quantitative nature.

This method consists of the following steps: Selection of basic Survey, Questionnaire, Selection of sample design, Nonprobability Sampling, Collection of data, Editing and coding data, Data processing and analysis, Interpretation of findings, and Report.

3.4 Population and Sampling Procedure

The targeted population for this study is professionals (managers, engineers, technicians, and supervisors) who have been with the company for at least a year. Managers and their subordinates are also required to have been with each other for at least a year.

3.5 Research Instruments

Two questionnaires were used in this research to obtain information on leadership and organizational commitment, respectively, namely the Multifactor Leadership Questionnaire (MLQ) and Organizational Commitment Questionnaire (OCQ).

3.5.1 Multifactor Leadership Questionnaire (MLQ)

The MLQ takes the form of a number of statements about the leadership style of the individual being tested. The questionnaire used in this study contains 45 statements that identify and measure the key aspects of leadership behaviors. Each statement corresponds to one of the nine components of transformational, transactional or laissez-faire leadership factors.

The MLQ comprises a 5 point Likert scale and the respondents were instructed during the administration of the questionnaires by the researcher to mark the most suitable answer. The scale ranges from 0 to 4 as follows:

0 - Not at all

1 - Once in a while

2 - Sometimes

3 - Fairly often, and

4 - Frequently if not always

Each respondent was required to assess and testify as to how frequently the behaviors described by each of the statements are exhibited by their leader. The MLQ consists of two booklets known as the ‘rater booklet’ and the ‘leader booklet’ (see Appendices A & B respectively).

These two versions consist of exactly the same statements, except that they are written from different perspectives. The leader, for example, would be given the statement, ‘I spend time teaching and coaching’, whereas the subordinate’s questionnaire would say, ‘The person I am rating spends time teaching and coaching’.

In this research, leaders completed the leader MLQ, by rating themselves in terms of the transformational, transactional or laissez-faire leadership factors. Subordinates also completed the rater booklet of the same questionnaire. The leaders were rated in terms of the same criteria on which they have rated themselves. In order to gain an accurate picture of the leader’s ability, the rater MLQ is preferred to be completed by three or more respondents (Bass, 1985b), and since the sample is small, we were able to have two or more subordinates to rate the leader.

3.5.3 Reliability and Validity of Research Instruments

3.5.3.1 Reliability and Validity of the MLQ

The MLQ has been tested for reliability and validity in many settings (Pruijn and Boucher, 1994). Bass (1985b), Bass and Avolio (1989) as well as Yammarino and Bass (1990) have proved the content and concurrent validity of the MLQ. Avolio and Bass (1997) also proved the construct validity of the MLQ. According to Bass and Avolio (1997), further reliability of the MLQ has been proven many times through test-retest, internal consistency methods and alternative methods.

Avolio, Bass and Jung (1995) confirmed the reliability of the MLQ by using a large pool of data (N = 1394). According to Avolio and his colleagues the MLQ scales exhibited high internal consistency and factor loadings. They reported reliabilities for total items and for each leadership factor scale that ranged from 0.74 to 0.94.

Den Hartog, Van Muijen and Koopman (1997) also investigated the internal consistency of the MLQ subscales. Their study group consisted of approximately 1200 employees from several diverse organizations (commercial businesses, health-care organizations, welfare institutions and

local governments). Reliability (Cronbach’s Alpha coefficient) for the subscales of transformational leadership ranged from 0.72 to 0.93; transactional leadership ranged from 0.58 to 0.78; and laissez-faire leadership was 0.49.

3.6 Research Variables

Nine independent measures of this research were identified for the multifactor leadership questionnaire. Five separate measures of transformational leadership were used as independent variables; these are idealized influence (attributed), idealized influence (behavior), inspirational

motivation, intellectual stimulation, and individual consideration. Moreover, three separate measures of transactional leadership were used also as independent variables; contingent reward, management-by-exception (active), and management-by-exception (passive). The last measure which was used as independent variable is the laissez-faire measure of laissez-faire leadership.

On the other hand, three separate measures of organizational commitment were used as dependent variables. These measures are the affective commitment scale, continuance commitment scale, and normative commitment scale of the organizational commitment questionnaire.

3.7 Data Collection

The data collection method used in this research is questionnaire. Questionnaires can be administered personally, mailed to the respondents or even electronically distributed depending on the situation.

A list of all managers and professional employees in the sample was obtained from the Human Resource Manager in Saudi Steel Pipes. The For the purposes of this research, the questionnaires were used to gather the necessary information. In an attempt not to disrupt business operations and to ensure that the respondents would receive the documents in the shortest possible time, questionnaires could be distributed through the internal mailing system of the company. This is a non-personal technique of data collection due to the fact that the respondents complete the questionnaires without the interviewer being present. This technique of data collection addressed issues of cost, time and geographical constraints.

3.8 Data Analysis

Once the questionnaires had been completed, the researcher then codes the responses in each questionnaire. These scores would be captured in a Microsoft EXCEL spreadsheet for statistical analysis with respect to Leader, Rater, Organizational Commitment and Demographic variables.

Once data was collected, it was necessary to use statistical techniques to analyze the information, as this study is quantitative in nature. The scores captured onto the Microsoft Excel spreadsheet would be then imported into SPSS, where a two-tailed Pearson correlation analysis would be conducted to test the hypothesis of this research (using SPSS 15.0). The correlation analysis helped in determining both the form and degree of the relationship between the leadership style and employee commitment. Thus, both the strength of the relationship between variables and the level of statistical significance were assessed.

CHAPTER 4: DATA ANALYSIS AND RESULTS

4.1 Introduction

In chapter three, we covered the research methodology used, while the research objectives and the research hypotheses were clearly stated. The chapter also presented the research population, sample, and the instruments used with their respective reliability and validity. Data collection, analysis, and hypotheses testing were also discussed.

In this chapter, the results of the correlation analysis of the research hypotheses were discussed. In order to summarize the quantitative data and the relationships, a descriptive statistics was used.

4.2 Sample Characteristics and Demographic Data

4.2.1 Response rate

Let us assume that they were 100 participants only 85 of them gave back their feedback, then the response rate is 85%.

4.2.2 Demographic data

Demographic data could be collected in various aspects, like; all participants were males, Arabs (Arabic Native Speakers) and have experience in their organization and a bachelor degree as a minimum educational level.

4.3 Results of Correlation Analysis

The hypotheses of the study are concerned with establishing a relationship between leadership style and employee commitment. The relationship between leadership style and organizational commitment was investigated using two-tailed Pearson analysis. This provided correlation coefficients which indicated the strength and direction of linear relationship. The p-value indicated the probability of this relationship’s significance.

Coefficients less than 0.5 represent a weak relationship, coefficients greater than 0.5, but less than 0.8, represent a moderate relationship and coefficients greater than 0.8 represent a strong relationship.

CHAPTER 5: DISCUSSION

Using virtual results for this research we might come up with the coming discussion;

5.1 Discussion of Results

The results obtained suggest that there is a strong positive relationship between the transformational leadership behaviors and organizational commitment with its three dimensions; affective commitment, continuance commitment and normative commitment.

This suggests that leadership behaviors which involve building trust, inspiring a mutual vision, encouraging creativeness and emphasizing improvement is positively related to organizational commitment. For affective commitment, the study suggests that these leadership behaviors are positively and moderately related to how employees feel about the desire to adhere to the company.

The results also indicated a moderate, but significant, positive relationship between transactional leadership and both continuance and normative commitment. On the other hand, there was a weak, but major positive association between transactional leadership and affective commitment.

CHAPTER 6: SUMMARY & CONCLUSION

6.1 Introduction

In this chapter the implications of the analysis results are discussed in the light of the literature reviewed in chapter 2 of this research. Research recommendations and conclusion are also included.

6.2 Implications and Recommendations

Empirical evidence seems to support the hypothesis that leadership style can affect the development of organizational commitment. These research findings suggest that transformational and transactional leadership behaviors are positively in relationship with affective, continuance and normative commitment. Both transformational and transactional leadership behaviors have almost similar influence on organizational commitment. Therefore, managers might be able to increase employees’ levels of organizational commitment especially the affective commitment by improving both transformational and transactional leadership behaviors. This is critical to the organization as affective commitment results in better performance and more meaningful contributions than normative commitment and continuance commitment.

Because transformational and transactional leadership styles have been found to have a significant positive relationship with organizational commitment, the organization should attempt to develop these two leadership styles within their environment as committed employees are most desirable. By implementing programs that encourage leaders to develop transformational and transactional leadership styles, the organization will be able to improve the commitment levels of its employees.

Organizations that require their employees to develop organizational commitment should provide comprehensive training that will encourage leadership to exhibit leadership behaviors such as building trust, inspiring a shared image, encouraging creativeness, emphasizing development, and recognizing accomplishments. Leaders can play a role in building commitment by assuring that the organization makes effort to address both the work content and the work context by engaging in management practices to minimize employee alienation. They should demonstrate their commitment to the employees by sharing information, provide for the development and growth of employees within the organization and offer more than market related incentives.

6.3 Conclusion

The main objective of this research was to investigate the relationship between leadership styles and organizational commitment styles in Saudi Steel Pipes. Let us just assume that this research concluded that the transformational leadership was positively related with organizational commitment; affective, continuance and normative. The strongest relationship was seen with affective commitment. This means that leadership behaviors which entail engender trust, inspiring a shared vision, generating passion, encouraging creativeness, providing training and recognizing accomplishments, do explain the deviation in how employees think about wanting to stay with the organization and do explain some of the deviation in how staff feel about needing to, or feeling constrained to, stay with the organization. The more they display and practice these behaviors, the more employees may want to, need to, or feel obligated to stay.

Transactional leadership had a positive relationship with affective, continuance, and normative commitment. While transformational leadership is seen affecting the affective commitment mostly, the transactional leadership is found affecting mostly both continuous and normative commitment. This means that leadership behaviors, which involve motivating employees through rewards, monitoring and clarifying roles explain to good extent the variation in how employees feel about needing to or feeling requiring to or feeling required to, stay with the company. Supervisors may be able to improve their transactional leadership actions by giving adverse reviews in regular basis and using terminology that is both making clear and motivating. These findings also disclose that the laissez-faire leadership has a negative relationship with affective, continuous and normative commitment. This means that leadership behaviors, which involve avoiding getting involved when problems arise, avoid decision making, and inactiveness will negatively impact on organizational commitment especially on normative commitment. This explains some of the deviation in how employees feel about not obligated to stay with the organization.

Overall result from this study suggest that transformational, transactional and laissez-faire leadership styles do take part in significant roles in determining levels of affective commitment, continuance commitment and normative commitment in Saudi Steel Pipes.

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