Relationship between leadership style and employee retention agreement

relationship between leadership style and employee retention agreement

This study explores the association between leadership style, Furthermore, GGz Nederland, the Dutch association of MHCIs, agreed with the . are needed to enhance nurse satisfaction, recruitment, retention, and healthy. The study examined employees' perception of leadership, effects of staff a general agreement that leadership at BRRI was not performing poorly. their relationship skills which was one of the strong issues that emerged. Relationship between Manager‟s Leadership Style and Employee Engagement. . turnover. This research investigated the relationship between managers employees agreed with the leadership approach while means greater than.

What are leadership styles? And then explained the theoretical framework which elaborates the effects of three leadership styles participative, autocratic, and democratic on the employee performance.

Leadership Leadership is a process by which an executive can direct, guide and influence the behavior and work of others toward the accomplishment of specific goals in a given situation. Leadership is an ability of a manager to induce the subordinates to work with confidence and zeal.

Leadership can be defined as the capacity to influence a group realization of the goal. Leaders are required to develop the future vision, and to motivate the organizational members to want to achieve the visions and to improve the performance. Koudri suggests that leadership is to deal and cope with change, focusing on the long-term and the big picture, not always doing to safe himself in fact to take risks, and concentrating on people and their values, not just the bottom line [ 5 ].

Leadership styles The business writer Daniel [ 7 ] categorized different leadership styles. They suggested that leadership styles could be explained on a scale ranging from autocratic through democratic to participative to show the degree of authority and decision makes power of leaders and employees Figure 1. Decisions are made within teams, with each member having equal inputs.

He has a range of responsibilities associated with people, process and standards. Martin style may use a democratic approach when setting training budgets. Participative leadership style is that involves all members of a team in identifying essential goals and developing procedures or strategies for reach those goals. From this perspective, participative leadership can be seen as a leadership styles that relies heavily on the leader functioning as a facilitator rather than simply issuing orders or making assignments.

This type of involved leadership style can be utilized in business settings, volunteer organizations and even in the function of the home. One of the main benefits of participative leadership is that the process allows for the development of the additional leaders who can serve the organization at a later date.

Because leaders who favor this style encourage active involvement on the part of everyone on the team, people often are able to express their creativity and demonstrate abilities and talents that would not be made apparent otherwise that ultimately improve the performance of employees.

The discovery of these hidden assets help to benefit the work of the current team, but also alerts the organization to people within the team who should be provided with opportunities to further develop some skill or ability or future use.

Although each person will have their own preferred leadership style, the most effective leaders adopt a style which appropriate for the situation. They will consider several factors in deciding which to use: The task-is it business critical? Must a decision be made immediately? What will be potential impact on the business? The team-does it have the right skills and resources? Is it used to making decision? Tradition-what has been the norm in the past? And to become a head of all the team members is such a great responsibility.

The introduction of clear standards of leadership promotes the core values and maturity on their role and responsibility. As the situation affects which functions the leaders carries out, it would also affect the manner in which the functions are performed.

There are broadly three types of leadership styles according to Carter [ 2 ] and he also explains the different traits of each style that significantly affect the employee performance. Both words describe the type of leaders who give orders and expect instant obedient without argument.

Plans and policies are made in isolation from the group. Orders are given without explanation for the reasons or of future intentions. The autocratic leaders do not become part of them at all, but merely direct it. Traits of autocratic style: Theoretically the best type of leaders.

The democratic leader makes no suggestions but asks for the groups opinions. The participative leader is a leadership style in which employees takes part in the decision making process. Opinions of the group are sought by the participative leader who uses this information to make decisions. The group is kept informed about the future and are allowed to debate and proposed Changes to long term policy. Effect of different styles on employee performance As elaborate by Myron Rush and Cole the participative style of leadership has a greater positive effect on employee performance in which situation employee feel power and confidence in doing their job and in making different decisions.

In democratic style employee have to some extent discretionary power to do work so their performance is better than in autocratic style. Research Methodology The study will explore the problem in an interpretative view and investigation, using a descriptive approach which uses focus group, interviews. To illustrate the descriptive type of research, Bushman [ 8 ] will guide the researchers when he stated: The purpose of employing this method is to describe the nature of a situation, as it exists at the time of the study and to explore the effects of particular phenomena on the performance of employees and firm.

Data collection Secondary source: Secondary research will be integrated. There is not a significant relationship among effective leadership styles and performance improvement of employees. The Democratic leadership style has a significant effect on employee performance. The autocratic leadership style has a significant effect on employee performance. The participative leadership style has a significant effect on employee performance. Model of the research The model of the research with Independent variables, Dependent Variable, Leadership Styles is explained in Figure 2.

Model of the research. These styles affect everyone from senior and top management to the new entrant even of employees and new firms. They create the corporate culture that influences the organization and performance of employees in term of meeting deadline projects.

It is the result of personality traits, experience, attitude and philosophy of the leaders. Rhetoric specialists have also developed framework for understanding leadership [ 8 - 10 ]. Different situations require different leadership styles. The style should be one that most effectively meets the objectives of the team while balancing the interest of its followers and team members of that group which led by an effective leader.

Autocratic style effects Also known as authoritarian leadership, Milgron [ 11 ] said autocratic style clearly defines the division between leaders and workers. Autocratic leaders make decision with little or no involvement from employees.

These types of leaders are more confident, more sure about and comfortable with the decision making responsibility for the strategy plans and company operating. Although research indicates that autocratic leaders display less creativity than more contemporary new styles. Adair [ 9 ] only one person has the full authority and power over the followers or workers. His decision would be viewed and taken as the golden rule and should never be questioned and cannot be interrupted by any one.

They make plans of each milestone and their followers are bounded to work or follow the rules.

Effect of Leadership Style on Employee Performance | OMICS International

In short, the autocratic leader has full control of those around him and believes to have the complete authority to treat them as he wants. This is useful when immediate and quick decision and performance is required. Dawson [ 12 ] state that the autocratic style may show great results in a short time period.

However, excessive use of authority will distort productivity in the long term. People either get bored and dissatisfied and leave or fall into a malaise of hum-drum repetitive tasks without creativity and innovation and in short become demotivated. Heneman and Gresham [ 13 ] under the autocratic leadership style, all decision making powers are centralized and remains in the hand of leaders, as with dictators.

It has not been successful as it not provides strong motivation to the managers and employees. This style allows quick decision making. They believe that leaders only have to take decision and employees should have to follow only either they want to follow or not.

This type of leadership is so much rigid and may be a cause of employees de-motivation. Ittner [ 14 ] Autocratic leadership style promotes a one sided conversation and due to this the creative and leadership skills of the employees become restrictive and all are involved in repetitive work of daily activities.

As leaders have the authority, there is a chance of exploitation and distortion of employees. This style restricts workplace communication and socialization. It can also lead to disagreements and conflicts, if a group or company is led by an autocratic leader. Democratic leadership effects Milgron and Ittner [ 1114 ] state that this style is usually considered a benefit for the most companies.

relationship between leadership style and employee retention agreement

This style focuses the management that provides guidance and help to its team and departments while accepting and receiving the inputs from individual team members. These leaders not reserve to their activities and authority only but in actual they bother about consultation of employees.

Effect of Leadership Style on Employee Performance

Heneman and Gresham [ 13 ] under the democratic style promote the sharing of responsibility, the exercise of delegation and continual consultation.

In this style managers suggestions and recommendations on all major issues and decisions and effectively delegate tasks to subordinates and give them full control and responsibility for those tasks, and encourage others to become good leaders and involved in leadership and employee development.

Leadership style and productivity impact.

That led to more commitment of employee to department goals, performance to meeting deadlines. To his or her credits, they will not make major decision without firstly getting the input from those that will be affected, provide proper recognition, and delegate responsibilities.

relationship between leadership style and employee retention agreement

This leadership styles improve the performance in both short term and long term and can be used for any type of work project. Debashis [ 16 ] conclude that when organization need creative problem solving, conducting meetings for organization or department, training people for leadership roles and performing the day to day organizational tasks. This style provides confidence to employees who will help them for meeting deadlines, and departmental goals, to provide efficient team inputs.

Participative leadership effects Waggoner [ 17 ] said this is viewed as effective option. As compared to other typical styles, delegative leaders rarely make decisions; leave this portion on the employees. Mostly, these leaders delegate responsibility to their employees and offer guidance to trusted team members.

The reasons for these changes include more healthcare provisions, a more active role of the client, and a shift in quality demands.

The latter involves more systematic visitation, registration, and continuing medical education. The new reimbursement system, which is a result of transparency requirements, also places additional bureaucratic weight on the shoulders of the professionals.

In their merged form, the organization has easier access to capital. As a result of the latter, professionals felt a loss of control of their profession. Furthermore, GGz Nederland, the Dutch association of MHCIs, agreed with the government on extensive cost reductions in the coming years, 12 thus putting leaders as well as employees of MHCIs under strain to be as productive as possible. Therefore, we can presume that the Dutch MHCIs are indeed likely to be an example of turbulent work environments at this time.

This makes these institutions a conforming study environment for investigating the influence of leadership on employee satisfaction and absenteeism in a turbulent work place. In general, the aim of the regulatory and organizational changes that occurred in the mental health care sector is the improvement of the quality of the healthcare products offered.

However, to what extent this goal is reached in any specific MHCI is at the mercy of the performance of its employees. In turn, employee performance is influenced by their commitment and satisfaction. These are the very same factors that are under pressure due to the transitions of goals, roles, and knowledge.

Finally, leadership plays an important role in turbulent situations. This new leadership role can help employees deal with uncertainty and a turbulent working environment. The individual relationships between leadership style and the three factors employee satisfaction, absenteeism, and work turbulence are already described by many researchers and there are clear relationships between the three factors themselves.

However, most studies that investigated a combined relationship of these factors assumed a stable work environment. Therefore, the present study will investigate the influence of leadership style on employee satisfaction and absenteeism in a turbulent work environment, namely in a post-merger Dutch MHCI that is under governmental strain for cost reduction.

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The aim of the study is to explore employee satisfaction and sickness rates in association with the influence of managerial leadership style in the MHCI. Theoretical background Absenteeism and employee satisfaction Several studies show that downsizing or organizational restructuring can lead to decreased job satisfaction, lowered organizational commitment, a higher turnover rate, or increased absenteeism.

There was, however, no relationship with the duration of involuntary absence. This means that employees who are strongly committed to the organization or highly satisfied with their job show up more often at work than those with low commitment or low satisfaction. Therefore, the relationship between work turbulence and job satisfaction and the relationship between job satisfaction and employee absenteeism can be presumed.

When leadership is examined in an organizational setting, these factors include the organizational structure of the company, its culture, the relevant organizational layer, the means available to the leader, the product that is delivered, and the profile of the employees.

Additionally, economical and other external circumstances may have an impact. However, the concept of leadership may be simplified using existing categorizations.

One of these is the distinction between transactional and transformational leaders. According to Bass, 34 the transactional leadership style is characterized by contingent reward.

relationship between leadership style and employee retention agreement

Employing such a style, the leader gives rewards in exchange for effort and good performance. The transformational leadership style is a more personal style involving charisma, inspiration, intellectual stimulation, individualized consideration, and extensive delegation.

relationship between leadership style and employee retention agreement

This eventually leads to stronger feelings of self-worth and self-efficacy among employees. The method through which these feelings are fostered is called empowerment; giving employees authority, responsibility, and accountability for their tasks has a positive effect on their commitment and work satisfaction.

A recent study that focuses specifically on nurses, discussed that relational leadership styles, such as the transformational style, were associated with higher nurse job satisfaction, higher organizational commitment, more staff satisfaction with work, role, work environment, and pay, and higher productivity and effectiveness.

In addition, nurses had a greater intention to stay in the organization when the relational leadership style was employed. This is in contrast to the task-focused leadership, such as the transactional style, which scored lower on all the mentioned effects. Considering the recent changes in the Dutch mental health care industry, it is worthwhile noting that tensions may exist between the two types of leadership styles discussed earlier. On the one hand, economic and bureaucratic values may pull leaders towards a more industrial model or transactional style.

On the other hand, working with employees who are professional experts may invite a transformational style. More specifically, most studies examining transformational and transactional leadership in a health care setting emphasize the need for transformational leadership. Some studies explain that health care today is under a lot of pressure, and that transformational leadership is better suited for such situations. Efforts by organizations and individuals to encourage and develop transformational and relational leadership are needed to enhance nurse satisfaction, recruitment, retention, and healthy work environment.

This relationship has been confirmed by Walumbwa, 33 who found that certain leaders demonstrate higher levels of job satisfaction and commitment, and thereby less withdrawal intentions of employees.