The impact of selected leadership styles and behaviors on employee motivation and job satisfaction

Leadership is a complex concept that involves the interrelationship between the leader, the follower, and the organizational context. As a result, the study of leadership has sparked the interest of management researchers for extended periods of time. As organizations evolve with the influence of globalization and technology, the definition of leadership has shifted to include not only the influence over members of a group, but also the ability to motivate others in assisting the organization with meeting its goals, mission, and objective. This dissertation explored selected leadership styles and behaviors in order to investigate the relationship between leadership style and behaviors, employee motivation, and job satisfaction. Systematic review methodology and evidence-based research was used for this study. Findings indicated that leadership entails a combination of styles and behaviors and there is no single leadership style/behavior that is appropriate for all situations. The study further validated that the selected leadership style/behavior of an organization has both positive and negative impact on employee motivation and job satisfaction to varying degrees. More empirical studies are needed to provide management with evidence that can be used to manage the new forms of organizational structures that are emerging in today’s technology driven work force.Running Head: LEADERSHIP AND EMPLOYEE MOTIVATION AND SATISFACTION 1 The Impact of Selected Leadership Styles and Behaviors on Employee Motivation and Job Satisfaction Francisca Agboli Chukwura Dissertation submitted to the Faculty of the Graduate School of the University of Maryland University College in partial fulfillment of the requirements for the degree of Doctor of Management Dissertation Advisory Committee: G. David Andersen, EdD Eric B. Dent, PhD March 2017 LEADERSHIP AND EMPLOYEE MOTIVATION AND SATISFACTION 2 Abstract Leadership is a complex concept that involves the interrelationship between the leader, the follower, and the organizational context. As a result, the study of leadership has sparked the interest of management researchers for extended periods of time. As organizations evolve with the influence of globalization and technology, the definition of leadership has shifted to include not only the influence over members of a group, but also the ability to motivate others in assisting the organization with meeting its goals, mission, and objective. This dissertation explored selected leadership styles and behaviors in order to investigate the relationship between leadership style and behaviors, employee motivation, and job satisfaction. Systematic review methodology and evidence-based research was used for this study. Findings indicated that leadership entails a combination of styles and behaviors and there is no single leadership style/behavior that is appropriate for all situations. The study further validated that the selected leadership style/behavior of an organization has both positive and negative impact on employee motivation and job satisfaction to varying degrees. More empirical studies are needed to provide management with evidence that can be used to manage the new forms of organizational structures that are emerging in today’s technology driven work force. Keywords: leadership, motivation, job satisfaction, transformational leadership LEADERSHIP AND EMPLOYEE MOTIVATION AND SATISFACTION 3 Acknowledgements I would like to thank my dissertation advisors, Dr. Eric Dent and Dr. David Andersen. To Dr. Dent, thank you for your advice and guidance in selecting a topic. You helped me get the clarity I needed to embark on this journey. Dr. Andersen, I will never be able to thank you enough for your kindness, continuous words of encouragement, and sense of humor. I will always remember the “comma rule” even in my everyday writing. I would also like to thank Dr. Bryan Booth and the extended DM Program faculty and staff for their continuous support and positive reinforcement throughout the years. This accomplishment would not have been possible without the inspiration, support, and encouragement of my entire family. My parents, Dr. and Mrs. Chris Agboli, who have been my role models all my life. To my husband, Udo, and my three wonderful children, Obi, Amaka, and Zitem, thank you for your love, patience, and sacrifice. To my siblings, thank you for cheering me on and always assisting whenever I needed help. I also thank my friends and co-workers for their encouragement to keep pushing to get it done. You are all truly the wind beneath my wings! Special thanks to my expert panel reviewers, Dr. Patrick Ebri, Dr. Hammad Elbedour, and Dr. Paul Jaikaran, for your encouragement, time, and feedback. Finally and most importantly, I thank God for the strength and the grace to complete this journey. LEADERSHIP AND EMPLOYEE MOTIVATION AND SATISFACTION 4 Dedication This dissertation is dedicated to my parents, Mrs. Patricia Ofili Agboli and Dr. Chris Agboli, who taught me the meaning of hard work and sacrifice. LEADERSHIP AND EMPLOYEE MOTIVATION AND SATISFACTION 5 Table of Contents Abstract .......................................................................................................................................... 2 Acknowledgements ......................................................................................................................... 3 Dedication ...................................................................................................................................... 4 Table of Tables ............................................................................................................................... 8 Table of Figures .............................................................................................................................. 9 CHAPTER 1: INTRODUCTION ................................................................................................. 10 Background ............................................................................................................................... 12 Leadership Styles and Behavior ............................................................................................ 12 Employee Motivation ............................................................................................................ 18 Employee Job Satisfaction ..................................................................................................... 21 Statement and Significance of the Problem .............................................................................. 24 Purpose of the Study ................................................................................................................. 25 Significance to Management Practice and Scholarship ............................................................ 26 Research Questions ................................................................................................................... 27 Propositions ............................................................................................................................... 28 Organization of the Dissertation ............................................................................................... 29 CHAPTER 2: METHODOLOGY ................................................................................................ 31 Discussion of Evidence-Based Research and Methodology ..................................................... 31 Discussion of Scholarly Research Evidence Tools and Methods ............................................. 34 Stages and Tasks of the Systematic Review .......................................................................... 36 Research Questions ................................................................................................................ 36 Theoretical Framework .......................................................................................................... 37 Inclusion and Exclusion Criteria ........................................................................................... 37 Search Strategy and Criteria .................................................................................................. 38 LEADERSHIP AND EMPLOYEE MOTIVATION AND SATISFACTION 6 Quality and Relevance of Identified Studies ......................................................................... 39 Analysis and Integration of Evidence .................................................................................... 40 Interpretation and Presentation of Findings ........................................................................... 40 Presentation and Discussion of the Expert Panel ...................................................................... 41 Panel Members .................................................................................................................... 42 Panel Member’s Comments ................................................................................................... 43 Summary .................................................................................................................................. 44 CHAPTER 3: SYSTEMATIC REVIEW OF THE LITERATURE ............................................. 45 Identification and Discussion of the Theoretical Lens .......................................................... 45 Leadership: Path-goal Theory ............................................................................................... 46 Motivation: Expectancy and Self-Determination Theories ................................................... 47 Job Satisfaction: Situational Theories’ Lens ......................................................................... 49 Critical Review and Evaluation of the Literature ...................................................................... 51 Leadership Style: Impact on Employee Job Satisfaction ...................................................... 51 Leadership Style: Impact on Employee Motivation .............................................................. 83 Review of the Research Propositions ...................................................................................... 117 Summary ................................................................................................................................ 118 CHAPTER 4: CONCEPTUAL FRAMEWORK ........................................................................ 119 The Message in the Literature Review .................................................................................... 119 Conceptual Framework ........................................................................................................... 120 Summary ................................................................................................................................ 124 CHAPTER 5: ANALYSIS AND DISCUSSION OF FINDINGS ............................................. 125 Findings Pertinent to Study Purpose ....................................................................................... 125 Research Question 1: Presentation, Summary, and Analysis of the Findings ..................... 126 Research Question 2: Findings and Analysis ...................................................................... 134 LEADERSHIP AND EMPLOYEE MOTIVATION AND SATISFACTION 7 Conclusions ............................................................................................................................. 139 Alternative Perspectives .......................................................................................................... 141 Summary ................................................................................................................................ 142 CHAPTER 6: CONCLUSIONS, IMPLICATIONS, AND TRENDS ........................................ 143 Overall Conclusions ................................................................................................................ 143 Implications for Management/Practitioner .............................................................................. 146 Implications of Emerging Trends ............................................................................................ 149 Limitations and Areas for Future Research ............................................................................. 151 Summary ................................................................................................................................ 152 References .................................................................................................................................. 154 Appendix A: Expert Panel Feedback Questionnaire .................................................................. 169 Appendix B: Expert Panel Response .......................................................................................... 171 Appendix C: Summary of Included Studies ............................................................................... 177 LEADERSHIP AND EMPLOYEE MOTIVATION AND SATISFACTION 8 Table of Tables Table 1: Stages for Systematic Review, with Tasks ..................................................................... 36 Table 2: Search Strategy Database Results ................................................................................... 39 LEADERSHIP AND EMPLOYEE MOTIVATION AND SATISFACTION 9 Table of Figures Figure 1: The conceptual framework .......................................................................................... 120 LEADERSHIP AND EMPLOYEE MOTIVATION AND SATISFACTION 10 CHAPTER 1: INTRODUCTION Organizations are social systems where human resources interact with their environment and, more importantly, with their managers and supervisors. The type and level of interaction is usually dictated by the leadership style and the overall culture of the organization. It is, therefore, not surprising that organizations spend a substantial amount of time and money on enhancing the skills and competencies of managers. Organizations are constantly seeking ways to develop leaders who will guide subordinates to perform effectively in achieving organizational goals. In essence, the success or failure of an organization depends on the efficiency and effectiveness of its workforce and the guidance it receives from leadership (Avolio & Yammarino, 2002; Keskes, 2014, p. 37). The subject of leadership and leadership style has always been an important topic of study in the field of management. The definition of a leader and the approach to leadership has evolved over time from the trait era, where leaders were thought to possess specific physical attributes, to the more recent era of transformational leadership that focuses on a leader’s ability to intellectually stimulate and inspire employees. Studies in a variety of industries ranging from academia to the manufacturing industry have found that leadership style impacts multiple aspects of the organization including, employee turnover, absenteeism, motivation, and job satisfaction (Dixon & Hart, 2010; McKee, 1991). Employee motivation and job satisfaction are key aspects that impact the quality of organizational work, the reduction of turnover, the containment of costs, and the development of satisfying and productive work relations (Timmereck, 2001, p. 44). Motivation and job satisfaction are often described as two sides of the same coin. Criticism of early motivation theorists such as Maslow, Herzberg, and Alderfer, has suggested that their theories of motivation LEADERSHIP AND EMPLOYEE MOTIVATION AND SATISFACTION 11 were actually theories of satisfaction. Even with such criticism, the correlation of motivation and job satisfaction to the quality of organizational work has made a significant contribution to the understanding of organizational behavior (Graham & Messner, 1998; House & Wigdor, 1967). Motivating employees has persistently consumed the thoughts of leadership within organizations. Motivation refers to forces that energize, direct, and sustain an individual’s efforts or willingness to exert effort to achieve a goal (Bateman & Snell, 2011). Organizations implement incentive programs, corporate pep talks, and other types of administrative policies to motivate employees so as to increase job satisfaction, which can be manifested through increased confidence and loyalty, and ultimately improve the quality of employees’ outputs (Tietjen, Mark, & Myers, 1998). Job satisfaction has been defined as the degree to which people like their jobs (Bruck, Allen, & Spector, 2002. p. 338). It is the most frequently studied variable in organizational behavior research (Bruck et al., 2002). Numerous studies have examined the relationship of leadership styles and leadership effectiveness to employee job satisfaction, self-esteem, development opportunities, accomplishment, job expectation, and participation (Avolio, Bass, & Jung, 1999; Graham & Messner, 1998). In a survey of community college faculty, McKee (1991) sought to determine faculty perceptions of the leadership styles of community college presidents. Questionnaires and instruments for measuring faculty perception were used to explore the correlation between perceived leadership styles and faculty job satisfaction. The results indicated a high correlation between leadership styles and job satisfaction. McKee (1991) identified that employees are no longer motivated or satisfied with command leadership or the traditional leadership approaches used in the past, but are more receptive to leadership styles, such as participatory leadership, that LEADERSHIP AND EMPLOYEE MOTIVATION AND SATISFACTION 12 recognize and address the need for workforce interaction. Findings from studies such as these indicate that leadership style strongly impacts followers’ job satisfaction and their willingness to exert extra effort to achieve organizational goals. Researchers have measured several factors to assess their impact of on job satisfaction, including human resource practices such as compensation, benefits, and flexible working hours (Petrescu & Simmons, 2008; Verma & Sandhar, 2013) as well as organizational culture (Lund, 2003). However, the role of leadership style appears to play a far more significant role on organizational effectiveness than any of these factors (Kennerly, 1989). Background There is a strong history of insight into leadership through studies in the areas of leadership styles and behavior, employee motivation, and employee job satisfaction, and their interaction as they impact organizations. The study of organizational leadership theories reveals, among other things, the impact of leadership on employee motivation and job satisfaction. Leadership Styles and Behavior Leaders and the concept of leadership seemingly exist in every kind of organization from schools to churches, political parties, institutions, and corporations. The term leader can be defined as one who influences others to attain goals. Leaders combine the strategic vision of the organization with effective interpersonal skills to develop and implement strategies that produce results and sustainable competitive advantage (Bateman & Snell, 2011). In summary, a leader guides staff and subordinates to work effectively toward organizational goals. There is no universally accepted definition of leadership. Most definitions have basic elements or a common theme that includes group influence and goals. A “goal” is broadly defined as the relationship between an individual and a group built around some common interest LEADERSHIP AND EMPLOYEE MOTIVATION AND SATISFACTION 13 where the group behaves in a manner directed or determined by the leader (Ali, Sidlow, & Guleid, 2013; Keskes, 2014). Or, as Val and Kemp (2012) stated so succinctly, leadership is the ability to move a group toward a common goal that would not be met if a leader had not been there. Leadership, then, is about setting a direction or developing a vision of the future, accompanied by the necessary strategies for producing change to achieve that vision (Brecken, 2004). Leadership is also a process by which a person influences others to accomplish an objective and directs the organization in a way that makes it more cohesive and coherent (Avolio & Yammarino, 2002; Barling, 2014). It plays a vital role in how the organization will be inspired, guided, and corrected, and how it will provide the discipline needed to achieve desired goals and objectives (Keskes, 2014, p. 32). Leadership style is an individual’s pattern of behavior within an organization that impacts how the organization’s mission, objective, and goals are accomplished. Hersey and Blanchard (1993) see leadership style as the pattern of behaviors that leaders display during their work with and through others. These relatively stable patterns of leadership behaviors (Eagly, Johannesen, & van Engen, 2003) are the methods by which managers and supervisors engage with subordinates. A chosen method can manifest itself in many ways, such as direct rewards and recognition for job performance. Interest in the study of leadership and leadership styles has remained vibrant over the years. There is an abundance of literature in the management field on leadership, with each researcher trying to investigate characteristics of good leaders and identify which leadership style is most suited to influencing employees to work towards a shared vision and achieve organizational objectives. The debate over what exemplifies a good leader has evolved over time. More traditional, early approaches are seen as the Trait Era (1800-1940), the Behavior Era LEADERSHIP AND EMPLOYEE MOTIVATION AND SATISFACTION 14 (