Task 3 Perceived Effect
Task 3 Perceived Effect
Task 3 Perceived Effect
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Abstract: The aim of this research is to investigate the effect of As stated by Jacobsen and Andersen (2015), managing
the leadership styles on employee performance in a non-profit performance is becoming difficult due to workplace
making organization. This was a quantitative research that used a pressures, growing bureaucracy and low levels of
survey method. Data was collected from a sample of 168
employees in a non-profit making organization in Amman,
motivation.Managing employee performance effectively
Jordan. Simple random sampling was used. The SPSS and requires leaders who possess and practice the right
SMART-PLS statistical tools were used to generate descriptive leadership style (Liu et al., 2013). Several researchers and
statistics and inferential statistics. The findings revealed that scholars asserted that a good leadership style matters in an
participative leadership is the most effective leadership style. organization (e.g.; Vandenabeele et al., 2014). Different
However, the results revealed that autocratic and laissez faire leadership styles such as transactional leadership and
leadership styles were not preferred. The findings supported the
results from some earlier studies and bring out several new ideas
transformational leadership have been identified in the
such as the importance of participative leadership style. Based on literature (House et al., 2004). Lewin et al. (1939) identified
the findings of this study, leaders should adopt more participative three leadership styles. The leadership styles identified by
leadership style in non-profit organizations. The findings have Lewin (1939) were autocratic (authoritarian), democratic
also significantly contributed to the advancement of knowledge in (participative) and laissez-faire (delegative) styles. There
employee performance. The paper's primary contribution is that it are inconsistencies in the results of past studies on which
provides an understanding that most effective leadership style in a
non-profit organization.
style is the most effective. A study by Iqbal et al. (2015)
concluded that the autocratic leadership is useful in the
Keywords: Employee's performance, democratic, autocratic,
short term, democratic leadership style is useful in all time
liassez-faire, participative
horizon and participative leadership style is most useful in
I. INTRODUCTION long term and effect on employees is positive. Other past
research has shown that participative leadership is highly
This study is based on the United Nations Relief and Works effective and increases employees‟ motivation, and job
Agency for Palestine Refugees (UNRWA) in Jordan. The performance (Huang, Iun, Liu, and Gong, 2010). However,
United Nations Relief and Works Agency for Palestine Adeyemi (2010 found that job performance was found to be
Refugees in the Near East (UNRWA) that was created in better in schools having principals using autocratic
1949 is a relief and human development agency which leadership style than in schools having principals using
supports more than 5 million registered Palestinian refugees, democratic or laissez-faire leadership styles. Somech (2006)
and their patrilineal descendants (UNRWA, 2018). UNRWA found that participative leadership style was positively
Headquarters are located in Amman and in Gaza. The associated with team reflection, which in turn fostered team
UNRWA operate one of the largest school systems in the innovation; however, this leadership style decreased team
Middle East, teaching nearly half a million children in over in-role performance. Furthermore, a study by Li, Liu and
700 schools. The UNRWA is one of the largest United Luo (2018) found that team leaders high in locomotion
Nations programmes, with over 30,000 personnel working orientation prefer directive leadership while team leaders
across five areas of operations, and is unique in that it high in assessment orientation prefer participative
delivers services directly to beneficiaries. In addition, leadership to „get the best‟.
UNRWA deliver basic health services through a network of In view of the inconsistent results from past studies, it is
primary health care facilities and mobile clinics. The worth undertaking this study in a non-profit making
UNRWA also provide social protection services, basic food organization. Although the influence of leadership style on
supplies and cash subsidies, as well as emergency cash job performance has been well established but there is a
grants and adequate shelter and income-generating paucity of research that has empirically tested the
opportunities to refugees (UNRWA, 2018).In today‟s relationship between autocratic, participative and laissez
globalized environment, managing employee performance faire style of leadership towards employee performance in a
effectively has become important (McGurk, 2011). nonprofit making organization such as UNRWA. Most of
Revised Version Manuscript Received on Janaury19 2019.
the past studies on the relationship between leadership
Nadia Abdul Kareem A. Almarakshi , Asia Pacific University of styles and employees‟ performance has been done in profit
Technology and Innovation, 57000 Kuala Lumpur making organizations.
Jugindar Singh Kartar Singh, Asia Pacific University of Technology
and Innovation, 57000 Kuala Lumpur
Janitha Kularajasingam ,Asia Pacific University of Technology and
Innovation, 57000 Kuala Lumpur
Published By:
Blue Eyes Intelligence Engineering
Retrieval Number: ES2190017519/19©BEIESP 483 & Sciences Publication
The perceived effective leadership style and employee performance in a non-profit making organization. A
quantitative study in amman, jordan
Therefore, a study of these styles of leadership styles is Participative leadership refers to leadership styles where the
important for leaders in non-profit organizations. leader or supervisor invites and encourages employees to
take a certain amount of responsibility in the workplace
(Sauer 2011). Through influence and encouragement, the
II. LITERATURE REVIEW leader using participative leadership style facilitate
employees‟ involvement in the decision-making process
A. Employee Performance
(Amabile et al., 2004). As explained by Yukl (2010),
Many authors have defined employees‟ job performance and participative leadership involves the use of various decision
the related parameters (Campbell, 1990; Borman and procedures that allow other people some influence over the
Motowidlo, 1997). Motowildo et al. (1997) stated that job leader‟s decisions. The aspects of participative leadership
performance is the aggregated value to the organization of include consultation, joint decision making, power sharing,
the discrete behavioural episodes that an individual performs decentralization, empowerment, and democratic
over a standard interval of time. According to Rivai (2004), management. There are several studies done on
employee's performance refers to the success or the overall participative leadership but the various researchers and
outcomes of an employee during a particular period that is reviewers did not agree in their conclusions, but they all
compared with work standards, criteria and target. noted the lack of consistent strong results in the research
Researchers have further asserted that employee (Yukl, 2010). Results from past studies suggest that
performance refers to an employees work achievement after participation can be effective in some situations. Yukl
exerting required effort on the job (Karakas, 2010). Scholars (2010) stated that studies that used questionnaire data
have conceptualized performance as a multidimensional usually found positive effects for participation, whereas
construct that is difficult to define (Pahos and Galanaki, studies with independent measures of outcome variables
2018). Several other scholars stated that performance is a had results that were weaker and less consistent.
multidimensional and a multicomponent concept and the Huang et al. (2010) found a positive relationship between
behavioural engagements can be distinguished from the participative leadership behaviors and employees' task
expected outcomes (e.g.; Borman, & Motowidlo, 1993) performance and organizational citizenship behavior toward
Campbell (1990) coming from the psychological perspective organization. Results of a study by Yukongdi (2010)
stated that the outcome aspect is the consequence of an showed that the most preferred style of leadership for
employee‟s behaviour and behaviour is the action employees employees was the consultative manager, followed by
exhibit. Researchers have paid attention to the predictors of participative manager. Another study by Iqbal, Anwar, and
performance and indicated that employee performance Haider (2015) found that participative leadership style is
encompasses financial or non-financial outcome of the most useful in long term and effect on employees was
employees (e.g. (Campbell, 1990; Lee and Donohue, 2012). positive. A study by Somech, and Wenderow (2006)
Pradhan and Jena (2017) developed a heuristic framework of revealed that that although the impact of directive
job performance and placed relative importance on three leadership on teachers' performance was contingent in
performance components namely task, adaptive, and nature, the positive effect of participative leadership on
contextual performance. Therefore, the dimensions of job their performance was above and beyond the specific
performance can differ among jobs and there are a high conditions studied. From team leadership perspective,
number of measures as indicators of employees‟ job Somech (2006) found that participative leadership style was
performance. Several researchers have focussed on the positively associated with team reflection, which in turn
relationship between leadership style and job performance of fostered team innovation; however, this leadership style
employees but the results were not consistent. Vigoda-Gadot decreased team in-role performance. Huang et al., (2006)
(2007) found a direct relationship between leadership and also found that participative leadership behavior tended to
performance. The results a study by Yeh and Hong (2012) make short-tenure employees feel competent and more
showed that leadership type had a positive influence on committed to an organization. However, participative
organizational commitment and organizational commitment leadership behavior was not significantly related to
positively and significantly affected job performance. organizational commitment for long-tenure employees
Similarly, a study by Ojokuku, et al., (2012) also found that (Huang et al., 2006). Therefore, as concluded by Yukl
leadership style dimensions jointly predicted organizational (2010), participative leadership sometimes results in higher
performance, which counted for 23% variance of satisfaction, effort, and performance, and at other times it
performance. However, a study by Lok, and Crawford does not. The following hypothesis was formulated:
(2004) found that leadership style had a negative effect on H1. Participative leadership is positively related to
job satisfaction and past studies have shown that job employee performance.
satisfaction is related to job performance. Scholars have also
looked at the different leadership styles such as transactional, C. Autocratic Leadership
transformational and authentic leadership styles. Several The autocratic leaders make decisions without consulting or
studies found a significant relationship between participation of employees and such leaders normally
transformational leadership and job performance (e.g.; establish regulations and maintain a formal relationship
Obiwuru et al., 2011). The study by Obiwuru et al. (2011) with the employees (Maloş 2012).
concluded that transactional leadership style was more
appropriate in improving job performance.
B. Participative Leadership
Published By:
Blue Eyes Intelligence Engineering
Retrieval Number: ES2190017519/19©BEIESP 484 & Sciences Publication
International Journal of Recent Technology and Engineering (IJRTE)
ISSN: 2277-3878, Volume-7 Issue-5S, January 2019
In autocratic leadership, the employees are willing to follow Sandling (2015) stated that this style of leadership can be
and learn how to do the job more efficiently from the leader effective when the followers are highly motivated,
(Northouse, 2012). These autocratic leaders are the knowledgeable and skilled and whom the leader trust. Past
controllers and followers have to execute the tasks in the studies also argued that laissez-faire leadership may support
manner specified by their leader (Northouse, 2012). an environment that facilitates innovation (e.g. Ryan and
As explained by Northhouse (2012), the leaders formal Tipu, 2013). In addition, Theodosiou and Katsikea (2007)
position and authority authorizes them to use reward or stated that a laissez-faire leadership improves the
legitimate power to influence the employees. The autocratic confidence of subordinates and this may encourage
leadership style does not support employees‟ development in innovation, independence and entrepreneurial inclination.
terms of creativity and decision making (Sauer 2011. From Therefore, the possible outcomes of laissez-faire leadership,
the positive viewpoint, the autocratic leaders give clear and could be positive or negative.
short instructions to their subordinates to help them perform There were several studies done on the relationship between
their tasks efficiently (Cunningham, et al., 2015). Several laissez faire leadership and employee performance but the
studies were done on the relationship between autocratic results were not consistent. Yukl (2010) stated that teams
leadership employee performances but the results were not which are not led may encounter difficulties and they may
consistent. Adeyemi (2010) found that job performance have to compensate for the missing leadership in order to
better in organizations with leaders using autocratic reach goals. Rowold (2015) looked at team heterogeneity
leadership style than in organizations with leaders using and found that culturally heterogeneous work teams can
democratic or laissez-faire leadership styles. Autocratic perform well, even if the leader is practicing laissez‐ faire
leadership can foster team psychological safety when team style of leadership. According to Rowold (2015), the
members accept the hierarchy within the team. De Hoogh et heterogeneous teams compensate for missing leadership
al. (2015) looked at the team members‟ acceptance of the when leadership and guidance is not available from the
hierarchy within the team. De Hoogh et al. (2015) found that leader. Another study by Sadeghi and Pihie (2012), showed
when team power struggles were low, autocratic leadership that a combination of transformational, transactional, and
was positively related to team performance but when team laissez-faire leadership styles were predictors of leadership
power struggles were high, autocratic leadership was effectiveness. Laissez-faire leadership was one of the
negatively related to team performance. A study by Puni et significant predictors of leadership effectiveness. A study
al. (2014) found that autocratic leadership style had a very by Adeyemi (2010) found that laissez faire leadership style
low impact on job performance and this is an indication that cannot improve job performance and the use of the laissez-
autocratic style of leadership is inappropriate because it faire leadership style should be discouraged among school
results in dissatisfaction and low motivation. A study by principals. Koech and Namusonge (2012) investigated the
Akor (2014) found that an autocratic leadership style does effects of leadership styles on performance and found that
not significantly influence the job performance of academic laissez-faire leadership style was not significantly correlated
librarians and the level of performance of the academic to performance. Similarly, a study by Pradeep and Prabhu
librarians was low. Geothals et al. (2004) asserted that (2011) also revealed that laissez‐ faire leadership had a
autocratic leadership decreases job performance on complex negative relationship with the employee performance.
tasks and may affect the creativity The following hypothesis Based on the past research findings discussed above, the
was formulated for testing: following hypothesis was formulated for testing in the
H2. Autocratic leadership style is positively related to present study.
employee performance. H3: Laissez Faire leadership style is positively related to
Laissez Faire Leadership employee performance
Laissez-faire leadership has been defined as the absence of
leadership (Bass and Avolio, 1990). According to Hartog et III. MATERIALS AND METHOD
al., (1997), leaders using the passive laissez-faire leadership
A. Research Design
style avoid decision making and supervisory responsibilities.
As stated by Hartog (1997), there is a negative relationship This was a causal research to study cause-and-effect
between leaders‟ scores on laissez-faire leadership and their relationships of the variables of this study. The positivism
scores on collaborating with others. The laissez-faire research philosophy of this research depends on
leadership style has been linked to negative outcomes such quantifiable observations that lead to statistical analyses
as low motivation (e.g. Judge and Piccolo, 2004; Skogstad et (Saunders et al., 2012). This positivist study adopted
al., 2007). Researchers have argued that the laissez-faire adopted a deductive approach and hypothesis were tested.
leadership style could be a destructive form of leadership The quantitative study was a cross sectional survey. The
and result in negative outcomes such as workplace stress data was collected by using questionnaires that were
(Skogstad et al., 2007). Scholars and past researchers have distributed personally by hand. The study population were
viewed laissez faire leadership style as ineffective whereas employees of UNRWA and simple random sampling was
most research found that transformational leadership is more used. The sample consisted of 168 employees of UNRWA
effective (e.g. Judge and Piccolo, 2004). However, some in Jordan. The data collected was edited and coded before
studies found positive outcomes of laissez-faire leadership in being entered in Excel and SPSS.
employees‟ innovation propensity (e.g. Ryan and Tipu,
2013). As stated by Yukl (2010), leaders will have a greater
effect on skilled employees who need low supervision.
Published By:
Blue Eyes Intelligence Engineering
Retrieval Number: ES2190017519/19©BEIESP 485 & Sciences Publication
The perceived effective leadership style and employee performance in a non-profit making organization. A
quantitative study in amman, jordan
Data analysis was based on descriptive and inferential and Bougie 2010). The Package for Social Sciences (SPSS)
statistics that were generated using SPSS and SmartPLS 2. version 22 and Smart Partial Least Square (PLS) Version
2.0 were used. A two-way approach was adopted and in the
B. Sampling Technique and Sample Size
first stage, the measurement model was tested to assess the
Simple random sampling was used and a sampling frame validity and reliability of items using convergent validity,
was created. The sampling frame of this research focused on discriminant validity and reliability analysis. Subsequently,
the employees of UNRWA in Jordan. The researcher set the the hypothesized relationship was tested. Bootstrapping
sample size of 200 respondents and distributed the method (500 resamples) was used to determine the
questionnaire by hand among the UNRWA staff in Jordan. significance levels for loadings, weights and path
For models containing five or fewer constructs, Hair et al. coefficients. Various statistical methods and techniques
(2010) suggested that the minimum sample size should be were used to present the descriptive and other statistics.
100. To calculate the sample size, Tabachnick and Fidell
(2013) proposed a formula “50 + 8m” where “m” is the IV. FINDINGS
number of variables. In this study, a total of 168 staff
completed and returned the questionnaires. A. Demographic profiles of the respondents
The respondents included 57% (n=95) female and 43%
C. Instrumentation
(n=73) male. The respondents age included 66% (n=111)
The questionnaire was divided into two sections. The between the age range of 20 to 45 years, and 34% (n=57)
demographic questions were included in section A (Gender, above the age range of 45 years. In terms of qualification,
Age, Work experience and Education Level). In section B, there 41 postgraduates, 96 were degree holders and 31
the questions covered the dependent variable and the people had either a Diploma/Certificate or lower
independent variables. The fixed alternative questions qualification. In terms of working experience, 13
required the respondents to choose the best answer based on respondents worked for less than 5 years, 37 worked
a five- point Likert-type scale. The questions were adopted between 5 to 10 years and 118 respondents worked more
from past studies but translated into the Arabic language than 10 years.
because the employees of UNRWA were more conversant in
the Arabic language. The questionnaires were printed on B. Descriptive Statistics and Normality
standard A4 size paper and distributed by hand. A pilot test Kurtosis and skewness methods are used to assess the
was done to check the understanding of the questions by the normality of data distribution. (Hair et al., 2010). The
respondents and some questions that were ambiguous or values for skewness is between the ranges of .226 to -.935
misleading were amended (Saunders et al., 2012). A pre- and the values for kurtosis are between the ranges of -.068
testing of the questionnaire with a sample of twenty to -.801. Therefore, the values of skewness and kurtosis
respondents detected some weaknesses in the wording, values are within +2 and -2 standard deviations from its
layout and design of the questionnaire. Ambiguous, unclear mean (Sekaran and Bougie, 2010). The mean of all the
and confusing questions were reviewed and rectified variables was above 2.3 and the standard deviation is low.
accordingly. C. Reliability
D. Data Collection Reliability was measured based on Cronbach‟s Alpha which
For this research, self-administered questionnaires were used is a reliability coefficient that indicates how well the items
with a covering letter attached. The questionnaire was in a set are positively correlated to one another (Sekaran
delivered direct to the respondents because they can be and Bougie, 2010). The reliability value should be 0.6 and
reached personally. The target respondents were given one above and as stated by Sekaran and Bougie (2010), the
week to respond. After one week, the questionaries‟ were closer Cronbach‟s Alpha is to 1.0, the higher the reliability.
collected. The response rate was very good and 168 Based on Table 2, the result showed that the rho values for
questionnaires were collected at the end of the first month. each construct are above 0.75 and below 0.93. For a good
Analysis of the primary data collected in numerical form reliability, the reliability coefficient or Cronbach‟s alpha
include the calculation of descriptive statistics such as should be .7 or higher (Hair et al., 2010). The reliability
calculation of frequencies and inferential statistics. The result of 0.909, 0.914, 0.835 and 0.738 are acceptable and
descriptive statistics was used to acquire a feel for the data this indicates that the questionnaire designed for this study
by checking the central tendency and the dispersion (Sekaran was reliable, and the collected data were reliable
Table 1: Descriptive Statistics
Minimum Maximum Mean Std. Deviation Skewness Kurtosis
Statistic Statistic Statistic Statistic Statistic Std. Error Statistic Std. Error
Democratic Style 1.14 5.00 3.7727 .80384 -.835 .187 .366 .373
Autocratic Style 1.00 5.00 2.6935 .96307 .226 .187 -.489- .373
Laissez Faire Style 1.00 4.33 2.3750 .72985 -.108 .187 -.206- .373
Performance 1.00 5.00 4.2620 .52087 -.935 .187 1.674 .373
Published By:
Blue Eyes Intelligence Engineering
Retrieval Number: ES2190017519/19©BEIESP 486 & Sciences Publication
International Journal of Recent Technology and Engineering (IJRTE)
ISSN: 2277-3878, Volume-7 Issue-5S, January 2019
Autocratic 0.827
Democratic -0.582 0.836
Performance -0.34 0.386 0.775
Laissez Faire 0.353 -0.253 -0.356 0.809
F. Significance and Relevance of Path Coefficients hypothesis H3 is not supported. Thus, only democratic
The R square of 0.226 is an indication of the quality of the leadership gave a significant and positive impact to the job
model and explains the portion of the variance of the performance of employees.
independent variables, which is explained by the structural
model. Bootstrapping technique with sample size of 500 was
done to test the significance of the relations. Figure 1 and
Table 4 shows the Smart-PLS screen with the correlation
coefficient values and the t-statistics. As stated in Table 4,
the figure shows that only two values of the relations are
above the referenced value of 1.96. In Table 4, the path
coefficient shows the strength of relationship between the
exogenous and endogenous variables (Hair et al., 2010). The
standardized regression value of -.094 shows an inverse
relationship between autocratic leadership and job
performance and the effect is insignificant (p>0.05). Thus,
the hypothesis H1 is not supported. The standardized
regression value of .267 shows a positive and significant
relationship between democratic leadership and job
performance (p<0.05). Thus, the hypothesis H2 is supported.
The standardized regression value of -.255 shows an inverse
relationship between Laissez Faire leadership style and job
performance and the effect is significant (p>0.05). Thus, the
Published By:
Blue Eyes Intelligence Engineering
Retrieval Number: ES2190017519/19©BEIESP 487 & Sciences Publication
The perceived effective leadership style and employee performance in a non-profit making organization. A
quantitative study in amman, jordan
Published By:
Blue Eyes Intelligence Engineering
Retrieval Number: ES2190017519/19©BEIESP 488 & Sciences Publication
International Journal of Recent Technology and Engineering (IJRTE)
ISSN: 2277-3878, Volume-7 Issue-5S, January 2019
This indicates that autocratic style of leadership is done on other locations or countries. The sample size was
inappropriate because it results in low morale and low also small and may not be sufficient to generalize the
motivation. However, autocratic leadership may be useful in results. Future studies should look at bigger samples to
some contexts and leads to better decisions when the leader improve the results. Future studies should also look at the
is an expert in the job or subject. As stated by Geothals et al. situational factors such as subordinate ability, organization
(2004), autocratic leadership may be most appropriate in of the work and resources and support.
jobs in which employees has low level of skills and time is
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Blue Eyes Intelligence Engineering
Retrieval Number: ES2190017519/19©BEIESP 489 & Sciences Publication
The perceived effective leadership style and employee performance in a non-profit making organization. A
quantitative study in amman, jordan
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