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LEADERSHIP STYLES AND ORGANIZATIONAL PERFORMANCE: THEIMPACTOFGENDER .
Ngu Nguok Ying
Corporate Master in Business Administration
2013
Pusat Khidmat Maklumat Akadcmik UNlVERSm MALAYSIA SARAWAK
P.KHIDMAT MAKLUMAT AKADEMIK
1IIIIIIIIIijifilllllllili1000246885
LEADERSHIP STYLES AND ORGANIZATIONAL PERFORMANCE: THE IMPACT OF GENDER
By
Ngu Nguok Ying (11031927)
A Research Paper Submitted in Partial Fulfillment of the Requirement for the Degree of
Corporate Master in Business Administration
Faculty of Economics and Business UNIVERSITI MALAYSIA SARAWAK
(2013)
APPROVAL PAGE
I certified that I have supervised and read this study and in my opinion it conforms to
acceptable standards of scholarly presentation and is fully adequate in scope and quality as a
research paper for degree of Corporate Master in Business Administration.
Dr. 10 May Chiun
This research paper was submitted to the Faculty of Economics and Business, UNIMAS and
is accepted as partial fulfillment of the requirements for the degree of Corporate Master in
Business Administration.
Professor Dr. Mohammad Affendy Arip Dean, Faculty of Economics and Business UNIMAS
ii
STATEMENT OF ORIGINALITY
The work described in this Research paper, entitled
"LEADERSHIP STYLES AND ORGANIZATIONAL PERFORMANCE: THE
IMPACT OF GENDER"
is to the best of the author's knowledge that of the author except
where due reference is made.
NOV NOVOK YINO 11031927
,iii
ABSTRACT
LEADERSHIP STYLES AND ORGANIZATIONAL PERFORMANCE: THE IMPACT
OF GENDER
By
NGU NGUOK YING
(The general objective of this study was to examine the gender differences in leadership
behaviour and investigate the impacts of leadership behaviour on organizational performance
of Sibu-based companies. While researchers have discovered the relationship between the • leadership behaviour and organizational performance and understand about the impact of the
leadership behaviour on the organizational performance of Sibu-based companies. In addition,
researches also have discovered gender difference in leadership behaviour, the possible
reasons and explanation for the fmdings. Hence, the present research differs from the previous
studies where a comprehensive study's framework has allowed for a better understanding on
these differences and relationship) A total of 200 sets of questionnaires were distributed to
the respondents of the selected companies in Sibu, Sarawak, 70 % of them, which are 140 sets
have been filled up and returned. There were eight hypotheses tested in this research. The
rmding revealed that there is no gender difference in leadership behaviour and there is
positive relationship between leadership behaviour and organizational performance. This
study is useful for Sibu-based companies to study gender differences in leadership behaviour
and relationship between leadership behaviour and organizational performance that aim at
helping organizations to have better understanding the gender differences, in tum, addressing
them and improving the organizational performance later.
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I
I
ABSTRAK
GAYA KEPIMPINAN DAN PRESTASI ORGANISASI: KESAN JANTINA
Oleh
NGU NGUOK YING
Objektif umum kajian ini adalah untuk mengkaji perbezaan tabiat kepimpinan antanra jantina
dan kesan tabiat kepimpinan terhadap prestasi organisasi di kawasan sibu. Penyelidik telah
menemui hubungan antara tabiat kepimpinan dan prestasi organisasi, dan mengetahui kesan
tabiat kepimpinan terhadap prestasi organisasi di kawasan Sibu. Oi samping itu, para
penyelidik turnt menemui bahawa perbezaan tabiat kepimpinan antara jantina" sebab dan
penjelasan yang berkemungkinan bagi hasil penyiasatan turut ditemui. Oleh itu, kajian ini
berbeza daripada kajian-kajian dulu di mana rangka kerja kajian teliti ditunjukkan bagi
pemahaman terhadap perhubungan dan perbezaan tersebut yang lebih lanjut. Sebanyak 200
borang soal selidik diedarkan kepada respond en di syarikat-syarikat terletak di kawasan Sibu
yang dipilih, sebanyak 70 peratus iaitu 140 borang soal selidik telah diisi, dan dikumpul.
Terdapat 8 hipotesis diuji dalam kajian ini. Keputusan menunjukkan bahawa tiada perbezaan
tabiat kepimpinan antara jantina dan terdapat hubungan positif antara tabiat kepimpinan dan
prestasi organisasi. Kajian ini berguna bagi syarikat-syarikat di kawasan Sibu untuk mengkaji
tentang perbezaan tabiat kepimpinan antara jantina dan kesan tabiat kepimpinan terhadap
prestasi organisasi yang boleh membantu organisasi untuk mengetahui lebih mendalam dan
menyeluruh terhadap perbezaan jantina, dan seterusnya memperbaiki prestasi organisasi.
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ACKNOWLEDGEMENT
During the course of this project, I have received assistance of many people to whom I
am very grateful.
First and foremost, I want to thank to my supervisor, Dr. Lo May Chi un, for giving me
her support and advice throughout this project. Her patience and guidance throughout my
thesis is greatly appreciated.
A word of thanks to my beloved family and girlfriend for their love, care and supports
during my two years study in VNIMAS-Sibu branch for this CMBA course. I thank them with
all my sincere heart for their patience.
I would also like to especially thank to all my friends and course mates, who have
provided me with moral support and encouragement. Their support and motivation were
invaluable to me. Besides that, I would like to thank my colleagues, who have helped me a lot
in questionnaire distribution and questionnaire filling up.
I also wish to say thanks to all respondents who have been very co-operative and
bonest in their answering the questionnaires even though they are busy with their works
during that time.
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r Pusat Khidmat Maklumat Akademik UNlVERSm MALAYSIA SARAWAK
TABLE OF CONTENTS
Content
Approval Page
Statement ofOriginality
Abstract
Abstrak
Acknowledgement
Table of Contents
List ofTables
List of Figure
CHAFfER 1: INTRODUCTION
1.1 Background
1.1 .1 The Malaysia Scenario
1.2 Problem Statement
1.3 Research Objectives
1.4 Research Questions
1.5 Defmition of Key Tenus
1.5.1 Leadership Behaviour
1.5.2 Leadership Style
1.5.2.1 Employee-oriented Leadership Style
1.5.2.2 Production-oriented Leadership Style
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Page Number
11
11l
IV
v
VI
Vll
XIV
XVll
2
5
6
7
7
7
7
8
8
1
1.5.2.3 Change-oriented Leadership Style
l.5.3 Decision-making Style
l.5.3.l Sensing
1.5.3.2 Intuition
1.5.3.3 Thinking
1.5.3.4 Feeling
l.5.4 Motivation Profile
l.5.4.l Need for Achievement
1.5.4.2 Need for Affiliation
1.5.4.3 Need for Power
1.5.5 Organizational Performance
l.6 Significance of Study
l.7 Scope of Study
I, l.8 Organization of Chapters
CHAPTER 2: LITERATURE REVIEW
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
Introduction
Gender Differences in Leadership Behaviour
Leadership Behaviour
Leadership Style
Decision-making Style
Motivation Profile
Organizational Performance
Leadership Behaviour and Organizational
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8
9
9
10
10
11
11
11
12
12
12
13
14
15
16
16
20
23
26
28
29
30
Performance
2.9 Theoretical Framework 33
2.9.1 Gap in Literature 34
2.8.2 Description of Variables 34
2.10 Development of Hypotheses 35
2.10.1 Leadership Behaviour and Genders 35
2.10.2 Leadership Behaviour and Organizational 36
Performance
2.11 Conclusion 37
CHAPTER 3: RESEARCH METHODOLOGY
3.1 Introduction 39
3.2 Research Site 39
3.3 Research Design 41
3.3.1 Sample 41
3.3.2 Data Collection Procedure 42
3.4 Research Questionnaire 43
3.5 Measures 45
3.6 Statistical Analyses 47
3.6.l Descriptive Statistic 47
3.6.2 Validity Analysis 48
3.6.3 Reliability Analysis 49
3.6.4 Independent t-test 50
3.6.5 Pearson's Correlation Coefficient 51
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,.. ,
3.7 Conclusion 53
CHAPTER 4: FINDINGS
4.1 Introduction 54
4.2 Frequency Distribution 54
4.3 Respondent Demographic 55
4.4 Descriptive Analysis 58
4.5 Reliability Analysis 65
4.6 Hypotheses Testing via Independent t-test 67
4.6.1 Independent t-test between Male and Female 67
Leaders in Leadership Behaviour
4.6.2 Independent t-test between Male and Female 68
Leaders in Leadership Styles
4.6.2.1 Independent t-test between Male and 69
Female Leaders in Employee-oriented
Leadership Style
4.6.2.2 Independent t-test between Male and 70 I I
Female Leaders In Production
~ oriented Leadership Style
I
4.6.2.3 Independent t-test between Male and 71 I
Female Leaders in Change-oriented
Leadership Style I
4.6.3 Independent t-test between Male and Female 72
Leaders in Decision-making Styles
x
4.6.3.1 Independent t-test between Male and 73
Female Leaders in Sensing Type of
Decision-making style
4.6.3.2 Independent t-test between Male and 74
Female Leaders in Intuition Type of
Decision-making Style
4.6.3.3 Independent t-test between Male and 75
Female Leaders in Thinking Type of
Decision-making Style
4.6.3.4 Independent t-test between Male and 76
Female Leaders in Feeling Type of
Decision-making Style
4.6.4 Independent t-test between Male and Female 77
Leaders in Motivation Profiles
4.6.4.1 Independent t-test between Male and 78
Female Leaders 10 Need for
Achievement
4.6.4.2 Independent t-test between Male and 79
Female Leaders 10 Need for
Affiliation
4.6.4.3 Independent t-test between Male and 80
Female Leaders in Need for Power
4.7 Hypotheses Testing via Pearson Correlation 81
4.7.1 Pearson Correlation between Leadership 81
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Behaviour and Organizational Perfonnance
4.7.1.1 Pearson Correlation between 82
Leadership Styles and Organizational
Perfonnance
4.7.1.2 Pearson Correlation between 83
Decision-making Styles and
Organizational Perfonnance
4.7.1.3 Pearson Correlation between 84
Motivation Profiles and
Organizational Perfonnance
4.8 Findings of Hypotheses Testing 84
4.9 Conclusion 88
CHAPTER 5: DISCUSSION AND CONCLUSION
5.1 Introduction 90
5.2 The Backdrop 90
5.3 Discussion 93
5.3.1 Gender Differences in Leadership Behaviour 93
5.3.2 Gender Differences in Leadership Styles 94
5.3.3 Gender Differences in Decision-making Styles 95
5.3.4 Gender Differences in Motivation Profiles 95
5.3.5 Leadership Behaviour and Organization 96
Perfonnance
5.3.6 Leadership Styles and Organization 97
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Performance
5.3.7 Decision-making Styles and Organization 98
Performance
5.3.8 Motivation Profiles and Organization 99
Performance
5.4 Implications 100
5.4.1 Theoretical Perspective 100
5.4.2 Practical Perspective 101
5.5 Potential Limitations 102
5.6 Future Research 103 I
5.7 Conclusion 104
REFERENCES lOS
APPENDIX A: SURVEY QUESTIONNAIRE 142
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LIST OF TABLES
Table Page
3.1 Summary of Questions for Each Variable 45
3.2 Interpretation of Size of Correlation Coefficient 52
4.1 Frequency Distribution of Survey Response 55
4.2 Respondents' Demographics 57
4.3 Mean and Standard Deviation Value for Descriptive 59
Analysis
4.4 Reliability Analysis Result 65
4.5 Descriptive Table of Leadership Behaviour 67
4.6 Independent t-test Table of Leadership Behaviour 67
4.7 Descriptive Table of Leadership Styles 68
4.8 Independent t-test Table of Leadership Styles 68
4.9 Descriptive Table of Employee-oriented Leadership 69
Style
4.10 Independent t-test Table of Employee-oriented 69
Leadership Style
4.11 Descriptive Table of Production-oriented Leadership 70
Style
4.12 Independent t-test Table of Production-oriented 70
Leadership Style
4.13 Descriptive Table of Change-oriented Leadership Style 71
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4.14 Independent t-test Table of Change-oriented 71
Leadership Style
4.15 Descriptive Table of Decision-making Styles 72
4.16 Independent t-test Table of Decision-making Style 72
4.17 Descriptive Table of Sensing Type of Decision-making 73
Style
4.18 Independent t-test Table of Sensing Type of Decision 73
making Style
4.19 Descriptive Table of Intuition Type of Decision 74
making Style
4.20 Independent t-test Table of Intuition Type of Decision 74
making Style
4.21 Descriptive Table of Thinking Type of Decision 75
making Style
4.22 Independent t-test Table of Thinking Type of Decision 75
making Style
4.23 Descriptive Table of Feeling Type of Decision-making 76
Style
4.24 Independent t-test Table of Feeling Type of Decision 76
making Style
4.25 Descriptive Table of Motivation Profiles 77
4.26 Independent t-test Table of Motivation Profiles 77
4.27 Descriptive Table ofNeed for Achievement 78
4.28 Independent t-test Table of Need for Achievement 78
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4.29
4.30
4.31
4.32
4.33
4.34
4.35
4.36
4.37
Descriptive Table of Need for Affiliation 79
Independent t-test Table of Need for Affiliation 79
Descriptive Table of Need for Power 80
Independent t-test Table ofNeed for Power 80
Table of Correlation Analysis-Pearson Correlation 81
Matrix of Leadership Behaviour and Organizational
Perfonnance
Table of Correlation
Matrix of Leadership
Perfonnance
Table of Correlation
Analysis-Pearson Correlation 82
Styles and Organizational
Analysis-Pearson Correlation 83
Matrix of Decision-making Styles and Organizational
Perfonnance
Table of Correlation Analysis-Pearson Correlation 84
Matrix of Motivation Profiles and Organizational
Perfonnance
Summary of Results of Hypotheses Testing 88
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LIST OF FIGURE
Figure Page
332.1 Theoretical Framework
xvii
I
CHAPTER 1
INTRODUCTION
1.1 Background
In this competitive and rapid changing business environment, the organization requires
capable leaders to make changes and cope with the changes in order to survive and obtain the
competitive advantage. In fact, definition of leadership changes over the time, where change
in employee needs cause relationship between leaders and their subordinates undergoes
changes also (Pradeep & Prabhu, 20 II ).
Furthermore, there are increasing numbers of female in the labour workforce. It is
supported by Moran (1992), where women consist of huge portion of workforce. In addition
to this, addressing different types of leadership style becomes increasingly significant to the
organizations nowadays.
It is undeniable that women participation in labour workforce has increased. Abidin,
Rashid and lusoff (2009) revealed that Malaysian women represent 44.5 % of the workforce
and academically qualified same as male; however, they are still under-represented at senior
management positions. This shows the difficulty of the women in making their career
advancement. However, the gender difference in leader effectiveness arisen.
Folkman (2012) revealed that female are rated more positively than males on an
overall leadership effectiveness index. According to Jack Zenger, CEO and Co-founder of
Zenger Folkman, women are still underrepresented at senior level of management and it is a
public-known fact while the data recommends that effectiveness of the leadership team will
improve higher by adding more women (Folkman. 2012).
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According to Hicks-Clarke and Bes (2004), gender diversity does have direct
relationship with the organization's "financial success". It will also positively influence team
process outcomes (Kochan et aI., 2003). In addition, the effective diversity management can
help Company to obtain full creativity and also enjoy the benefits from diversity.
Harisis and Kleiner (1993) revealed that ineffective diversity management would lead
to respective high cost in terms of lost productivity, high turnover rate, high absenteeism rate
and increase of industrial conflict cases . All of these include related costs can be minimized if
the diversity is effectively managed (Cox & Blake, 1991).
According to Eric Labaye, managing director of McKinsey & Company, it is obvious
that women shall be forefront of the scene of economic and social since they share a huge
portions of global talent pool, and it is not an issue of fairness but to ensure the best
employees are brought together to cope with the challenges faced (McKinsey & Company,
2007).
1.1.1 The Malaysia Scenario
Women participation in Malaysia workforce has increased as compared to the past and
they contribute significantly to the nation economy. According to Chin (2011), urban female
in labour force participation is 45.8 per cent in year 2009; it is 14.2 % higher than female
labour force participation in 1980, which is 31.6 %. In addition, the female labours in the age
group of 25-29 and age group of 30-34 also increase from 46 % in 1980 to 61.8 % in 2009
and 43.8 % in 1980 to 57.8 % in 2009 accordingly.
In reality the female labour participation does not show significant improvement.
According to the World Bank's Malaysian Economic Monitor Report in April 2012, women
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ur participation rate is only 46 % and it is less than hal f of the total numbers of women in
category of working age involved in labour participation (Merican, 2012). Besides that,
women participation at managerial position is still very limited. This is supported by
Porterfield and Kleiner (2005), women nowadays play important roles in industrial countries
but they are still underrepresented in managerial positions.
In Malaysia, government has revealed concern on women's development and make it
the priority where women are empowered to enhance their contribution to the economy
through Malaysia lOth Plan; even though, Malaysia is still in progress to develop the women
orld'orce. Prime minister also appeals to the listed corporations in order to reveal their
policies and achievements that can advance women in employment; so that there will be more
Malaysian companies to adopt and implement policies to support employment of women
(Talent Corp Malaysia, 2012).
The government revealed their hard work in women employment. In addition, the
IJC)vemment intended to increase numbers of women labour to 55 % by coming year 2015
(United Nations Development Programme, 2011). From the statistic done by Grant Thornton
Intanational (2009), 31 % of senior positions are held by Malaysian women as compared to
24 % in global average. It revealed that there are more and more women in grabbing the
higher position as compared to past decades
Although women are still considered as "underrepresented" in management position, it
is undeniable that women begin entering the workforce even the management position. It can
be seen through Subur Tiasa Holdings Berhad at Sibu. Subur Tiasa Holdings Berhad is a
public listed company where the majority of employees are female. There are quite numbers
of women involved in management level positions such as corporate services, risk
management, account, treasury, IT and others. In addition to this, the managing director of
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this company is female, who manages the entire business of company. It revealed the message
that female also can play significant role as same as their male counterparts.
Therefore, the research on difference between genders in [eadership becomes one of
the areas of interest. This is supported by Moran (1992), researches interest in the study of
gender differences in leadership style in the aspects of psychology, sociology and
management as women have commenced to acquire more leadership position.
Cole (2004) mentioned that limitation of data gathered on how women behave in
senior positions and growing participation of women in international labour force motivate the
research to be conducted to study women's leadership style, specifically to examine women
whether they have their own leading ways (Trinidad & Normore, 2004). In addition, knowing
the women's styles of leadership is a significant method to fairness where women are not
stereotyped as the ways women lead" but as "Others ways of leading" (Trinidad & Normore,
2004).
Barker (2000); Bass and Avolio (1994) mentioned that selecting the right person fairly
to ensure the organization's effectiveness and succeed is the actual issue exists in leadership
differences. Therefore, coping with different types of leadership style becomes increasingly
significant for organizations (Moran, 1992). The purpose of reviewing the differences
between male and female in leadership not aims for comparison but to make a new and
different interpretation of female leaders' behaviours (Trinidad & Normore, 2004). By
knowing the differences and similarities of men and women 10 leadership style, the
organization can have better allocation of resources and manpower in order to ensure its
succeed.
4
Pusat Khidmat MakJumat Aka ; . .. VNlVERSm MALAYSIA SARAWAK'
1.2 Problem Statement
As the gender itself is concerned, there are differences between men and women in
many aspects such as characteristics, behaviours and others. Gray (1992, 2008) revealed the
idea that men and women are different, and how they lead are different innately also.
There are numbers of empirical study done on gender differences in leadership. They
might include Eagly and Johnson (1990); Stafyla (2008); Bodla and Hussain (2009);
lohmann and Rowold (2009); Druskat (1994); Mano-Negrin and Sheaffer (2004). In fact, the
previous studies are not only showing the differences but also the similarities between genders
mleadership style. They include Oshagbemi and Gill (2003); Kent, Blair, Rudd and Schuele
(2010) and Oshagbemi and Gill (2003).
There are numbers of study done on gender and leadership for the past 20 years and
yet the results remains greatly inconsistent (Jonsen, Maznevski & Schneider, 2010). The
iDconsistent results might be due to the organizational context of the study (Rohmann &
Rowold, 2009). For an example, the culture, work context even the sex composition in a team
could impact types of leadership style applied. The importance of context also stressed by
)'de (2005), where the meta-analysis concluded that context affects many levels even
J:D88Ilitude and direction of gender differences.
Although there are differences or similarities m leadership style, the feminine
....1I3~,hip styles are just different from the conventional male leadership styles and neither
is better or worse (Trinidad & Hormore, 2004). It is further supported by Shakeshaft
1993), the examination on gender differences not aims to judge the right or wrong of
. war approach but rather to assist in understanding and recognizing the gender
ences, so that, both males and females can work well together.
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Different types of leadership style could have variety of impacts on the organization in
tenns of satisfaction, perfonnance and others. There are several empirical studies concluded
that different types of leadership style would differently affect organization. The studies
include Elenkov (2000); Arham and Muenjohn (2012); Pradeep and Prabhu (2011); Akram,
Alam, Ali and Mughal (2012); (Cushman & King, 1997).
In fact, there are some researchers conducted to investigate the impacts of the
leadership on the organizational performance, which include Lieberson and 0' Connor (1972),
Prenkert and Ehnfors (1997).
From the previous studies, most of them did show significant relationship between the
leadership and organizational perfonnance while they are only few or limited nwnbers of
study show no difference. In addition, different leadership styles would differently affect the
organization due to the different context. Therefore, it is worth to study Sibu organizations.
1.3 Research Objectives
The purpose of this research is to determine the gender differences in leadership
behaviour and investigate the effects of leadership behaviour on the performance of
organizations in Sibu, Sarawak. The specific objectives are:
• To determine the gender differences in leadership behaviour
• To determine the gender differences in leadership styles
• To detennine the gender differences in decision-making styles
• To determine the gender differences in motivation profiles
• To investigate the effects of leadership behaviour on organizational performance
6