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Page 1: The Impact of Team Leadership on Organizational Performance:Moderated by Organizational Size

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Page 2: The Impact of Team Leadership on Organizational Performance:Moderated by Organizational Size

Name: Muhammad Salman

Registration #: 1127-MBA/LC/2010

Roll #: L-11264

Session: Aug.2010-Jan.2014

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Research Thesis

The Impact of Team Leadership on

Organizational Performance;

Moderated by the Organizational Size

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3

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Acknowledgement

I am very much thankful to my supervisor; whose

guideline became fruitful for me. Thankful to the

faculty members of NUML, Islamabad provided me

the opportunity for Research.

Special Thanks to Ex-Dean, Dr. Rasheed Ahmad

Khan, to whom I had 2 intensive sessions on this

research.

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Dedication

This Research Thesis is dedicated to my

supervisor (Dr. Hina Rehman, my family,

my friends) always supported me in my

educational career.

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Content of the Presentation

Chapter 1 = Introduction

Chapter 2 = Literature Review

Chapter 3 = Research Methodology

Chapter 4 = Results & Analysis

Chapter 5 = Conclusion & Recommendations

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Abstract The present study aims to analyze the role of Organizational Size aTeam Leadership and Organizational Performance. A purposive sample of268 managers from telecommunication sector of Pakistan participates in thecurrent study. The age range of managers is 25 to 60 years (57 F, 211 M).Normality Test and Correlation model demonstrates organizational sizesignificantly moderating the relationship between team leadership andorganizational performance. This research study reveals that organizationalsize significantly moderates the relationship between all facets of teamleadership (Leadership Styles, Team Leadership, Establishing TeamStructure, Decision Making, Managing Conflict, Building Commitment andSharing Information) and organizational performance (Business Performanceand Organizational Effectiveness). The result exhibits positive andsignificant impact of team leadership on organizational performance.Response measures on 5 point Likert scale and close-ended poll asresearch instrument. Two stage non- proportionate inspecting is utilized forinformation gathering.

Magic words: Team Leadership, Leadership Style, Establishing Team Structure, Decision Making, Managing Conflict, Building Commitment, Sharing Information, Organizational Performance, Organizational Size.

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Chapter 1 = Introduction The most popular method of increasing the capacity to

work of employees is teams.

A Real team is never a leaderless.

Different leadership styles follow in different situations.

Team leader’s ability to develop that focus on

gathering, estimations & feeling of a mission.

Leader’s ability to make the right decision at the right

time to achieve the desired goal.

Leader’s ability to tackle the conflict among the team

members.

Building Commitment & Sharing Information among the

team members id key responsibility of team Leader.

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1.1. Problem Statement

On the basis of the study, this

research is to find out the impact

of team leadership on organizational

performance; moderate by the

organizational size. Presently it is a

need of time; Corporations ought to

give initiative in teams to upgrade the

human asset competencies.

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1.2. Objective of the study

The objectives of the research conversed below

To investigate that Team Leadership has

significant impact on Organizational Performance.

To find out the moderating effect of

Organizational Size on team leadership and

Organizational Performance.

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1.3. Significance of the Research

This research is helpful for the top, middle and seniorsupervisors of the small, medium and largeorganizations. Categorized Performance, respectsize and team administration are key focuses atthe feeling of organization theory. An extensivevariety of writing is needed of the way that teamleadership has an effect on hierarchical execution.Despite the fact that the past writing did notindicate the impact of leadership size as aparamount variable in joining the team authorityand organizational performance. In this way,momentum exploration is centering the part oforganizational size as directing variable betweenteam initiative and Organizational Performance.

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1.4. Hypotheses Current research is determined through the following hypotheses:

H1: Team leadership has a positive impact on organizational performance.

H2: Organizational size moderates the relationship between leadership styles and organizational performance.

H2a: Organizational size moderates the relationship between establishing team structure and organizational performance.

H2b: Organizational size moderates the relationship between decision making and organizational performance.

H2c: Organizational size moderates the relationship between managing conflict and organizational performance.

H2d: Organizational size moderates the relationship between building commitment and organizational performance.

H2e: Organizational size moderates the relationship between sharing information and organizational performance.

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1.5. Research Questions Does the Team Leadership influence the

Organizational Performance?

Is there any relationship between analytical

performance and business performance?

Is there any relationship between Organizational

Performance and financial performance?

How organizational performance can be improved

through its business and financial performance?

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Theoretical Framework

Team leadershipLeadership Styles (LS)

Establishing Team Structure

Decision Making (DM)

Managing Conflict (MC)

Building Commitment (BC)

Sharing Information (SI)

Organizational sizeNumber of employee

Organizational

performanceBusiness performance

Efficiency effectiveness

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Chapter 3 (Research Method.)

Sample Size

Sample Frame

Research Design

Research Instrument

Sample Design

Statistical Tools

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3.1. Sample Size This research conducts on employees of middle

level management of telecom sector because

the top level management always involved in

strategic planning. It becomes difficult to

access them so middle level management is

the right population for this survey. Telecom

sector reflects the leading industry of Pakistan. It is

because the team leadership activities are mostly

being performed in this sector. 300

questionnaires are distributed for the current

research among the middle managers, but 268

managers respond properly.

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3.2. Sample Frame Four Small organizations (Netcom, NAYA Tel, SIT & Tele

sys), three Medium organizations

(Warid, ZTE Pakistan & Ministry of IT and Telecom) & four

Large organizations (Mobilink, PTCL, UFone & Telenore)

contributes in the field Survey. Telecom sector has

positive impact on the economy of Pakistan. In 2007

sector grew by 80%, for the last 7 years growth

rate is over 100%. Around 63% of the general public

believes that telecom sector is being taxed rather

heavily. At the end of 2013 total amount contributed in

Pakistan’s economy by the telecom sector was 150

million. At the end of June, current year it was increased

to 167 million. In last 6 years telecom sector

contributed to 14 billion in the FDI. Moreover, it is

contributing heavily in GDP of Pakistan to 3.2% of total 7%.

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3.3. Research Design

3.4. Research InstrumentThe Instrument that used is “Structured Close-

Ended Questionnaire” using 5 points likert scales

ranging from Strongly Disagree to Strongly Agree.

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3.5. Sampling Design “Two Stage Non -Probability Sampling” is used for

data collection. First Stage – Non-Proportioning

Stratified Sampling and in the Second Stage -

Convenience Sampling

Non-Proportioning Stratified Sampling

In the first stage, stratified sampling is used.

Generally fixed quota from each sub organization is

selected. 20% data is gathered from small organizations,

30% of the data is gathered from medium organizations

and rest 50% data is collected from large organizations.

Convenience Sampling

In the second stage convenience sampling is

used, data is gathered from the conveniently available

middle level employees of the telecom sector.

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3.6. Statistical ToolsAfter conducting the field survey, the responses are

analyzed through Normality Tests and

Correlation Analysis. First normality test is used which

tells us about the normality of the data, also skewness

and kurtosis. Than correlation analysis is used which

determines the reliability of the results.

Correlations

Correlation is used for the relationship between two or

more variables. Correlation coefficient (beta) range is

starting from -1 to +1. The -1 and +1 coefficients tell

us about the perfect 86 negative or perfect positive

relationship between the variables. Zero value shows the

absence of correlation. Pearson r is a commonly used

measurement of beta.

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Chapter 4 (Data & Analysis)

Pilot StudyTeam Leadership Organizational Performance

Cronbach's

Alpha

N of Items

.935 32

Cronbach's

Alpha

N of Items

.888 20

Results are indicated in the table for team authority

unwavering quality worth is .936 0f 32 things. For

organizational performance the unwavering quality

qualities are .888 of 20 things. So from the above

values shows that the questionnaire is reliable and is

measuring what the researcher tend to measure.

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Reliability Analysis

Cronbach's

Alpha

N of Items

.922 36

Cronbach's

Alpha

N of Items

.872 20

Team Leadership Organizational Performance

Results indicates that the reliability value of team leadership α =

.922 0f 36 items and for organizational performance value of α =

.872, which shows questionnaire is highly reliable for research

purpose. After reliability analysis, Normality analysis is conductedto ensure that the data gathered is normal. Normality Test is

conducted in both methods: numerically and graphically.

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Test for Normality (T. leadership)

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Gender Kolmogorov-Smirnova Shapiro-Wilk

Statistic Df Sig. Statistic Df Sig.

Leadership Style Male .086 211 .001 .977 211 .002

Female .122 57 .034 .972 57 .210

Team Leadership Male .123 211 .000 .961 211 .000

Female .157 57 .001 .948 57 .017

Establishing Team Structure

Male .104 211 .000 .975 211 .001

Female .119 57 .043 .962 57 .074

Decision Making Male .152 211 .000 .954 211 .000

Female .141 57 .006 .950 57 .019

Building Commitment

Male .132 211 .000 .962 211 .000

Female .113 57 .069 .955 57 .033

ManagingConflict

Male .096 211 .000 .978 211 .002

Female .082 57 .200* .975 57 .275

Sharing Information

Male .152 211 .000 .960 211 .000

Female .115 57 .057 .952 57 .025

a. Lilliefors Significance Correction

*. This is a lower bound of the true significance.

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The above table shows the results of significance of

K-S & S-W tests for the independent variable

elements. Leadership Style results are .001 and .002

for male, .034 and .210 for female. Same as other

elements establishing team structure are .000 and

.001 for male, for female .043 and .074. Decision

Making results are .000 and .000 for male, for female

.006 and .019. Building Commitment results are .000

and .000 for male, .069 and .033 for female. As the

results of significance of Managing Conflict .000 and

.002 for male, .200 and .275 for female. Significance

values are .000 and .000 for male, for female .057

and .025.

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Test for Normality (Org. Size)

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Tests of Normality (Table 4. 6. 3.)Gender

Kolmogorov-Smirnova

Shapiro-Wilk

Statistic

Df Sig. Statistic

Df Sig.

organizational size

Male .159 211 .000 .929 211 .000

Female

.154 57 .002 .921 57 .001

a. Lilliefors Significance Correction

Above table shows that the significance results of moderating

variable, organizational size are .000 and .000 for male, for

female is .002 and .001 values of K-S & S-W tests.

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Test for Normality (Org. Performance)

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(Table 4. 8. 3.)

gender Kolmogorov-Smirnova Shapiro-Wilk

Statistic

Df Sig. Statistic

Df Sig.

Organizational Performance

Male .102 211 .000 .971 211 .000

female .074 57 .200* .972 57 .208

Business Performance

Male .084 211 .001 .980 211 .004

female .102 57 .200* .969 57 .158

org. effectiveness Male .083 211 .001 .978 211 .002

female .087 57 .200* .971 57 .186

a. Lilliefors Significance Correction

*. This is a lower bound of the true significance.

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Above table shows the significance

values for dependent variable,

organizational performance. The values

are .000 and .000 for male, .200 and .208

for female. Element of business

performance, results are .001 and .004

for female values are .200 and .158 for

female. Organizational effectiveness

values are .001 and .002 for male, values

are .200 and .186 for female.

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Correlation StatisticsH1: Team Leadership has positive impact on Organizational

Performance.

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Correlations (4. 11. 1.)

Team Leadership Organizational Performance

Team Leadership

Pearson Correlation

1 .906**

Sig. (2-tailed)

.000

N 268 268Organizational Performance

Pearson Correlation

.906** 1

Sig. (2-tailed)

.000

N 268 268

**. Correlation is significant at the 0.01 level (2-tailed).

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For checking the impact of TeamLeadership on OrganizationalPerformance Correlation Analysis is used.Results shown above in the that r = .906and p = .000 which shows that there isstatistically significant positive (perfect)relationship between team leadership andorganizational performance.

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H2: Organizational Size moderates the

relationship between Leadership Styles and

Organizational Performance.

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For checking the moderation effect of organizational size on

leadership style and organizational performance correlation

analysis is used. Firstly, leadership style and organizational

size correlation analysis is conducted. It is shown table that r

=.388 and p = .000 which shows that there is statisticallysignificant positive relationship between leadership styles &

organizational performance. Secondly, for organizational

size and organizational performance, results shown where r

= .411 and p = .000. Hence, there is positive relationship

between leadership styles, organizational size &organizational performance.

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H2a: Organizational size moderates the

relationship between Establishing Team

Structure and organizational performance.

For checking the moderating effect of organizational sizeon establishing team structure & organizationalperformance. Correlation analysis is used. Firstly,establishing team structure & organizational sizecorrelation analysis is conducted. It is shown in table that r= .388 and p = .000 which shows that there is statisticallysignificant positive relationship between establishingteam structure & organizational size. Secondly, fororganizational size and organizational performance,results shown in table where r = .411 and p = .000. Hence,there is positive relationship among establishing teamstructure, organizational size & organizationalperformance.

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H2b: Organizational Size moderates the

relationship between Decision Making and

Organizational Performance.

For checking the moderating effect oforganizational size on decision making &organizational performance. Correlation analysis isused. Firstly, decision making & organizational sizecorrelation analysis is conducted. It is shown in tablethat r = .385 and p = .000 which shows that there isstatistically significant positive relationship betweendecision making & organizational size. Secondly, fororganizational size and organizational performance,results shown in table where r = .411 and p = .000.Hence, there is positive relationship amongestablishing team structure, organizational size &organizational performance.

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H2c: Organizational Size moderates the

relationship between Managing Conflict and

Organizational Performance.

For checking the moderating effect oforganizational size on managing conflict &organizational performance. Correlation analysis isused. Firstly, managing conflict & organizational sizecorrelation analysis is conducted. It is shown in tablethat r = .394 and p = .000which shows that there isstatistically significant positive relationship betweenmanaging conflict & organizational size. Secondly,for organizational size and organizationalperformance, results shown in table where r = .404and p = .000. Hence, there is positive relationshipamong managing conflict, organizational size &organizational performance.

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H2d: Organizational Size moderates the

relationship between Building Commitment

and Organizational Performance.

For checking the moderating effect of organizational sizeon building commitment & organizational performance.correlation analysis is used. Firstly, building commitment &organizational size correlation analysis is conducted. It isshown in table that r = .367 and p = .000 which shows thatthere is statistically significant positive relationshipbetween building commitment & organizational size.Secondly, for organizational size and organizationalperformance, results shown in table where r = .411 and p= .000. Hence, there is positive relationship amongbuilding commitment, organizational size &organizational performance.

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H2e: Organizational Size moderates the

relationship between Sharing Information and

Organizational Performance.

For checking the moderating effect of organizationalsize on sharing information & organizationalperformance. Correlation analysis is used. Firstly,sharing information & organizational size correlationanalysis is conducted. It is shown in table that r = .444and p = .000 which shows that there is statisticallysignificant positive relationship between sharinginformation & organizational size. Secondly, fororganizational size and organizational performance,results shown in table where r = .411 and p = .000.Hence, there is positive relationship among sharinginformation, organizational size & organizationalperformance.

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Inter-correlation Matrix

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Correlations (Table 4. 11. 14.)Team

Leadership

Organizational Size

Organizational

Performance

Team Leadership

Pearson Correlation 1 .423** .906**

Sig. (2-tailed) .000 .000

N 268 268 268Organizational Size

Pearson Correlation .423**

1.411**

Sig. (2-tailed) .000 .000

N 268 268 268OrganizationalPerformance

Pearson Correlation .906** .411** 1Sig. (2-tailed) .000 .000

N 268 268 268**. Correlation is significant at the 0.01 level (2-tailed).

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By checking all three variables Team Leadership

(IDV), Organizational Size (MODV), and

Organizational Performance (Dependent Variable,

results shows in table values of Pearson correlation r

= 1 for Team Leadership, r = .423 organizational size

and r = .906 for the organizational performance.

Which indicate that there is significant positive

(perfect) impact of team leadership on

organizational performance. It also shows that

organization size plays moderating effect between

both independent variable team leadership and

dependent variable organizational performance.

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Chapter 5

5.1 Discussion

H1: Team leadership has positive impact on organizational performance. The finding of this study is aligned with Bass (1990), Follett (1926), Morgeson, Amid & Belli (2002), Shone (2002), Gutheri(1994), Lills (2004), Karam (2009), Carson, Morrne (2007) & Wang et al (2010) these research studies explain that there is positive impact of team leadership on organizational performance. The findings of the current study also elaborates the reliability analysis are put in here with the key results as r = .906 and p = .000. This indicates that our findings come true to the previous findings. Team leadership elements always have a positive perfect impact on organizational performance.

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H2: Organizational sizes moderate the

relationship between leadership style

and organizational performance.

For checking the moderating effect of organizational sizebetween leadership styles and the organizational performance,the current research r = .388 & p = .000 is aligned with theprevious research of Burns (1978) , House (1977), Rost (1900),Kanter (1989) & Meindle (1988), Marks, Zaccaro, & Mathieu(2000), Bala, Halam, Shirivastave & Karishna (2007) shown in theprevious studies that leadership style have strong positive impacton organizational performance. The current results also providequick and concerning results regarding the impact of leadershipstyle on the organizational performance. Variety in the leadershipstyle aspects played a vital role in the perfect positive impact ofleadership style. Attributes of leadership style like charisma,individual concern to the tasks and the pragmatic view of theleadership those are concern with the view of leadership theoryeither transformational or transactional leadership come into thepractice.

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H2a: organizational size moderates the

relationship between establishing team

structure and organizational performance.

Previous research is aligned with current research for teamstructure and organizational performance. It is viewed byPielstic (2000), Barry (1991), Mohrman & Cohen (1995),Machan, Chawo & Balis (1996) in the previous researchesshown as team structure is the magic that binds a powerfulmethod guaranteeing patient wellbeing and decreasingtherapeutic, considering the learning, execution, anddisposition of medicinal allies that shows there is positiveimpact of establishing team structure on organizationalperformance. Bass (1998), Judge, Piccolo (2004) & Mehara etal. (2006) this also shows strong positive impact ofestablishing team structure on organizational performance.The results or findings come true and relate to the previousstudies. Reliability analysis of the current factor of establishingteam structure is very much reliable as the values identifiedhere r = .388 and p = .000

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H2b: organizational size moderates the

relationship between decision making and

organizational performance.

David & Schweigr (1994), Amason (1996),

Abdul & Rasheed (1997) & Rehman (2011),

previous research is aligned with current

study, the findings r = .385 and p = .000

shows that there is positive impact of

decision making on organizational

performance.

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H2c: organizational size moderates the

relationship between managing conflict and

organizational performance.

Aligning the previous research withcurrent study of managing conflict onorganizational performance. Alessandra(1993), Kim Min & Cha (1999), Brickman(1996) & Hiller et al. (2006). Current resultsr = .394 and p= .000 shows that there issignificant positive relationship betweenmanaging conflict on organizationalperformance.

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H2d: organizational size moderates the

relationship between building commitment

and organizational performance.

Previous research is aligned with the current

research on building commitment on

organizational performance. It is cited by

Vermeulen (2003), Moreland & Barb (2003),

Taggar (2002), Vivette (2001) Jiang & Jing (2003)

& Klein et al. (2006). Results find shows r = .367 &

p = .000 which shows that there is strong positive

impact of building commitment on

organizational performance.

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H2e: organizational size moderates the

relationship between sharing information on

organizational performance.

Previous study Henry (1995), Jehn & Shah

(1997), Jessica & Leslie (2009), current

results r = .444 and p = .000 shows that

there is strong positive impact of sharing

information on organizational

performance.

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5.2. Direction of Future Research

Researcher's effort to demonstrate that the relationship exist around Organization Size, Team Initiative and Hierarchical Execution boundaries with in Telecommunication part.

The study upgrades creative path for the exploration of administration by opening up a database on the significance of Organization Size, Team Initiative and Authoritative Execution Exercises.

This research exertion opens new degree in Organization Size, Team Initiative and Hierarchical Execution think about the related and joined on their exercises as HR analyst further examined with honor.

This study is likewise useful for team leaders openly and private areas organization to anticipate methods in choice making, strategy making and execution systems.

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5.3 Limitation of the study

Important restrictions with respect to the effects of this exploration study are taking after:

We have chosen the specimen through non Likelihood advantageous testing and the demographic variables, for example, sex, conjugal status, age, occupation encounters and instructive capability are not considered to make this examination an exceptionally point by point one.

Telecommunication part is the focused on region of study in exploration.

The strategy utilized for creating information, shut surveys, center gathering dialog, Delphi method, in-profundity meetings and it.

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5.4 Course of future Research Future examination ought to look for extra team initiative variables

beginning better example to raise the measurable dissectionpower. Least information show deficient or dull side of picture yetmost extreme show respectable quality of examination.

This research exertion serves to create the graphical model fordelineating the relationship around Team authority, Choice making,Critical thinking, team structures and hierarchical execution. Itlikewise distinguishes control of authoritative Size boundaries to therelationship of Hierarchical execution, business execution,Authoritative adequacy, least crowd recommend, push theexample size of noteworthy studies. Suggestions for the futureexamination work is for the intriguing analyst and designer is to formthe new model for the Team administration relationship not justTelecom, Keeping money parts, include more organizations too.

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5.5 Conclusion

Conclusion recognized those variables which affectTeam Leadership and likewise acknowledged morethree variables. Telecom chiefs' reaction indicatedteam leadership style is the most influential variable toTeam Leadership Exercises although choice makingcan likewise assume an essential part to team initiativeExercises. To spot into a nutshell it is closed in thebrightening of theories that team administration isemphatically connected with authoritative executiondirected by organizational size. There exists criticalmoderate positive affiliation between Team Authorityand hierarchical execution Exercises while an alternatespeculation tells that administration styles has positiveeffect on authoritative Execution. Results r = .906 tellsthat its effect is sure or positive or perfect in generaltelecom.

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