the impact of team leadership on organizational performance:moderated by organizational size
DESCRIPTION
Research ThesisTRANSCRIPT
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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
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.
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.
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.
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).
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.
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).
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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