the relationship between leader’s perceived uncertainty
TRANSCRIPT
The Relationship between Leader’s Perceived Uncertainty and Team Performance:
The Mediating Role of Directive Leadership Style
Thesis for MSc HRM
University of Groningen
Date: June 13, 2021
Lieke Pouwels
S4364007
Supervisor: Wout de Vries, MSc.
Wordcount: 10877
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ABSTRACT
This paper presents the results of a quantitative study on leadership during the COVID-19
crisis. Following the current literature, it is expected that a leader's perceived uncertainty
negatively influences team performance and that this relationship is mediated by a directive
leadership style. According to the current literature, team tenure will also negatively influence
the relationship between directive leadership and team performance. This study used the data
of leaders who participated in a questionnaire with several members of their team. Employees
rated their leaders on their leadership style, while leaders rated their employees on team
outcomes. Results showed that no significant evidence was found for the proposed moderated
mediation relationship. Also, no significant relationship was found between leader's perceived
uncertainty and team performance and leader's perceived uncertainty and directive leadership.
Results did show that directive leadership significant negatively related to employee
performance, however, this relationship was not moderated by team tenure. Those findings
show evidence for relationships that contradict the current literature.
Keywords: Uncertainty, leadership, team performance, directive leadership, team tenure,
crisis.
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INTRODUCTION
During the global pandemic since the beginning of 2020, business is facing uncertainty
and the threat of losing their companies, and therefore, good leaders are needed during the crisis.
A lot of problems were caused in health care due to COVID-19 (Ceukelaire & Bodini, 2020),
but not only health care is affected. Pandey (2020) suggests that the whole financial sector will
face negative consequences witnessing this COVID-19 crisis. Pearson and Clair (1998) state
that a crisis is an event containing high ambiguity with unknown causes and effects, and
therefore it is a major threat for the organization. They suggest that to manage a crisis
effectively, leaders can make a difference in the survival of the organization. When leaders face
this threat during a crisis, they will feel low controllability of the organization because other
factors constrain the actions of the leaders (Jackson & Dutton, 1988). Vessey, Barrett and
Mumford (2011) argue that during these times of uncertainty, the cognition of a leader is an
important influence on team performance. This is described by Nguyen, Yandi and Mahaputra
(2020) who state that leadership is one of the factors that influence team performance.
O’Driscoll and Beehr (1994) also found that leaders can influence the amount of stress
employees perceive from the environmental crisis or threat and therefore leaders do have an
influence on team performance. Therefore, this paper will investigate the influence of the
leader’s perceived uncertainty on team performance. To research this subject, the question for
this research is: “To what extent does the leader’s perceived uncertainty influence team
performance?”
To research the influence of a leader's perceived uncertainty on team performance, a
proposed model will be developed with a mediating effect of directive leadership and a
moderating effect of team tenure. The threat-rigidity theory of Staw, Sandelands and Dutton
(1981) suggest that when leaders perceive uncertainty, their behaviour will change toward a
more dominant leadership style. Because this theory suggests that a leader's behaviour changes
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during uncertainty and becomes more dominant, directive leadership will be used as a mediator.
This thesis will add to the current debate on participative versus directive leadership style and
its effectiveness on team outcomes (e.g. Bartsch, Weber, Büttgen & Huber, 2020). The current
literature shows that directive leadership, as well as participative leadership, do have a positive
influence on performance (Somech & Wenderow, 2006; Dolatabadi & Safa, 2010). Employees
have different needs of leaders and the situational leadership approach suggests that when
employees do have a lower tenure, they need more guidance and structure from the leader and
therefore a directive leader will enhance their performance (Hersey and Blanchard, 1969a). For
this reason, team tenure will be used as a moderator in the model for the relationship between
directive leadership and team performance.
Several researchers and theories already addressed the subject of leadership during a
crisis and its outcomes on teams. The contingency theory of Fiedler (1971b, 1978) suggests that
the effectiveness of leadership is depending on the situation the leader is in. In this theory, it is
stated that when the task structure for teams is low, so group tasks are ambiguous with no clear
goal, the directive leadership style is a more suitable approach to gain better team performance.
Carrington, Combe and Mumford (2019) showed that during a crisis, the leader influences
followers and not the other way around and therefore, the leadership style the leader uses is of
great importance for the outcomes of teams (Chiok Foong Loke, 2001; Rosen, Harris &
Kacmar, 2011).
Those variables will be researched using a questionnaire for leaders and their teams
which is conducted in times of uncertainty. In this questionnaire, the leader will answer
questions on the uncertainty they perceive and they will rate their employees on several
outcomes. The employees will rate their leader on their leadership style. The COVID-19 crisis
in which this research was done gave a unique opportunity to investigate the influence of
uncertainty on leadership and employee outcomes. Researchers often suggest that a crisis
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automatically leads to perceived uncertainty and threat by leaders (Pearson & Clair, 1998;
Wang, Hutchins & Garavan, 2009). Reilly (1987) also states that a crisis situation will cause
uncertainty, since a crisis an unexpected and unfamiliar event. In this study, it will not be
assumed that leaders automatically perceive uncertainty but the perceived uncertainty of leaders
will be asked for straightforwardly to leaders in the questionnaire.
This study makes several contributions to the current literature. At first, this study will
research the uncertainty a leader perceives by asking the leaders about their perceived
uncertainty. Other studies often assume that a crisis leads to uncertainty for a leader, but the
current thesis will contribute to this literature by actually researching the amount of uncertainty
a leader perceives during this COVID-19 crisis. Secondly, the contingency theory of Fiedler
(1971a, 1978) and the threat-rigidity theory of Staw et al. (1981) suggest that the leader changes
their behaviour when he or she is facing a different situation or a threat. The current research
will contribute to this by also taking into account the perspective of the employee and the
influence of this perceived uncertainty on employees during the crisis.
THEORETICAL BACKGROUND
Leader’s Perceived Uncertainty and Team Performance
During times of uncertainty, the perception of a leader is an important influence on
performance (Vessey et al., 2011). The perception of a leader is the way in which the leader
interprets their experiences and this perception can create the effectiveness and climate of the
working environment (Otara, 2011). The uncertainty a leader perceives differs across different
leaders as leaders in different organizations can interpret the same situation differently (Thomas
& McDaniel, 1990). A crisis is an unexpected and unfamiliar event (Reilly, 1987) with high
ambiguity and unknown causes and effects (Wang et al., 2009) that forms a major threat for the
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organization (Pearson & Clair, 1998). Egelhoff (1982) suggests that a crisis often includes
strategic issues, which can include different threats and problems and are often ambiguous and
therefore require good interpretation effort (Mintzberg, Raisinghani & Theoret, 1976). Milliken
(1987) describes in his paper environmental uncertainty as consisting of three different types
of uncertainty, namely state uncertainty, effect uncertainty and response uncertainty. State
uncertainty is the uncertainty managers can have when they perceive the organizational
environment as unpredictable. Effect uncertainty is defined as the inability to predict what the
impact of the environmental change will be on the organization. Response uncertainty happens
when there is a lack of knowledge of response options for the managers and so there is an
inability to predict the consequences of a response. The current research will look to uncertainty
based on how leaders are capable of addressing and managing the situation. This is in line with
response uncertainty described by Milliken (1987) and so the response uncertainty will be taken
into consideration to form the definition of the perceived uncertainty of leaders in their
organization.
Besides the perceptions of leaders, also the emotions they perceive during times of crisis
can predict the performance of teams. Employee performance means the "financial or non-
financial outcome of the employee that has a direct link with the performance of the
organization and its success" (Anitha, 2014: 313). During uncertainty and in crises, there is a
high probability that leaders of an organization and other professionals in that organization
experience more negative emotions such as stress and anxiety (Neck & Manz, 1996). The
negative emotional reactions are often caused by the pressure on leaders to deliver an immediate
and effective reaction to the crisis and therefore, the leader can perceive uncertainty through
their emotions (Pearson & Clair, 1998). Research from Eberly and Fong (2013) show that the
emotions of leaders can affect the emotions and perceptions of followers and therefore also can
affect follower's outcomes. Humphrey (2002) showed that those emotions of leaders
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specifically can influence the performance of their followers, he states that leaders who are able
to manage their emotions can influence team and individual performance. So, it can be stated
that leaders perceive certain emotions during times of crisis, which influence how they perceive
uncertainty and so, the performance of a leader’s followers will be influenced.
Lastly, not only the leader can perceive uncertainty during a crisis but employees can
feel the same uncertainty too and this can influence their performance. Nelson, Cooper and
Jackson (1995) state that perceived uncertainty of employees themselves has a negative
relationship with many employee outcomes such as job performance. In their study, Cullen,
Edwards, Casper and Gue (2013) found that this negative relationship between perceived
uncertainty of employees and their job outcomes is mediated by the amount of support they
perceive to get from the organization they work for. This means that the employees need to be
guided through the uncertainty by their organization, which is also supported by O’Driscoll and
Beehr (1994) who state that supervisors can influence the uncertainty perceived by employees.
They found that supervisors can influence the amount of stress and uncertainty employees
experience and that this level of stress and uncertainty can, in turn, affect team performance.
So, the perception of the uncertainty of leaders is an important influence on team
performance. Leaders can have emotions that cause perceptions of uncertainty and this affects
team performance negatively. Also, employees can perceive some uncertainty themselves
during times of crisis, which also negatively affect their performance and call for leadership
and guidance of the organization. For those reasons the first hypothesis of the proposed model
in Appendix A is:
Hypothesis 1: There exists a negative relationship between the leader’s perceived
uncertainty and team performance.
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Leader’s Perceived Uncertainty and Directive Leadership
The threat-rigidity theory of Staw et al. (1981) describes how individuals respond to a
threat. A threat involves that “feelings of control are likely to be low because others constrain
the actions of managers” (Jackson & Dutton, 1988: 375). Thomas, Clark and Gioia (1993)
found that the use and availability of information has a positive influence on controllability.
However, the definition of uncertainty of Milliken (1987) suggests that when managers
perceive uncertainty, there is a lack of information and knowledge on possible response options.
Therefore, it can be suggested that a threat, in which feelings of control are low, is a situation
in which a leader perceives uncertainty. The threat-rigidity theory (Staw et al., 1981) shows that
in situations of a threat, with restrictions in information, individuals put more emphasis on prior
experiences. In that way, when there is a lack of controllability of the situation, individuals tend
to behave in a more dominant and controlling way, which suggests that when organizations,
including top managers, experience a shock or threat, they will try to exercise more control.
Stoker, Garretsen and Soudis (2019) describe this with their study to the financial crisis of 2008
where they found that this financial crisis led to an increase in directive leadership. Therefore,
they stated that directive leadership behaviour increased with the magnitude of the crisis.
As the threat-rigidity theory suggested that there is a relationship between a perceived
threat and a changing leadership style towards a more dominant style, more studies are pointing
in this direction. Directive leadership "characterizes a leader who gives followers instructions
about their task, including what is expected of them, how it is to be done, and the timeline for
when it should be completed" (Northouse, 2019: 120). The contingency theory of Fiedler
(1971b, 1978) states that when tasks are ambiguous and there is no clear goal, a directive
leadership style is a more suitable approach. With the situational approach to leadership,
Blanchard (1985) suggests that there is no one best leadership style, but that leaders should
adapt their behaviour to meet the demands of that specific situation. Griffin, Neal and Parker
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(2007) support this by showing that when the work context involves uncertainty and leaders
cannot behave in their normal roles, they need to be adaptive in their leadership style. The
situational approach to leadership suggests that leadership is composed of a supportive and a
directive dimension and that each dimension should be applied in the appropriate situation
(Northouse, 2019). To determine which leadership style is needed, the leader must evaluate her
or his followers and change their style to their needs in a given situation. Rast, Hogg and
Giessner (2012) found that employees who felt the uncertainty of the situation were more in
need of an autocratic or directive leader. Hogg and Adelman (2013) also found that perceived
uncertainty can make it difficult to plan action and therefore, the behaviour of a leader that takes
action and motivates to reduce uncertainty is needed. For those reasons, the second hypothesis
is:
Hypothesis 2: Leader’s perceived uncertainty is positively related to a directive
leadership style
Directive Leadership Style and Team Performance
The path-goal theory of House (1971) suggests that there are primary four leadership
behaviours identified that explain how leaders can help followers along their path towards
reaching their goals. It is suggested that when leaders clarify the goals for the subordinates, the
perception of the path will change and therefore the performance of employees in the team of
the leader will increase. Both the participative leadership style and the directive leadership style
are mentioned very often as comparison by different researchers (e.g. Li, Liu & Luo, 2018;
Arnold & Loughlin, 2013) and are also both associated with high levels of team outcomes such
as job performance (Sagie, Zaidman, Amichai-Hamburger, Te’eni, & Schwartz, 2002).
A directive leadership style and a participative leadership style were both found to
having a relationship with team performance. In their study of the directive and participative
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leadership style on performance, Somech and Wenderow (2006) found that both a participative
leadership style and a directive leadership style have a positive influence on employee's
performance. Dolatabadi and Safa (2010) suggest that both the participative and directive
leadership style will help employees to get a better understanding of their roles and
responsibilities in the firm. Besides those findings that both participative and directive
leadership styles are positively related to performance, Li et al. (2018) found that participative
leadership can enable higher creativity in teams but lower efficiency, while directive leadership
will create higher efficiency of employees which is an important dimension of higher team
performance. Therefore, they suggest that leaders should pay more attention to behaving in
directive leadership. In a recent study of Bartsch et al. (2020) in service industries, they found
that during times of crisis, task-oriented, as well as relation-oriented leadership behaviours, are
needed to keep the good level of employee's work performance. Especially engaging in task-
oriented leadership behaviour that guides employees and sets a clear direction will improve
teamwork and team performance according to this research. Zheng, Gou, Wu, Zhao, Li and Liu
(2021) add to the mentioned theories that the influence on the performance of teams with a
directive leadership style is mediated by the leader-member exchange. Leader-member
exchange is the exchange relationship between leader and follower (Liden and Maslyn, 1998)
and this exchange quality can be improved by the leadership style the leader uses. Zheng et al.
(2021) found that this quality of the exchange relationship between leader and follower is higher
when the leader uses a participative leadership style and so, also the performance of teams is
higher when the leader uses a participative leadership style rather than a directive leadership
style.
Even though there were positive relationships found for directive leadership and
participative leadership on team performance, some studies also show differences between the
styles. In an experimental study of leadership styles on team performance, Sanchez-
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Manzanares, Rico, Antino and Uitdewilligen (2020) found that directive leadership had a more
positive influence on team performance than participative leadership had. In another
experimental study of Lorinkova, Pearsall and Sims (2013), they also found that directive
leadership has a more positive influence on performance rather than participative leadership.
However, Somech and Wenderow (2006) concluded their findings of a questionnaire study by
suggesting that, even though they found that both directive leadership, as well as participative
leadership, do have a positive influence on performance, the participative leadership style is
having a higher positive effect on performance than does directive leadership. In a questionnaire
study of Stoker (2008) she found that for teams with a longer tenure, the performance was
higher when the leader showed participative leadership behaviours rather than directive
leadership behaviours.
Nevertheless, it is assumed that a directive leadership style has a positive influence on
employee’s performance and so on the performance of the team. Therefore, the third hypothesis
is:
Hypothesis 3: A leader’s directive leadership style is positively related to team
performance
The Moderating Effect of Team’s Tenure in Current Position on the Relationship between
Leader’s Directive Leadership Style and Team Performance
The tenure of employees in their current position can influence how employees perceive
their leader because employees with different tenures do have different needs they expect from
their leader (Hersey and Blanchard, 1969a). Hersey and Blanchard came up with the situational
approach of leadership in which they state that different situations demand a different kind of
leadership. From this perspective, it is suggested that leaders should match their leadership style
to the commitment and competence of their followers and therefore change the degree to which
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they are directive or supportive (Northouse, 2019). According to this situational approach,
followers are at a specific developmental level where their competence and commitment to the
organization differs over time. Followers that are new to the organization or team of the leader,
and so have a lower tenure, have been identified as followers with high levels of commitment,
but lower levels of competency. The situational approach of Hersey and Blanchard (1969a)
suggests that when a leader has followers at this developmental level, they should use more
directive and less supportive behaviours to create better employee outcomes. The path-goal
theory of House (1971) adds to this situational leadership approach by stating that follower
characteristics indeed play a role in interpreting a leader's behaviour. The low level of
competence in the situational leadership approach comes with a for employees ambiguous and
unclear work environment and the path-goal theory does also call for a directive leadership style
in which there is clear guidance in this low level of competence (Northouse, 2019).
Besides this theory on the situational approach, there is also empirical evidence in favour
of the statement of the situational approach that when followers do have a lower tenure, a more
directive leadership approach is more suitable. In a study of Stoker (2008) on self-managing
teams, she found that team tenure is a moderator for the relationship between initiating structure
and employee performance. Northouse (2019) states that the initiating structure concept is
similar to directive leadership because both styles give followers explicit expectations and
guidance and set goals for the employees. In her study, Stoker (2008) found that employees
with low team tenure, so employees with shorter tenure in their current position, had higher
levels of performance when their leader shows initiating structure behaviours. Team members
with longer team tenure show a negative relationship between initiating structure and
performance. Another study by Kim, Liu and Diefendorff (2014) found that the tenure of
employees in their organization moderated the relationship between directive leadership and
job performance, such that the positive effect of directive leadership on employee performance
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becomes weaker when organizational tenure increased. For those reasons, the fourth hypothesis
is:
Hypothesis 4: Employee’s tenure in their current position in their team moderates the
relationship between leader’s directive leadership style and team performance, so that
the relationship between directiveness and performance is more strong when team
tenure is low than when team tenure is high.
Participative Leadership Style as a Control Mediator
The literature often compares the participative leadership style and the directive
leadership style (e.g. Li et al., 2018; Arnold & Loughlin, 2013; Somech & Wenderow, 2006).
Sagie et al. (2002) suggest that directive leadership and participative leadership both have a
positive relationship with high levels of team outcomes such as job performance and job
satisfaction. Somech and Wenderow (2006) found that both styles do have a positive
influence but that the participative leadership style is having a higher positive effect on
performance than does directive leadership. Zheng et al. (2021) describe this by also stating
that the performance of teams is higher with a participative leadership style rather than a
directive leadership style. The threat-rigidity theory of Staw et al. (1981) suggests that when
individuals experience a threat, they will fall back into their natural habits and therefore, their
usual behaviour will expect what their behaviour during a threat will be. Griffin et al. (2007)
show that when there is uncertainty, directive leaders are needed. Rast et al. (2012) also
suggest that employees are more in need of a directive leader during uncertainty. Therefore, it
is expected that leaders become more directive during the perception of uncertainty rather
than participative. For those reasons, an additional analysis will be run with participative
leadership as a mediator instead of a directive leadership style.
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METHODS
In this paper, all the hypotheses have been tested by using survey data. For the data
collection, supervisors and their employees were asked to participate in the survey on
‘Leadership and work outcomes in times of COVID-19’. The supervisors were contacted by a
group of bachelor and master students, whom all informed their personal network to gather
supervisors for this research. The supervisors choose 3 to 10 team members to also fill in the
questionnaire. This study contained two different surveys, one for the supervisors and one for
the employees. Both the supervisor and employees were asked to fill in the surveys because
self-ratings and other-ratings tend to give the most unique insights into the normal behaviour
of a person (Vazire & Mehl, 2008). The supervisors were asked to describe their leadership
style and the employees had to rate this leadership style. The supervisors also rated their
employees on different outcomes and the employees rated their own outcomes. The survey
contains three online questionnaires, differing over time. The first questionnaire was sent to the
participants in March and this first survey data will be used for this particular study. The
duration of the questionnaires was on average 29.9 minutes when the cases where participants
started the questionnaire on one day and finished it on another day were excluded, with a
standard deviation of 30 minutes. The participants were informed about the content and purpose
of the study in a cover letter, in which also the confidentiality of this study is explained to the
participants.
For the questionnaire, 188 leaders with 847 of their employees were found to fill in the
survey. From this sample, 164 leaders filled in the survey and 593 employees did respond to
the questionnaire. This gives an overall response rate of 72%. After excluding the cases where
the questionnaire was not filled in completely, 157 complete questionnaires from the leaders
were left and from the employees, 555 completed the questionnaire. This gives a response rate
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of 68% with only completed surveys included. Only work teams where the supervisor, as well
as at least one employee, filled in the survey will be included in the survey and after this, the
cases from the leader and their employees will be combined by calculating the means of the
employee's responses, which means that the employee’s responses were aggregated to the team
level. From 23 teams, there was no complete survey, which means that only 134 cases were
left. Also, the responses where the variables that are used in this study are not completed will
be excluded from this study, which gives a final sample of 128 valid cases for this thesis. Those
128 cases consist of 128 leaders and 432 of their employees. Because students used their
personal network, the sample of participants differs in their background in several aspects. From
the leaders who participated in the survey, 67.2% had a Dutch nationality, other nationalities
were mainly German, British, Italian and American. Of those different nationalities, 44.5% of
the companies have locations in multiple countries. The participants in this survey worked in
very different sectors, but most companies worked in consultancy (13.1%), retail trade (10.9%),
education (9.4%) and manufacturing (8.6%). From the sample of this survey, most leaders are
higher-educated. 37.5% of the leaders has a bachelor’s degree and 43.8% also has a master’s
degree. Of those leaders, 70.3% is male and 29.7% is female.
Measures
Leader’s uncertainty. The perceived uncertainty of leaders is rated by the supervisors.
The perceived uncertainty is measured with 5 items which are developed by Thomas, Clark and
Gioia (1993). Because the Cronbach’s Alpha of those 5 items was below 0.5, two items were
deleted to get a higher Cronbach’s Alpha (α = 0.602). The questions that were deleted are “Be
constrained in how you could interpret the situation?” and “Feel that how the situation is
resolved will be a matter of chance?” So only three questions from the five items of Thomas,
Clark and Gioia (1993) were used to measure a leader's perceived uncertainty. The items were
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measured with a Likert scale, in which the score 1 represents ‘Not at all’ and 7 is ‘To a very
great extent’. A sample item of an included question includes: “Feel you can manage the
situation instead of the situation managing you?” This question is in line with the definition of
response uncertainty by Milliken (1987) which is used in the current study. In Appendix B all
items and the scale of the leader’s perceived uncertainty are shown. The mean of leader’s
perceived uncertainty is 3.58 with a standard deviation of 1.08.
Team performance. The performance of employees in the leader’s team is measured
with a 3-item scale (α = 0.868) adapted from Wayne, Shore and Liden (1997). The performance
of employees has been rated by the supervisors in their survey. The items are measured on a
Likert scale, in which the score 1 represents ‘Strongly disagree’ and 7 is ‘Strongly agree’. A
sample item includes “{Employee1} gets his/her work done in an effective manner”. In
Appendix C all items and the scale of the employee’s performance are included. The
performance of the employees will be aggregated to the team level so that for each team the
average performance is used in this study. The mean score on employee’s performance of the
teams rated by their supervisors is 5.90 with a standard deviation of 0.67.
Directive leadership. The directive leadership style of the supervisor is rated by the
employees. The employee’s ratings are measured with a 5-item scale (α = 0.83) adapted from
Stoker et al. (2019). This 5-item scale is also be rated on a Likert scale, in which a score of 1
represents ‘Strongly disagree’ and a score of 7 represents ‘Strongly agree’. An example item
is: “{Supervisor} makes most decisions for employees” and Appendix D includes all items and
the scale of the directive leadership. The mean score on the directive leadership style of the
leader rated by the employee is 3.73 with a standard deviation of 1.01.
Team tenure in current position. The measure tenure in current position is included in
the employee’s survey by the question “While working for {Organization}, how long have you
worked in your current position?” The answer has been given by the employees in years. The
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question on employee’s tenure in current position is included in Appendix E. The positional
tenure of employees is aggregated on the team level so that for each team the average tenure is
used in this study. The mean of team tenure in years is 4.63 with a standard deviation of 3.74.
Control variables. In addition to the variables of the hypothetical model, also related
variables that are potentially correlated with these measures are included. This is done to control
whether the outcomes of the model change when controlled for these variables. The control
variables are included or excluded based on the criteria of Bernerth and Aguinis (2015). The
first control variable that is used is the gender of the leader (mean = 1.30, SD = 0.46), which
can have an influence on the relation between the leader's perceived uncertainty and a directive
leadership style. Han, Hellman, Lu, Zhou and Wang (2016) found that there is a difference in
how women and men express and handle uncertainty. According to a meta-analysis of Eagly
and Johnson (1990), men tend to lead more autocratically and directive and women have a more
democratic and participative leadership style. The empirical study of Arnold and Loughlin
(2013) found a difference in male and female leadership behaviours where men tend to have
more participative behaviour than women. Since this relationship is established empirically and
the control variable is reliable, the variable gender will be included in the study as a control
variable. There is a significant correlation between a leader's gender on a leader's perceived
uncertainty (r = 0.22**), but there is no significant correlation between a leader’s gender and a
directive leadership style (r = 0.04).
Secondly, the amount of time the leader is interacting with team members, measured in
percentages (mean = 48.84, SD = 22.12), can have an influence on the relationship between a
directive leadership style and team performance. Johlke and Duhan (2000) found that the
amount of communication of a leader positively influences employee's performance. Pincus
(1986) also found that a leader's communication influences job performance in a positive way
and therefore this control variable will be taken into account. The results show that there is no
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correlation between the percentage of a leader interacting with team members and a directive
leadership style (r = 0.09) and team performance (r = -0.02).
At last, the third control variable is the positional tenure of the leader (mean = 5.89, SD
= 5.80). The threat-rigidity theory (Staw et al., 1981) suggests that when individuals experience
a threat, they will fall into old habits and rely on prior well-learned dominant responses.
Therefore, a leader's tenure influences the relationship between a leader's perceived uncertainty
and a leader's directiveness in a way that a leader's directiveness will be higher when the
positional tenure of the leader is higher. No significant correlations were found between leader’s
position tenure and leader’s perceived uncertainty (r = 0.10) and leader’s position tenure and
directive leadership (r = 0.15).
Besides those control variables, the model will also be checked with participative
leadership (mean = 5.51, SD = 0.54) as a mediator instead of directive leadership. The
participative leadership style is rated by employees. Participative leadership is measured with
a 6-item scale (α = 0.74) adapted from Kalshoven, Den Hartog and De Hoogh (2011). This 6-
item scale is rated on a Likert scale in which 1 means “Strongly disagree” and 7 is “Strongly
agree”. An example of a question is “{Supervisor} seeks advice from employees concerning
organizational strategy”. Appendix F includes all the items on participative leadership.
RESULTS
Descriptive Statistics and Correlations
The descriptive statistics include the mean and standard deviation of each variable. After
standardizing the scores, the relationships between the variables that are used in this analysis
are tested using the Pearson correlation. Table 1 shows the descriptive statistics of each variable
and a correlation matrix of the correlations between the variables. Notable is the negative
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correlation that can be seen between directive leadership and team performance (r = -0.21*)
because the literature found in this research assumed that there should be a positive relationship
between directive leadership and team performance (e.g. Somech & Wenderow, 2006;
Dolatabadi & Safa, 2010; Barsch et al., 2020). Also, the positive correlation between the control
variable leader's gender and the perceived uncertainty of the leader (r = 0.22**) is noteworthy
since the leader's gender is the control variable because evidence was found that leaders from
different genders perceive and handle uncertainty differently (Hellman et al., 2016; Eagly &
Johnson, 1990). It can also be seen that the leaders rate their employees quite high on their
performance since the mean of team performance which is rated by the leader is 5.90 with a
standard deviation of 0.67. An explanation for this high rating can be that leaders had to pick
their employees who participated in this study and in that way, leaders could pick the employees
who probably had the highest performance. Also notable is the lack of a correlation between
the team’s position tenure and the performance of the team (r = -0.03) because the team’s
position tenure is assumed to moderate in the model of this research (Hersey & Blanchard,
1969a; Stoker, 2008). Lastly, the results show a correlation between a leader's perceived
uncertainty and participative leadership (r = -0.18*) but they do not show a correlation between
a leader's perceived uncertainty and directive leadership (r = 0.10). This is remarkable since the
theory suggested leader’s perceived uncertainty would lead to a more directive leadership style
(Griffin et al., 2007; Hogg & Adelman, 2013).
Table 1
Descriptive Statistics and Correlations
Variables M (SD) 1 2 3 4 5 6 7 8
1. Leader’s perceived uncertainty 3.58 (1.08) 1.00
2. Team’s performance 5.90 (0.67) -0.05 1.00
3. Directive leadership 3.73 (1.01) 0.10 -0.21* 1.00
4. Team’s position tenure 4.63 (3.74) 0.10 -0.03 0.02 1.00
5. Leader’s gender 1.30 (0.46) 0.22** 0.13 0.04 -0.02 1.00
6. % of interacting with team 48.84 (22.12) -0.04 -0.02 0.09 -0.08 0.12 1.00
7. Leader’s position tenure 5.89 (5.80) 0.10 -0.14 0.15 0.40** -0.08 -0.23* 1.00
8. Participative leadership 5.51 (0.54) -0.18* 0.13 -0.24** -0.20* 0.04 0.04 -0.17 1.00
Notes. N = 128. Correlation is significant at the 0.05 level (2-tailed). * p < 0.05, ** p < 0.01. For gender, 1 = male and 2 = female.
20
Hypotheses Tests
To test all four hypotheses, a moderated mediation analysis was conducted using the
SPSS Macro PROCESS by Hayes (2018). For this moderated mediation, PROCESS model 14
was used, Appendix G shows a figure of this model. For the X variable, the leader's perceived
uncertainty is used. The Y variable is the performance of the teams. The M variable is the
mediator in this model, which is the directive leadership style and the W variable is the
moderator in this model which is the team's position tenure. Also, the control variables of
leader's gender, leader's percentage of interacting with employees and the leader's position
tenure are added.
Table 2
Results for Moderation Mediation Analysis
B (SE) 95% CI p-value R2
Outcome variable: Directive leadership 0.009
Leader’s perceived uncertainty 0.10 (0.09) -0.08, 0.27 0.29
Outcome variable: Team performance 0.05
Leader’s perceived uncertainty -0.02 (0.09) -0.19, 0.16 0.86
Directive leadership -0.21 (0.09) -0.38, -0.03 0.02
Team’s position tenure 0.02 (0.09) -0.19, 0.16 0.85
Directive leadership x Team’s position tenure 0.05 (0.09) -0.12, 0.23 0.60
Index of moderated mediation 0.01 (0.01) -0.02, 0.04
Notes. N = 128. Results based on 10,000 bootstrap samples. Based on PROCESS model 14 of Hayes
(2018).
Table 2 shows the outcomes of the SPSS PROCESS model 14 to test the moderated
mediation hypotheses (Hayes, 2018). It can be seen that there is one statistically significant
relationship in this model between directive leadership and team performance (B = -0.21, SE =
0.09, p = 0.02). However, as also can be seen in table 2, this relationship between directive
leadership and team performance is a negative relationship, which is against the hypothesized
positive relationship that was suggested in hypothesis 3. As shown in Table 2, there is no
statistically significant relationship between a leader's perceived uncertainty and directive
leadership (B = 0.10, SE = 0.09, p = 0.29). Also, there is no significant evidence for a
moderating effect of a team’s position tenure on the relationship between directive leadership
and team performance (B = 0.05, SE = 0.09, p = 0.60). Lastly, the index of the moderated
21
mediation model (B = 0.01, SE = 0.01) is 0.01 which suggests that there is an insignificant
effect on the moderated mediation model supposed in this paper. This means that the
moderation mediation model as proposed in this paper should be rejected.
Three control variables as proposed in the methods will be used to control if those
variables would influence the outcomes of the study. We will control for all of the control
variables in the model, which are the leader's gender, the leader's percentage of time interacting
with employees and the leader's position tenure because the literature suggests that those have
an influence on this model. PROCESS model 14 from Hayes (2018) is run again but now with
all of the control variables. Table 3 shows the results of this moderation mediation analysis.
Table 3
Results for Moderation Mediation Analysis with Control Variables
B (SE) 95% CI p-value R2
Outcome variable: Directive leadership 0.05
Leader’s perceived uncertainty 0.08 (0.09) -0.10, 0.26 0.40
Leader’s gender 0.02 (0.09) -0.16, 0.20 0.81
Leader’s % interacting with employees 0.13 (0.09) -0.05, 0.31 0.17
Leader’s position tenure 0.18 (0.09) -0.01, 0.36 0.06
Outcome variable: Team performance 0.08
Leader’s perceived uncertainty -0.05 (0.09) -0.23, 0.14 0.62
Directive leadership -0.19 (0.09) -0.37, -0.01 0.04
Team’s position tenure 0.02 (0.10) -0.17, 0.22 0.81
Directive leadership x Team’s position tenure 0.02 (0.09) -0.16, 0.20 0.80
Leader’s gender 0.14 (0.09) -0.04, 0.32 0.12
Leader’s % interacting with employees -0.05 (0.09) -0.23, 0.13 0.60
Leader’s position tenure -0.11 (0.10) -0.31, 0.09 0.26
Index of moderated mediation 0.002 (0.01) -0.02, 0.04
Notes. N = 128. Results based on 10,000 bootstrap samples. Based on PROCESS model 14 of Hayes
(2018).
After including the control variables in the model, no significant changes were seen in
the outcomes and so, the results were not meaningfully affected by the control variables of
leader’s gender, leader’s percentage of work interacting with their employees and a leader’s
position tenure.
22
Also, some robustness checks were done to check the sensitivity of the results. At first,
only teams in which 3 or more employees participated in the survey were included in the
sample, which led to an exclusion of 40 teams, so 88 leaders with their employees were left.
The results of this moderation mediation analysis are shown in Table 4 and most importantly
show a difference in the relationship between directive leadership and team performance.
Whereas the results without this robustness check showed a significant negative relationship
between the two, the results with only teams consisting of three employees or more showed no
significance (B = -0.20, SE = 0.11, p = 0.07). However, this difference in results might be due
to the decrease in sample size because a lower sample size can lead to inconclusive results
(Aron & Aron, 1994) and a decrease in sample size can affect significance levels in that there
is less significance when the sample size is lower than with a higher sample size (Royal, 1986;
Spencer, 1995; Lee & Lings, 2008).
Table 4
Results for Moderation Mediation Analysis with Robustness Check for Teams with Three or more
Employees
B (SE) 95% CI p-value R2
Outcome variable: Directive leadership 0.005
Leader’s perceived uncertainty 0.06 (0.10) -0.14, 0.26 0.52
Outcome variable: Team performance 0.06
Leader’s perceived uncertainty -0.05 (0.10) -0.25, 0.16 0.65
Directive leadership -0.20 (0.11) -0.42, 0.01 0.07
Team’s position tenure -0.10 (0.11) -0.31, 0.12 0.38
Directive leadership x Team’s position tenure -0.01 (0.12) -0.25, 0.24 0.95
Index of moderated mediation 0.00 (0.02) -0.03, 0.04
Notes. N = 88. Results based on 10,000 bootstrap samples. Based on PROCESS model 14 of Hayes (2018).
Table 5
Results for Moderation Mediation Analysis with Robustness Check Excluding Surveys Time Longer than
One Day
B (SE) 95% CI p-value R2
Outcome variable: Directive leadership 0.01
Leader’s perceived uncertainty 0.12 (0.09) -0.07, 0.30 0.22
Outcome variable: Team performance 0.06
Leader’s perceived uncertainty -0.07 (0.10) -0.26, 0.12 0.49
Directive leadership -0.20 (0.10) -0.39, 0.01 0.04
Team’s position tenure -0.07 (0.10) -0.27, 0.11 0.42
Directive leadership x Team’s position tenure -0.01 (0.09) -0.18, 0.17 0.96
Index of moderated mediation 0.00 (0.02) -0.02, 0.04
Notes. N = 114. Results based on 10,000 bootstrap samples. Based on PROCESS model 14 of Hayes
(2018).
23
Secondly, as shown in Table 5, a robustness check was done using only the data from
participants who filled in the survey within one day. By doing this, the results of the moderated
mediation analysis slightly changed but no significant differences were found.
Lastly, there will be controlled for the effect of participative leadership as a mediator in
the moderated mediation model. For this test, PROCESS model 14 from Hayes (2018) is used
again (Appendix G). The X variable is the leader's perceived uncertainty, the Y variable is team
performance, the moderator W is team's tenure and now the mediator M is participative
leadership. Results of this analysis showed that there is a statistically significant negative
relationship between a leader's perceived uncertainty and participative leadership (B = -0.17,
SE = 0.09, p = 0.05). However, no significant relationship was found in the relationship between
participative leadership and team performance (B = 0.15, SE = 0.09, p = 0.11) as was assumed
by the theory on directive and participative leadership. Moreover, this nonsignificant
relationship is slightly positive, which differs from the relationship between directive leadership
and team performance, which is shown to be significantly negative. Overall, the moderated
mediation model including participative leadership as a mediator also did not show a significant
effect.
Table 6
Results for Moderation Mediation Analysis with Participative Leadership as Mediator
B (SE) 95% CI p-value R2
Outcome variable: Participative leadership 0.03
Leader’s perceived uncertainty - 0.17(0.09) -0.39, -0.00 0.05
Outcome variable: Team performance 0.03
Leader’s perceived uncertainty 0.01 (0.10) -0.18, 0.20 0.90
Participative leadership 0.15 (0.09) -0.04, 0.34 0.11
Team’s position tenure 0.02 (0.09) -0.20, 0.16 0.84
Participative leadership x Team’s position tenure 0.10 (0.09) -0.26, 0.07 0.25
Index of moderated mediation 0.02 (0.02) -0.02, 0.06
Notes. N = 128. Results based on 10,000 bootstrap samples. Based on PROCESS model 14 of Hayes
(2018).
24
DISCUSSION
The current study aimed to answer the research question ´To what extent does the
leader´s perceived uncertainty influence team performance?’ This study was aiming to
contribute to the literature by researching the uncertainty the leader perceives during times of
crisis, rated by the leader itself. Results showed that leaders did perceive a moderate amount of
uncertainty during the COVID-19 crisis in which the study was conducted. Secondly, also the
employee outcomes during a crisis were taken into account and this study showed that there
was no significant relationship between a leader's perceived uncertainty and team performance.
Overall, this study did not find evidence for the proposed moderated mediation model as shown
in Appendix A. Only hypothesis 3 showed a significant relationship, however, this relationship
is a negative relationship instead of the positive relationship that was expected between
directive leadership and team performance. Since there were no relationships found in the other
hypothesized relationships, it can be concluded that there is no evidence for the influence of a
leader's perceived uncertainty on team performance.
The first finding that the perceived uncertainty of a leader does have no significant
relationship to team performance contradicts the findings in the literature review (Vessey et al.,
2011; Boxall & Purcell, 2016). It was expected that leadership would influence team
performance (Nguyen et al., 2020) and that leader’s perception during a crisis is an important
influence on this performance (Vessey et al., 2011). Besides, building on the contingency theory
of Fielder (1971b, 1978), the effectiveness, and so the performance of its followers, would
depend on the situation the leader is in. The current research does not show evidence that the
situation of the leader influences team performance.
25
Theoretical Implications
The current study builds on existing literature and made some theoretical implications.
At first, drawing on the threat-rigidity theory of Staw et al. (1981) and the research of Stoker et
al. (2019), this paper found no support for the proposed relationship between leader’s perceived
uncertainty and directive leadership. However, when the model was tested with participative
leadership as a mediator instead, a significant relationship was found. This finding is actually
in line with the threat-rigidity theory of Staw et al. (1981). The difference in the findings
between participative leadership and directive leadership can be explained by cultural power
distance. Power distance refers to how social relationships in society take form and whether
they are perceived to be hierarchical and unequal (Hofstede, 1980). The Netherlands and
Germany are countries with low power distance, China and Brazil are countries with higher
power distance. Stoker et al. (2019) found in their research that there is a difference in countries
with more power distance compared to countries with less power distance in the increase in
directive leadership during a threat. Staw et al. (1981) suggest that leaders fall back into their
well-known behaviour when confronted with a threat and for cultures with lower power
distance, this well-known behaviour will be less directive than for cultures with higher power
distance. Since most of the participants in this research are Dutch (67.2%), the expected
increase in directive leadership coming with a threat is expected to be lower according to the
study of Stoker et al. (2019). So, the threat-rigidity theory of Staw et al. (1981) is still supported
by the results found in the current research.
Secondly, this study has implications for the ongoing debate about the directive
leadership style and the participative leadership style building on the path-goal theory of House
(1971). The current study did find evidence for a negative correlation to exist between directive
leadership and team performance, which is opposing the theory found in the literature review
(Somech & Wenderow, 2006; Li et al., 2018). When the model was tested with participative
26
leadership, the relationship now was insignificant and slightly positive. The negative effect that
has been shown of directive leadership on team performance can be explained by the difference
in methodology of several studies. Researchers that used an experimental setting for their study
found a positive relationship between directive leadership and team performance (Sanchez-
Manzanares et al., 2020; Lorinkova et al., 2013). However, studies that used a questionnaire
did find a negative correlation (Somech and Wenderow, 2006; Stoker et al., 2019; Stoker,
2008). Questionnaires do research the variables in real-life settings while experimental studies
do simulate real-life settings. A common criticism of experimental studies is that the results
often do have low external validity and so it is questionable whether the results are generalizable
to other situations in real life (Lee & Lings, 2008). This difference between questionnaire
studies and experimental studies can be an explanation for the negative relation found in the
current study.
Another explanation for the finding that directive leadership has a negative influence on
team performance, whereas participative leadership does not have this negative relationship,
can be found in the cultural dimensions of Hofstede (1980). Wang and Guan (2018) found in
their study that the positive relationship between directive leadership and employee
performance is enhanced with higher levels of power distance. Newman and Nollen (1996)
found in their study to work units in European and Asian countries that in cultures with low
power distance, performance was higher when employees could participate in the decision-
making process, whereas in cultures with high power distance less participation in the decision-
making process was increasing the performance. Studies to directive leadership and
performance in the current literature review were mostly conducted in countries with higher
power distance (e.g. Li et al., 2018; Zheng et al., 2021), while studies that found a negative
relationship were conducted in lower power distance countries (Stoker et al., 2019). So, the
27
results of the current research could be due to the fact that this study mostly contained Dutch
participants which is a lower power distance culture.
A third implication for the current literature is that the current findings contradict the
situational leadership approach of Hersey and Blanchard (1969a). The suggestion of this
situational leadership approach that employees with less positional tenure need more guidance
through directive leadership to get better performance is not supported by the current research.
It also contradicts the findings of Stoker (2008) but an explanation for that can be that her study
was conducted in self-managing teams whereas the current research is conducted in teams that
do have a leader. So, this difference in setting can be an explanation for the lack of a moderating
effect in this model.
Practical Implications
The findings of this research also have some implications for practitioners, especially
leaders and their teams. At first, this study showed that the perceived uncertainty of a leader
during crises does not necessarily have a negative influence on team performance. In practice,
this means that for employees, the work environment and perceptions of the leader are not of
great importance and therefore, management does not need to emphasize this. Secondly, this
study showed that when leaders have a directive leadership style, this can have a negative
influence on the performance of teams, whereas participative leadership did not have this
negative relationship with team performance. Leaders should be aware of this finding and top
management should take care of the coaching of leaders in their leadership behaviours. At third,
this implication is not only found in teams with a longer tenure but also in teams with a lower
tenure and therefore leaders should not distinguish their leadership style based on the tenure of
teams, which was suggested by the situational leadership approach (Hersey & Blanchard,
28
1969a). This study shows that leaders should reconsider using a leadership style based on the
tenure of the team.
Limitations and Directions for Future Research
This study also has some limitations. At first, the leaders who participated in this study
could choose 3 to 10 employees from their team to also fill in the questionnaire. Because leaders
could choose the employees themselves, they were able to choose the best performing
employees or the employees with whom they have a better relationship and would probably
give them better ratings on the questionnaire. This could influence the credibility of the current
study, which is also seen in the results where the teams score an average of 5.90 on a scale from
1 to 7 on team performance. Therefore, it is suggested that future research should include the
whole team of the leader in their research and then take a random sample from the employees
of this team to participate in the research.
Secondly, this study used a 5-item scale for the measurement of uncertainty which had
a low internal consistency. To better study the effects of uncertainty during a crisis on
leadership, it is recommended for future research to use another questionnaire for uncertainty
based on the 3 items that were used in this study, which are the three items based on the response
uncertainty definition of Milliken (1987). In this way, the internal consistency will be enhanced
and the research will become more reliable.
At third, the sample that was used in this study is mostly European teams. This can be a
limitation but it is also a strength that this study contains participants from multiple countries.
However, to be able to generalize the results of this research, the study should be repeated in
different countries in other continents of the world.
29
Conclusion
This thesis aimed to research the influence that a leader's perceived uncertainty has on
team performance. The theory suggested that a directive leadership style would mediate the
relationship between a leader's perceived uncertainty and team performance and that team
tenure would moderate the relationship between a directive leadership style and team
performance. However, the results of this study did not find evidence for the proposed
moderated mediation model as shown in Appendix A. One significant negative relationship was
found between directive leadership and team performance, whereas the literature has suggested
that this would be positive. A positive relationship was found between a leader's perceived
uncertainty and participative leadership. The current research did not find evidence for the
expected relation between a leader's perceived uncertainty and team performance. These
findings support the threat-rigidity theory of Staw et al. (1981), but they have not found support
for the situational leadership approach of Hersey and Blanchard (1969a). Leaders should be
aware of the finding that a directive leadership style has a negative influence on team
performance. Building on these findings, a possible explanation for the difference in the study
results and the existing literature could be that the sample size mostly contains countries with
low power distance and so directive leadership is not the well-known behaviour leaders fall
back to when facing a threat.
30
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APPENDICES
Appendix A: Hypothesized Model
Appendix B: Leader’s Perceived Uncertainty
Perceived controllability/uncertainty regarding COVID-19 (Thomas, Clark, & Gioia, 1993)
Take a moment to think about COVID-19, and how this crisis has affected your work at
{Organization}. Looking at the future, how do you think COVID-19 will affect you and your
work within your organization? Please indicate the extent of your agreement with the
following statements.
To which extent do you…
1
Not at all
2
To a small
extent
3
To some
extent
4
To a
moderate
extent
5
To a good
extent
6
To a great
extent
7
To a very
great
extent
o Have a choice about whether or not to address the situation?
o Feel you have the capability to address the situation?
o Feel you can manage the situation instead of the situation managing you?
o Be constrained in how you could interpret the situation?
o Feel that how the situation is resolved will be a matter of chance?
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Appendix C: Employee’s Performance
We now ask you some questions about the employees in your team. Again, we would like to
stress that your answers to these questions will be treated with confidentiality.
Performance (Wayne, Shore, & Liden, 1997)
Please indicate your agreement or disagreement with each statement about {Employee}.
1
Strongly
disagree
2
Disagree
3
Somewhat
disagree
4
Neither
agree or
disagree
5
Somewhat
agree
6
Agree
7
Strongly
agree
o {Employee} performs his/her job as I like to see it performed
o {Employee} gets his/her work done in an effective manner
o {Employee} generally performs well in his/her job
Appendix D: Directive Leadership Style
Directive leadership style (Stoker, Garretsen, & Soudis, 2019)
Please indicate the extent to which you agree with the following statements.
1
Strongly
disagree
2
Disagree
3
Somewhat
disagree
4
Neither
agree or
disagree
5
Somewhat
agree
6
Agree
7
Strongly
agree
o {Supervisor} expects employees to follow his/her instructions precisely.
o {Supervisor} requires employees to submit detailed reports of their activities.
o {Supervisor} makes most decisions for employees.
o {Supervisor} supervises employees very closely.
o {Supervisor} expects employees to carry out instructions immediately.
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Appendix E: Employee’s Tenure in Current Position
Tenure in current position
While working for {Organization}, how long have you worked in your current position? (in
years)
Appendix F: Participative Leadership Style
Please indicate the extent to which you agree with the following statements.
1
Strongly
disagree
2
Disagree
3
Somewhat
disagree
4
Neither
agree or
disagree
5
Somewhat
agree
6
Agree
7
Strongly
agree
o {Supervisor} allows employees to influence critical decisions.
o {Supervisor} does not allow others to participate in decision making.
o {Supervisor} seeks advice from employees concerning organizational strategy.
o {Supervisor} will reconsider decisions on the basis of recommendations by those who
report to him/her.
o {Supervisor} delegates challenging responsibilities to employees.
o {Supervisor} allows me to play a key role in setting my own performance.
Appendix G: PROCESS model 14 (Hayes, 2018)
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