transformational leadership influences on employee trust and

TRANSFORMATIONAL LEADERSHIP INFLUENCES ON EMPLOYEE TRUST AND SATISFACTION IN A

SURINAME CONTEXT THE CASE OF CKC BEM

BY

Marlegravene A Amelo

(SURINAME)

This paper was submitted in partial fulfillment of the requirements for the Masters of Business Administration (MBA) degree at the Maastricht School of Management (MSM) Maastricht the Netherlands July 2005



BY


(SURINAME)

This paper was submitted in partial fulfillment of the requirements for the Masters of Business Administration (MBA) degree at the Maastricht School of Management (MSM) Maastricht the Netherlands July 29 2005 Maastricht School of Management FHR Lim A Po Institute For Social Studies POBox 1203 POBox 12340 6201 BE Maastricht Paramaribo The Netherlands Suriname July 2005

Marlegravene Amelo MBA-Intake-1 2003 MsMFHR Lim A Po Institute

ldquoCourage - not complacency - is our need today Leadership ndash not salesmanshiphellip ldquo

John F Kennedy

Marlegravene Amelo MBA-Intake-1 2003 MsMFHR Lim-A-Po Institute

DEDICATIONS

This thesis is dedicated to the memory of my father Harry Egbert Amelo who practiced life-

long learning and instilled in me a strong work ethic as well as a belief in myself and my

capabilities I wish he was here to enjoy this achievement

To my life-companion Rolf de Jong for his unconditional support love and care during my

ldquoschool yearsrdquo (which turned out to be longer than we had anticipated)

To Raoul Ray and Jeieumll my sons who have always believed in me and supported me in

everything I attempt

ACKNOWLEDGEMENTS

A number of people have contributed to the completion of this thesis and I wish to acknowledge

my gratitude for their support Firstly and most importantly I acknowledge and thank my

supervisor Professor Dr Beatrice IJM van der Heijden for her assistance advice and

encouragement Her punctual and characteristic feedback stimulated me greatly In the truest

sense of the word Beate has been a mentor and I thank her for guiding me during a journey of

personal and professional development

For support and advice when I encountered statistical problems I am indebted to Mr Ivan

Sno and Mr Gerold van Dijk for their time and resilience in explaining what sometimes seemed

inconceivable Sincere thanks goes to Vanessa Goedschalk for sharing her expertise in using the

SPSS program Aishel Bradley thanks for assisting in formatting this document Mrs Shirley

Asjes made this a legible English document Thank you for your insights Furthermore I would

like to thank the organization that took part in the study CKC BEM This thesis could not have

eventuated without the support of the leadership and staff alike Thank you for sharing your

insights feelings attitudes and concerns with me I hope that the findings of this study will

contribute at least in some small way to a more fulfilling working life

I would also like to express my gratitude to all my colleagues of MBA-Intake-1 at FHR

Lim A Po institute for their sharing and caring all through the course of the study

My dear friends Ivan and Dulcie Graanoogst were invaluable in keeping my spirits up

throughout this process I am also grateful for the motivational talks from my friends Truus and

Jessica Schaap Carla Lamsberg your prayers strengthened my heart I was truly fortunate to

have a great family and friends who supported me throughout the study It is impossible to list

everyone but I extend my heartfelt thanks to each and every one of them

Last but never least I must acknowledge the extraordinary support and encouragement

that was demonstrated in so many ways by Hans Lim A Po LLM Dr Howard Nicholas Ollye

Chin A Sen MA the Course Director and Ms Alida Pengel the Course Assistant

Hans bringing the renowned MsM-MBA program to Suriname was truly visionary You

are a true transformational leader My heartfelt thanks I foremostly thank the Divine Essence of

the Cosmic for the sustained infusion of my being all through the years


Marlegravene Amelo MBA-Intake-1 2003 iii MsMFHR Lim-A-Po Institute

TABLE OF CONTENTS DEDICATIONS i ACKNOWLEDGEMENTS ii TABLE OF CONTENTS iii LIST OF TABLES vi LIST OF FIGURES vii LIST OF ABREVIATIONS viii LIST OF APPENDIXES ix ABSTRACT x 1 THE PROBLEM AND ITS SETTING 1

11 Introduction 1 12 Definition of the Problem 1 13 Research Questions 3 14 Objectives of the Research 315 Significance of the Study 4 16 Methodology and Scope of the Study 4 17 Organization of the Study 5 18 Constraints of the Study 6

2 MACRO AND MICRO CONTEXT 7

21 Introduction 722 Country Background 7 9221 Leadership23 The Concrete Construction Sector 924 CKC BEM 11 12241 Current Organization

122411 Organization Vision 132412 Infrastructure 152413 Management Philosophy 172414 Communication Flow 182415 Incentive Program 182416 Opportunities and Threats

25 Summary 19 3 LITERATURE REVIEW 20

31 Introduction 20 32 Definition of Main Concepts Used 21 21321 The concept of Leadership 21322 The concept of Transformational Leadership 22323 The concept of Trust 22324 The concept of Job Satisfaction33 Approaches to Leadership 23

34 New Leadership Theories 24 24341 The Full-Range Leadership Theory 26342 Transformational Leadership 29343 Transactional Leadership 30344 Laissez-Faire Leadership35 Trust in Organizations 30 31351 Dimensions of Trust in Organizations 32352 Bases of Trust in Organizations 33353 Leadership Style and Trust36 Leadership Behavior and Employee Trust 33 37 Leadership style and Employee Satisfaction 35 38 Summary 36

4 CONCEPTUAL FRAMEWORK 38

41 Introduction 38 42 Hypothesis 39 43 Implementation of Conceptual Model 40 44 Summary 40

5 RESEARCH METHODOLOGY 42

51 Introduction 42 52 Research Hypothesis 42 42521 Independent Variable 43522 Dependent Variables 44523 Influence53 Research Design 44 54 Data Collection 45 55 Data Analysis 48 56 Validity and Reliability 49 49561 Construct Validity 49562 Internal Validity 50563 External Validity 50564 Reliability57 Summary 50

6 RESULTS 52

61 Introduction 52 62 Study Findings 52 52621 Research Question 1

536211 Results of the MLQ 55622 Research Question 2

556221 Leadership Style 55623 Research Question 3

566231 Results of Trust 56624 Research Question 4

Marlegravene Amelo MBA-Intake-1 2003 iv MsMFHR Lim A Po Institute

566241 Results of Job Satisfaction

63 Discussion of findings 57 64 Summary 59

7 CONCLUSIONS AND PRACTICAL IMPLEMENTATION 60

71 Introduction 60 72 Contribution of the Current Study 60 73 Summary and Conclusions 61 74 Recommendations 63 75 Implications for Management 64 76 Implementation 65 65761 Making Changes

667611 Organizational Structure 677612 Managerial Principles 677613 Incentive Program 687614 Training and Development 687615 Implementation Strategy

77 Limitations of the study 68 78 Directions for further Research 69

SELECTED BIBLIOGRAPHY i APPENDIX A MAPS xii APPENDIX B ORGANIZATIONAL HIERARCHY CKC BEM xv APPENDIX C CASE STUDY DETAILS xvi APPENDIX D SURVEY RESULTS xxiv

Marlegravene Amelo MBA-Intake-1 2003 v MsMFHR Lim A Po Institute

LIST OF TABLES Table 1 Operating results CKC - BEM 1998 - 2001 11 Table 2 Threats and Opportunities 19 Table 3 Summary of Leadership Approaches 23 Table 4 Cronbach alphas for Transformational Leadership Trust and Job Satisfaction 51 Table 5 Descriptive Statistics MLQ 53 Table 6 Correlation between Transformational Leadership and the Performance Outcomes 54 Table 7 Correlation between Transactional Leadership and the Performance Outcomes 55 Table 8 Descriptive Statistics Trust 56 Table 9 Correlations Between TL and TXL and Trust 56 Table 10 Descriptive statistics Job Satisfaction 57 Table 11 Correlations between TL and TXL and Job Satisfaction 57

Marlegravene Amelo MBA-Intake-1 2003 vi MsMFHR Lim A Po Institute

LIST OF FIGURES Figure 1 Structure of the Thesis 6 Figure 2 Staff composition CKC BEM 1998 - 2004 14 Figure 3 Sick leave progress 1999 - 2004 14 Figure 4 Concrete Tube Production 1998 - 2004 16 Figure 5 Concrete Stones Production 1998 - 2004 17 Figure 6 Optimal and Sub-optmal model of Range of Leadership model 25 Figure 7 Leadership factors in the augmentation model of Transactional and Transformational

Leadership 30 Figure 9 Conceptional Framework 39 Figure 10 Staff distribution by Gender 47 Figure 11 Staff distribution by Age 47 Figure 12 Total staff distribution CKC BEM 47 Figure 13 Staff distribution by Number of Years Employed 48 Figure 15 Galbraiths Star Model 64

Marlegravene Amelo MBA-Intake-1 2003 vii MsMFHR Lim A Po Institute

LIST OF ABREVIATIONS ABS - Algemeen Bureau voor Statistiek ASTM - American Society for Testing Materials CARICOM - Caribbean Community amp Common Market CEO - Chief Executive Officer CKC BEM - C Kersten amp Co Bouwmaterialen Exploitatie Maatschappij CR - Contingent Reward

CSME - Caribbean Single Market amp Economy ed - edition EIU - Economist Intelligence Unit GDP - Gross Domestic Product IA - Charisma or Idealized Influence (Attributes) IB - Idealized Influence (Behavior) IC - Individualized Consideration IM - Inspirational Motivation IS - Intellectual Stimulation ISO - International Organization for Standardization LDC - Least Developed Countries LF - Laissez-Faire or Non-leadership MBA - Master of Business Administration MBE-A - Management by Exception Active MBE-P - Management by Exception Passive MDC - Most Developed Countries MLQ - Multifactor Leadership Questionnaire N - North NEN - Nederlandse Norm OECS - Organization of Eastern Caribbean States p - page PPP - Purchasing Power Parity RQ - Research Questions SPSS - Statistical Package for the Social Sciences sq km - square kilometers TL - Transformational Leadership TXL - Transactional Leadership UNDP - United Nations Development Program W - West WTO - World Trade Organization

Marlegravene Amelo MBA-Intake-1 2003 viii MsMFHR Lim A Po Institute

LIST OF APPENDIXES Appendix A Maps A-1 Map of Suriname A-2 Map of the Caricom States Appendix B Organizational Hierarchy CKC ndash BEM Appendix C Case Study Details C-1 Interview Question C-2 Case Survey Questionnaires-covering letter C-3 Multifactor Leadership Questionnaire and Scoring Key C-4 Trust Questionnaire and Scoring Key C-5 Job Satisfaction Questionnaire and Scoring Key Appendix D Survey Results D-1 Frequency Distribution MLQ D-2 Frequency Distribution Trust D-3 Frequency Distribution Job Satisfaction D-4 Reliability Analysis MLQ D-5 Reliability Analysis Trust D-6 Reliability Analysis Job Satisfaction D-7 Pearsonrsquos Correlation tests

Marlegravene Amelo MBA-Intake-1 2003 ix MsMFHR Lim A Po Institute

ABSTRACT

Whether organizations succeed or fail depends for a large part on leadership Transformational

leadership is assumed an indispensable element in the process of initiating and sustaining change

and development in organizations

CKC BEM a viable but financially burdensome company in a vital production sector of

the Surinamese economy is the subject of the study After consecutive years of heavy losses and

a number of leadership changes a new CEO was appointed who introduced a different

leadership style Although necessary investments remained forthcoming production increased

and sick leave decreased however recent developments indicate that it seems as if employees are

gradually losing confidence

Adopting a single multi-modal case study approach using both qualitative and

quantitative data the researcher reviewed the prevailing literature on Transformational

Leadership Trust and Job Satisfaction

Using Bass and Avoliorsquos model (2004) the conceptual framework postulated a

relationship between Transformational Leadership and the other constructs The researcher

hypothesized a positive relationship between the independent (TL) and dependent (trust and job

satisfaction) variables and examined whether CKC BEM was practicing Transformational

Leadership and then sought to determine whether this leadership style influenced trust and

satisfaction within the organization

Primary research comprising of unstructured interviews with the CEO and the

management team were carried out Using paper and pencil questionnaires data collection for

the case study survey was carried out among the mid-level managers as well as the management

team and the general staff

Transformational leadership was assessed by the Multi-factor Leadership Questionnaire

(MLQ) The trust scale instrument from Ciancutti and Steding was used to assess and measure

the multiple facets of trust Satisfaction was measured using the Schriesheim and Tsui Job

Satisfaction instrument and the survey analysis was conducted using the Statistical Program for

Social Sciences

Marlegravene Amelo MBA-Intake-1 2003 x MsMFHR Lim A Po Institute

Findings from the interviews and the MLQ supported the Transformational leadership

style and are consistent with those of Bass and Avolio Given the high scores it was apparent that

the Transformational Leadership style has proven successful in this company as far as

interpersonal relationships are concerned The results also imply that within CKC BEM this

leadership style complements the Transactional style

The findings on Trust and Job Satisfaction however were indicative of the existing

organizational situation No significant correlation was found between the Transformational

Leadership style and Job Satisfaction and a negative although insignificant correlation was

found between the Leadership style and Trust The researcher postulated that these results could

be explained by frequent changes in CEOs and the employeesrsquo up-surging disbelief in the

continuity of the company which was caused by the Holding companyrsquos hesitation to invest in

resources and the resulting lack of equitable rewards

Although the hypothesis could not be supported in this study the insight has been gained

that through the transformational leadership style exerted by the CEO he is well appreciated by

the followers who expressed appreciation for his attempts at improvement as well as his

commitment to treat employees in a sensitive and considerate manner They expressed trust in

the person of the CEO In fact the researcher inferred that the trust in the CEO is such that it

mitigates the harmful effects of the distrust in the intentions of the holding company

The main conclusion that can be drawn from this case is that however important it is to

practice Transformational Leadership without the essential investments the organization will not

reach the corporate financial goals If the equipment and machinery are not functioning up to

standard it will not be possible to offer good working conditions and lasting job satisfaction

employeesrsquo trust will gradually recede

In view of the problems envisioned the researcher recommended solutions and strategies

to obtain the full benefit of Transformational Leadership through implementation of an effective

and flexible organizational design with commitment and involvement of all concerned A

prerequisite would be the necessary investments The study concluded with recommendations for

future research and practice

Keywords CKC BEM Transformational Leadership Transactional Leadership Employee

Trust Job Satisfaction

Marlegravene Amelo MBA-Intake-1 2003 xi MsMFHR Lim A Po Institute

CHAPTER 1

1 THE PROBLEM AND ITS SETTING

11 Introduction

Organizations are constantly facing rapid changes Whether caused by factors such as economic

globalization technological innovations fast product obsolescence and a changing workforce

the world economy is in the process of transforming from an industrial to a knowledge and

information focus offering ever-increasing options to customers As a result organizations are

changing to flatter and looser structures and adopting horizontal information flows In these

changing environments there is a demand for more flexible and responsive leadership

Authoritarian styles of leadership based on assumed superiority will not be effective in solving

complex problems exacerbated by an accelerating rate of change The styles of leadership

required in these changing environments will emphasize collaborative skills based on a

philosophy of participation and a sense of common purpose and shared interest Leaders will

have to be more change-oriented If these leaders develop clear visions and instill a sense of

direction in employees they will motivate and inspire employees to pursue the vision

Change in the organizational environment instilled a number of new leadership theories

one of which is transformational leadership The original formulation of the transforming

leadership theory comes from Burns (1979 paperback) Burns argues that ldquotransforming

leadership ultimately becomes moral in that it raises the level of human conduct and ethical

aspiration of both leader and led and thus it has a transforming effect on bothrdquo (p20)

Transforming leadership is people centered Burns argues that focusing on needs makes leaders

accountable to the follower

12 Definition of the Problem Given the competitive environment in the present interrelated world companies worldwide are

being forced to manage their organizations in a more globally integrated manner The world

marketplace that has emerged as a result of globalization compels companies to implement

Marlegravene Amelo MBA-Intake 1 2003 page 1 MsMFHR Lim A Po Institute

strategies to remain competitive Within industries companies develop individual strategies to be

able to cope with the changes in their environment Researchers and practitioners focus on the

importance of leadership to cope with market circumstances Top managers in Surinamese

companies face the same challenges exemplified by Surinamersquos accession to CARICOM1 which

led to increased competition in the domestic market on the one hand and at the same time they

were unable to benefit from interesting new markets on the other hand

In view of this development it is important that companies in Suriname identify a

competitive advantage Given Surinamersquos position within CARICOM organizations need to

adopt competitive strategies to cope with the changed situation of increased competition People-

centered approaches that align the human capital and the interest of the organization are an

important source of competitive advantage The unique Surinamese workforce consisting of

different cultural groups - each with its own values beliefs and attitudes - is a powerful factor to

motivate performance beyond even their own expectations In these conditions organizations can

succeed only through effective leadership Traditional transactional leadership has failed to

create the high level performance in our so-called ldquoweakrdquo companies There is a need in the

Surinamese economy to improve the performance of companies

In preparing companies to meet the competitive challenge transformational leadership is

a key factor to attain the competitive organizational goals

The researcher assumes the following hypothesis Transformational leadership will

positively influence employee trust and satisfaction within CKC BEM

The study will focus on CKC BEM industries one of the large companies in the concrete

construction sector in Suriname and investigate whether the leadership practices the

transformational leadership style and whether transformational leadership can be used as a

strategic tool to instill trust and lead to job satisfaction Additionally the study will attempt to

suggest ways to implement the findings

In the developing country Suriname given the multiplier effect of the construction

sector activities in this sector are considered an economic indicator for the development of the

1 Caribbean Community ampCommon Market (CARICOM) was formed by the Treaty of Chaguaramas in 1973 as a movement towards unity in the Caribbean


country Driven by the construction and mining sectors (EIU Country report August 2004) the

countryrsquos economic activity increased by approximately 56 in 2003 Suriname has three major

industrial producers of concrete construction stones with comparable workforces and units of

production per day CKC BEM had suffered significant losses during the five years prior to the

appointment of the present Chief Executive Officer (CEO) who was appointed four years ago

He practices transformational principles in his leadership style and it remains to be seen if his

leadership will influence the organization for the better

13 Research Questions

The research will address the following central question

Research Question (RQ) 1 What evidence exists that Transformational Leadership influences

outcome measures in an organization in a Surinamese setting

The following sub-questions will be answered

Research Question 2 How can the leadership style employed within CKC BEM best be

described

Research Question 3 Does Transformational Leadership influence employee trust within

the CKC BEM organization

Research Question 4 Does Transformational Leadership enhance employee satisfaction

within CKC BEM

14 Objectives of the Research The objectives of this study are

bull To investigate whether the CEO of CKC BEM is practicing Transformational Leadership

bull To test the implications of Transformational Leadership in a company in a Surinamese

setting

bull To examine the relationship between transformational leadership style employee trust

and satisfaction in the CKC BEM organization


bull To sustain the competencies skills and knowledge acquired during the MBA program

15 Significance of the Study

The result of the study will provide the CKC BEM Company with a more profound insight into

the mechanisms of transformational leadership Moreover the study could supply information to

the concrete construction sector for a better understanding of transformational leadership in

striving to survive and developing a competitive advantage in the changing environment of

Suriname Additionally the researcher could convey the knowledge gained to a wider range of

Surinamese companies and an array of other interested parties which engage her services as a

consultant

In view of Surinamersquos position within CARICOM local organizations need to adopt

competitive strategies to cope with the changed situation of increased competition People

centered approaches that align human capital and the interest of the organization are an

important source of competitive advantage that cannot be easily imitated In this respect the

study could also be of relevance

The authorrsquos fascination with the subject of leadership and the quest to find out what

Suriname as a nation can do to improve its position in the global marketplace served as a

stimulation to dedicate the study to one of the modern types of leadership In the authorrsquos

experience as a consultant she has met a number of Chief Executive Officers (CEOs) who

complain that they are mostly ldquofighting firesrdquo and are caught up in day-to-day business instead of

analyzing long-term opportunities and planning for organizational growth People do not act in

isolation and leaders have the opportunity to influence employees in such a way that they

develop a sense of ownership of their organization and have pride in their achievements at work

thus realizing higher organizational performance while at the same time fulfilling their own

needs

16 Methodology and Scope of the Study

The research adopts a single multi-modal case study approach The research deals with


transformational leadership one issue of critical importance to organizations in a changing

environment The scope is limited to one organization in the concrete construction sector CKC

BEM This company which is in a transition phase will be studied and analyzed The study will

cover the period 1999 ndash 2004 In 2001 a change in the top leadership of the company took place

after the company had suffered a number of consecutive years of heavy losses and low

productivity The new CEO is attempting to bring about productivity improvements by instilling

trust and enrichment of employee satisfaction through his leadership style Secondary sources of

data will be reviewed studied analyzed and evaluated Apart from an in-depth literature review

research methods will include primary research through unstructured interviews while a case-

survey using the Multifactor Leadership Questionnaire (MLQ) short form will be done to

measure Transformational Leadership and its influences on employee trust and satisfaction The

different components of the constructs trust and satisfaction will be assessed using previously

validated questionnaires rdquoWithin-case analysisrdquo will be done to analyze the interviews and

documents and the case-survey will be statistically processed and analyzed The focus of this

research will include top management influences on department heads and the organizational

levels All department heads and all workers are incorporated in the research as all are directly or

indirectly affected

15 Organization of the Study

As represented in figure 1 on page 6 Chapter one the introductory chapter incorporates the

background with the topic the problem definition and its setting the research question the

objective and significance of the research identification of the methodology and scope of the

research Chapter two introduces the macro - and micro environment and the sector of which

CKC BEM is the organization under study and describes the organizational changes Chapter

three starts with a brief description of the definitions used and further portrays the literature

review evaluates and links transformational leadership theories relating to the relevant concepts

used in the study Chapter four presents the Conceptual Framework and hypothesizes the

assumed relationship between the independent and dependent variables The resulting research

questions serve to find answers for the hypothesis Chapter five focuses on the methodological


aspects of the study wherein the author justifies the application of the case study as research

method and looks at the limitations of the applied methodology In Chapter six the results are

depicted and the gathered reviewed analyzed and interpreted data are presented and compared

with the conceptual framework of chapter four The case survey is further analyzed using the

Statistical Program for Social Sciences (SPSS) Chapter seven deals with the implications for

management and conclusions and proposes recommendations and possible strategies for

implementation The study ends with implications for further research

16 Constraints of the Study

The relatively short time interval allocated for this thesis will hamper efforts for a more

comprehensive analysis Another time-consuming impediment with respect to data collection of

Surinamese institutions and enterprises is the lack of up-to-date data needed to gather quality

data The findings of the study will provide a contingent generalization since only one company

with specific characteristics and unique circumstances is involved

Figure 1 Structure of the Thesis

Source Author


CHAPTER 2

2 MACRO AND MICRO CONTEXT

21 Introduction

In this chapter the Surinamese background is described from the perspective of CKC BEM as a

company in the concrete construction material sector The chapter further presents an

organizational overview and analysis of CKC BEM plus the threats and opportunities which this

environmental perspective provides are discussed

22 Country Background

Suriname gained independence from The Netherlands on 25 November 1975 the official name

being Republiek Suriname The geographic coordinates are 4 00N 56 00W (See Appendix A-

1) Suriname is bordered in the North by the Atlantic Ocean and is located between French

Guiana and Guyana its southern neighbor is Brazil The total area is 163270 sq km of which

161470sq km is land and 1800sq km is water which makes Suriname the smallest country on

the South American continent and the only country on this continent where Dutch is the official

language Because of the small but multi-ethnic population2 (ABSCensuskantoor 200501

Voorlopige Resultaten Zevende Algemene Volks-en Woningtelling in Suriname) and the number

of languages and dialects spoken and given the harmonious way the citizens live together the

nation is also typified as the ldquoLittle United Nationsrdquo Suriname has a relatively small mining-

based economy highly dependent on exports and imports although the export basket is very

limited According to World Bank reports 70 of the population lives below the poverty line

however Suriname is classified as a mid-income country with a GDP per capita of US$ 153800

( PPP US$352400) The bauxite industry is the backbone of the economy and accounts for

more than 15 of GDP and 70 of export earnings The Government accounts for 17 of GDP

with manufacturing contributing 89 to GDP and Construction 69 It is estimated that the

informal sector (mostly small-scale gold mining) represents some 20 of GDP while agriculture

contributes 9 to GDP (EIU country report August 2004)

2 Hindustani 37 Creole 31 Javanese 15 Maroons 10 Amerindians 2 Chinese 2 White 1 Other 2


Another study done by the World Trade Organization (WTO) secretariat revealed that

Suriname ldquoexperienced the 13th highest volatility of output among 143 WTO members as a

result of fluctuations in the world market price of alumina measured by the standard deviation of

per capita GDP growth ratesrdquo (WTO document WTCOMTDSEW5 23 October 2002) and

also as a result of Surinamersquos ldquopoor macro-economic management recordrdquo Another WTO study

argues that ldquoquality of institutions is fundamental in distinguishing small countries that succeed

from those that do notrdquo (WTO document WTCOMTDSEW4 23 July 2002) In view of the

new Dutch Government policy regarding Surinamersquos poor economic management of Dutch aid

Suriname will have to become less dependent on Dutch aid and integrate more into the region

(EIU Country report August 2004)

Suriname joined the CARICOM on June 29 1995 as its 14th member CARICOM (See

Appendix A-2) consists of fifteen highly differentiated groupings of countries ranging from the

mini-economic union of the Organization of Eastern Caribbean States (OECS) comprising of the

islands Antigua and Barbuda Dominica Grenada Montserrat St Kits and Nevis St Lucia and

St Vincent and the Grenadines to the more developed states (MDC) such as Barbados Guyana

Jamaica Suriname and Trinidad and Tobago The MDCs depend on primary export such as

petroleum (Trinidad and Tobago) bauxite and alumina (Jamaica Suriname and Guyana)

Trinidad is the lead manufacturer in the region Belize and Haiti constitute the least developed

countries (LDCs) of the region Although initially established to facilitate cooperation in foreign

policy external trade and intra-regional trade CARICOM has been on a mission to transform

itself into a single market and economy (CSME) since 1993 However because trade within the

region is less than 15 of total trade liberalization poses significant hurdles for economic and

social development in the region

Joining CARICOM was inspired by the reality that supranational and transnational forces

and organizations increasingly affect and lessen the ability of individual states to control events

in their economic system The consequence for small (Caribbean) states is that they become

increasingly more vulnerable In that respect a body like CARICOM could serve to achieve the

goal of decreasing the vulnerability of the individual state Suriname However Surinamersquos

accession to CARICOM has had serious consequences for local companies Not only were


Surinamese companies ill-prepared and as a result experienced immediate increased competition

in the domestic market but the Surinamese government also had omitted to ensure an enabling

environment where all companies could exercise their rights for the beneficial use of the

enlarged market

221 Leadership

Historically Suriname has been known for multi-party multi-ethnic governments that have

thrived on patronage and an intricate balance of power system The leadership style could be

characterized as transactional Decision making happens by default According to the Human

Development Report 2002 of the United Nations Development Program (UNDP) Suriname has

moved from the 65th to the 74th place as regards human development and functioning of

democratic institutions At the same time Surinamersquos position within CARICOM after ten years

of membership is characterized as technically disadvantageous compared to other member states

A comparison based on the Country watch report (2004) of GDP Current Exchange Rate method

as well as Purchasing Power Parity (PPP) method reports that of the CARICOM member states

Barbados and Trinidad and Tobago rank highest and Suriname lowest even after Guyana

Given the challenges the country faces as a result of globalization and intensified competition

and at the same time decreasing development aid combined with the modern problems of illegal

drug trafficking and increasing related crimes a transforming style of leadership is demanded It

is obvious that solutions to these and emerging problems will require a multidisciplinary

approach and a new type of leadership in which private sector organization leaders could play a

vital role (Brana ndash Shute Leadership in the Caribbean Working Papers)

23 The Concrete Construction Sector

The concrete construction sector contributes 89 to GDP Two factors play an important role in

this sector namely housing construction and infrastructural works As a result of its multiplier

effect and the derived demand which is largely dependent on developments in housing

construction and infrastructural works the sector is considered an indicator of economic


growth The concrete construction industry is typified by capital intensive production facilities

and integrated operations

As a result of very difficult access to factual information only a concise analysis of the

sector as will follow

The sector comprises three major producers of concrete construction material These

companies offer the whole range of concrete constructions products according to NEN3 and

ASTM4 standards and are considered competitors Concrete solid 4rdquo5 and 6rdquostones determine the

majority of the turnover of these companies Practical experience has proven that the solid 4rdquo and

6rdquo stones have a pull function for related construction products such as sand stones and

reinforcing bars The major production equipment of each of these companies is the BESSER6

machine which is considered the ldquoRolls Roycerdquo amongst the stone-producing machines

(Werkgroep Betonsector CKersten amp CO NV 2004) The three producers have an average

daily production of 75000 solid 4rdquo stones with CKC BEM having the lowest production output

as a result of decreased capacity The second largest producer has recently invested in new

production units which will threefold not only its production capacity but the quality as well to

the level of CKC BEM who so far was considered to produce superior quality stones Another

phenomenon is the emergence of a number of sizeable and less sizeable producers7 of a limited

number of products mainly 4rdquo stones of lesser quality Typically the smaller home craft style

producers operate small flexible machines and have an average daily production of 1000 - 4000

stones of limited assortment usually restricted to building stones poles decorating stones andor

tubes The most recent market entry is of a number of foreign (Chinese) concrete construction

companies of which no data is available so far

Given the changing market environment it is imperative that the leadership of the

concrete construction companies determine a strategy to cope with the challenging situation

3 A Dutch quality standard 4 An American standard 5 Solid 4rdquo and 6rdquo are the measurements of the fast movers among the stones 6 Brand name for the stone producing machine 7 Ten new producers emerged with an average daily production of 4000 stones and about 50 smaller producers with a daily average of 1000 stones


24 CKC BEM

CKersten amp Company NV (CKC) was established in 1768 by the Moravian Church It is the

oldest business company in Suriname and one of the oldest in the western Hemisphere Until

1998 CKC had a centralized decision-making policy In 1998 the company was structured into

eleven operational companies in the trade services and production sector of which CKC

Bouwmaterialen Exploitatie Maatschappij NV (CKC BEM) became an operating company in

the concrete construction sector (C Kersten amp Co Holding Company) For more than fifty years

CKC BEM8 has been the producer and supplier of a variety of concrete products such as concrete

building stones pavement stones sewer systems tubes sand stones and reinforcing bars The

company is well established in the Surinamese society

As a result of the financial crisis of the 1980s and the recession of the 1990s CKC BEM

had been suffering heavy financial losses In early 2000 the condition of the machines and other

equipment was such that there was dire need of re-investment in capital equipment a situation

which affected optimal production The overall situation could be characterized as urgently

requiring substantial investments to modernize operations and increase the viability of the

company as well as effective leadership training of specialized manpower and a more flexible

organizational structure to allow for the much-needed cultural change The liquidity of the

company did not allow for these investments and called for borrowed capital investment

financing The operating results for CKC BEM from 1998 to 2001 are shown in table 1

Table 1 Operating results CKC - BEM 1998 - 2001

(x1000 SRG) Turnover Gross Profit Total Expenses Net Profit before Tax

2001 211098300 101255800 149760200 (48504400)

2000 200587500 122478700 136615800 (14137100)

1999 169809500 71897500 99582700 (27685200)

1998 113576600 48411900 46451300 1960600

Source Ernstamp Young Audit Reports 1998-2001 8 CKC BEM was incorporated in September 1954


241 Current Organization

When decisions are made to change an organizational structure it is important to proceed in a

logical manner First the vision and goals need to be established and then the needed changes

must be identified after which the structural changes must be put in place An important aspect in

this endeavor is communication which should be cross-company to achieve transparency and get

everyone involved and committed The next aspect to consider is the incentive plan and

employee training and development to reduce the knowledge gap and enhance the understanding

of individual and company needs

In mid-2001 the CKC Kersten Holding appointed a new Chief Executive Officer (CEO)

under the condition that no immediate investments could be expected within the first three years

The CEO would first have to prove the viability of the enterprise Every effort had to be made to

cut costs and reduce spending There was no emphasis on the future of the company except to

maximize efficiency in order to minimize cost The company vision was non-existent and its

mission was not articulated and as a consequence its future was unclear

As a starting point of the transformation process the new leadership of CKC BEM needed

to examine its organizational vision its structure its overall communication plan and its

incentive plan An employee training program would have to be set up in order to achieve and

support its efforts in the organizational formation

2411 Organization Vision

Between 1998 and 2000 there were many changes in CKC BEM leadership none with the

desired result After dismissal of the last CEO the strategic management team left leaving the

company in total disarray To recover part of the excruciating loss the Holding company

demanded the dismissal of 35 of the employees and a substantial asset sale to recover part of

the losses Moreover production had to concentrate on a limited number of items Following his

appointment in 2001 the new CEO committed to and communicated the vision that the

organization would improve its operation and aim to reach zero losses within three years making

optimal employment of the human resources available At that point knowingly or unknowingly


he was indicating one aspect of Transformational Leadership To completely utilize the full

potential of our workforce we need to empower our human resources by providing better

education and training and above all better leadership and a dynamic organizational structure

With the new management in place people learnt to discuss long-term vision and short-term

goals Departments contributed in creating mission statements The CEO established trust by

concerning himself with the employeesrsquo personal needs basing this on his belief that cooperation

and commitment are the bases of corporate strategies A quick scan (CKC BEM Quick Scan

July 2001) of the organization revealed that there was a substantial market for their products In

fact the demand was so large and the supply so short that a large number of small producers

benefited from the opportunity by setting up small operations Internally the situation was one of

complete de-motivation

Contrary to the demands and instructions of the Holding company and the Board and

armed with the results of the Quick Scan the CEO decided not to limit the product assortment

but to increase production and expand the sales margin In the human resources sphere the

decision was to motivate the workforce in order to at least double the production A good

communication structure was needed and good behavior and performance had to be rewarded

To recover from the resulting knowledge and skills gap all eligible supervisory level managers

underwent leadership and management training and were upgraded through a lengthy process of

coaching and guidance In 2002 the company ndash the first and only of eleven CKC companies -

applied for an ISO-9001-2000 certification and was successfully awarded in 2003

2412 Infrastructure

The management team of CKC BEM consists of the Chief Executive Officer a Human

Resources Manager Production Manager Quality Control Manager Technical Manager

Financial Manager and a Sales and Marketing Manager The management team is supported by a

Secretarial Department (See Appendix B)

The organizational structure under the management team consists of seven first line

supervisors in various production and technical areas with the support of three group leaders

overseeing the daily operations In 2004 the organization employed 60 general staff and 7 upper


management team members as illustrated in Figure 2 a 50 person reduction from 1998

Presently the number has been reduced to 51 general staff

Figure 2 Staff composition CKC BEM 1998 - 2004

0

20

40

60

80

100

120

Total Number of Staff 1998 - 2004

Staff 10 12 8 8 9 7 7CAO 107 97 91 81 77 66 60

1998 1999 2000 2001 2002 2003 2004

Source Annual Reports CKC BEM 1998 - 2004

Table 3 shows that employee sick leave decreased considerably initially but increased in 2002

most likely because symptoms of set-in fatigue

Figure 3 Sick leave progress 1999 - 2004

Sick leave 1999 - 2004

199916

200021

20019

200219

200320

200415

199920002001200220032004

Sick Leave 1999 2000 2001 2002 2003 2004

days 1160 1491 614 1372 1451 1060Source Annual Reports CKC BEM 1999-2004


The organizational structure is the typical pyramid structure and is more vertically organized

than would be expected The Supervisory Board sets the path and approves the proposals of the

CEO Major decisions are made by the management team and communicated by the managers to

their respective teams by means of meetings memos and occasionally e-mails Supervisors hold

meetings with their group leaders and general staff for the dissemination of information or for

the implementation of upper-management decisions Special customer orders complaints or

demands are channeled upward from supervisors to managers and then discussed at

management meetings for decisions or resolutions which are then conveyed back down the

hierarchical ladder This structure creates long lines of communication and narrow spans of

control moreover it reduces speed of responsiveness to market demand CKC BEM is not as

effective as it could be if levels of hierarchy were less pyramidal CKC BEM is functionally

oriented Separating work by function and task creates communication barriers across functional

lines limiting timely information flow and preventing employees from understanding the overall

mission of the company Moreover the production lay-out is outdated and inefficient In addition

to the above-mentioned factors production equipment is outdated and as a consequence of the

enduring financial problems there is insufficient working capital As a result it is difficult for

CKC BEM to be efficient in its daily operation to respond swiftly to market demands to

consistently offer excellent customer service and most importantly to remain competitive or

gain market share

2413 Management Philosophy Since mid-2001 the management philosophy has been shifting from a purely transactional to a

more participative and transformational leadership (Bass B and Avolio B Improving

Organizational Effectiveness through Transformational Leadership Thousand Oaks Sage

Publications 1994) Former CEOs were authoritative and believed in centralized decision

making Consequently staff morale was low and the organization was ineffective in servicing

customers Upon his ingression in 2001 the CEO of CKC BEM introduced a changed

management philosophy The overall responsibilities are presently shared by the entire


management team The management style is evolving to a more transformational one Although

not as yet completely in place several issues were revitalized such as safety procedures

personnel policies customer service procedures production procedures and quality control

procedures The trade union was involved at an early stage not only to be informed of new

policies but also to listen to the desires of the union members As a result of the involvement

employees became more motivated involved and committed Without being able to improve on

other factors of production and with a decreased workforce9 but confident that conditions would

change for the better under the new leadership they increased output significantly (See figures 4

and 5) Personnel policies were changed to satisfy employee expectations and to introduce

fairness in the execution of policies However the overall operations are still lagging behind

significantly as a result of a lack of working capital and funds to reinvest in equipment and

machines

Despite important adaptations mainly in the human resources policies the overall

effectiveness is still not entirely developed Management understands the changing and

competitive business environment and is continuously exploring ways - albeit ad hoc - to

improve operational effectiveness and to face its challenges

Figure 4 Concrete Tube Production 1998 - 2004

1998

1999

2000

2001

2002

2003

2004

-200000400000600000800000

1000000120000014000001600000

Tube Production

tubes 343700 192400 247200 677700 1104100 1458000 873813

1998 1999 2000 2001 2002 2003 2004

Source Annual Reports CKC BEM 1999-2004

9 The workforce decreased from 91 in 2001 to 61 in 2004 production increased inversely


Figure 5 Concrete Stones Production 1998 - 200410

1998

1999

2000

2001

2002

2003

2004

0

500000

1000000

1500000

2000000

Stones Production

Stones 1315037 1253702 1010861 11112900 15372800 19407600 12224490

1998 1999 2000 2001 2002 2003 2004


2414 Communication Flow

As acknowledged in the infrastructure section the communication flow at CKC BEM is

awkward and sometimes thwarted Inherent in the vertical pyramid structure is a communication

breakdown caused by interrupted linkages from one level to the next and unclear information (as

a result of long lines of communication) These break downs may cause considerable problems

for the company for instance human errors may result or valuable time loss may occur all

resulting in higher operation cost In the end a severely crippled communication system may

eventually cause loss of customers and revenue and may result in decrease of employee morale

An optimal communication system will encourage quick response to customer needs and swift

resolution of customer problems moreover employee morale will most likely further improve

Such a communication plan is imperative to enhance CKC BEMrsquos communication mechanism

and improve its ability to be successful in the future

10 In 2003 several hurricanes destroyed large parts of the Caribbean and the United States As a result almost all cement production was dedicated to rebuilding these areas during the first half of 2004 Consequently imports into Suriname were just a fraction of the normal quantities and resulted in lower levels of concrete stones production


2415 Incentive Program

CKC BEMrsquos compensation policy is based on yearly negotiations with the labor union The

secondary benefits constitute a substantial part of the compensation something the CKC

companies are noted for Following the hyperinflation of the 1990s the otherwise excellent

remuneration of BEM personnel eroded Whereas most other companies have renegotiated the

compensation structure with the labor unions the CKC companies did not adjust the secondary

benefits causing a disparity between the level of secondary benefits and net income leaving

CKC BEM with high overall labor costs and workers dissatisfied with their net incomes

Given the delicate financial position the CEO consulted with the labor union and reached

a mutual agreement comprising of the following

bull No increases would be awarded until the profit and loss account reached break even

bull Incentives would only be awarded based on increased responsibility

bull Exceptional incentives would be awarded solely based on extraordinary performance

bull Only those employees who against all fairness had been deprived from increases would

be awarded a correction

bull New personnel would be employed against higher compensation but with adapted

secondary benefits

During 2002 no salary increases were awarded In 2003 an increase of 20 was awarded based

on the average percentage production increase Over 2004 no salary negotiations took place

2416 Opportunities and Threats

The business environment in which CKC BEM operates poses both threats and opportunities In

order to decide on the right strategies CKC BEM must be fully responsive to neutralize the

threats and turn them into opportunities and to take full advantage of existing opportunities

Table 2 on page 19 depicts some of the threats and opportunities


Table 2 Threats and Opportunities

Threats Opportunities

1 Deficient Support from Holding Company Explosive increase in demand for concrete construction

materials (building sector)

2 Recent Expansion of Large Local Competitor Marketing based on ISO certification11

Expanded ( CARICOM) Market

Increased Infra-structural activities (projects)

New varied customer taste

25 Summary

This chapter has introduced the country background from the perspective of CKC BEM and the

sector in which the organization operates The dire financial position was discussed as a result of

years of lack of investments In this respect the position of the Holding Company towards the

operating company CKC BEM was considered Changes occurring within the organization and

the evolution of the leadership style of the newly appointed CEO were studied The

organizational structure staff composition level of production philosophy and incentive

programs and sick leave progress was discussed Finally threats and opportunities facing the

organizational context were exemplified

11 CKC BEM is the only ISO 9001-2000 certified local concrete construction company and also the only one of the eleven CKC Kersten companies that is ISO certified


CHAPTER 3

3 LITERATURE REVIEW

31 Introduction

Leadership is as old as mankind The need for great leadership nowadays is greater than ever

before Given the changing environment the pressures of globalization changing workforces

and rapid technological development amongst others people have to be better equipped to be

able to steer their organizations to sustained success The examples of failing enterprises are

numerous companies fail mostly because their leadership fails Effective leadership is an all-

encompassing factor of successful companies For companies to remain competitive their

leadership must have integrity and vision must be able to motivate employees to perform even

beyond their own expectation and to their fullest potential and must be able to quickly adapt to

changes For developing countries this is even more true

Upon his inception at CKC BEM in 2001 the CEO after having assessed the situation

decided to implement a type of leadership so far unknown in the organization His approach was

to orientate the organization to a more intrinsically motivated workforce through the style of

leadership which was exercised

Transformational leadership (TL) ndash for the purpose of this thesis ndash is a construct that

cannot and should not be studied in isolation The complexity of leadership demands solid

comprehension of the historical development of and approaches to leadership

This review of literature firstly examines leadership theories commonly referred to in

organizational contexts for a better general understanding of the development and dimensions of

the complex construct of leadership This study will be summarized in table 1 Then focus is

placed on the studies of transformational leadership its characteristics and fundamental qualities

and the relationship of the construct on trust and employee satisfaction The chapter ends with a

summary The review begins with the description of main concepts used during the study


32 Definition of Main Concepts Used

321 The concept of Leadership

It is believed that leadership has it roots in conflict and has evolved through centuries The

attributes that conceptualize leadership vary in the literature depending on the perspective of the

researcher Some writers have identified leadership as a position others as a person some as a

behavior some as a relationship others a process The handbook definition of Bass amp Stogdillrsquos

Handbook of Leadership (3rd edition p19) provides the definition ldquoLeadership is an interaction

between two or more members of a group that often involves a structuring or restructuring of the

situation and the perceptions and expectations of the membersrdquo Northouse in Leadership

theory and practice (2004 3rd edition p 3) defines it as ldquoLeadership is a process whereby an

individual influences a group of individuals to achieve a common goalrdquo James MacGregor

Burns in Leadership (1979 p 18) mentions that ldquoLeadership over human beings is exercised

when persons with certain motives and purposes mobilize in competition or conflict with others

institutional political psychological and other resources so as to arouse engage and satisfy the

motives of followersrdquo Yukl (2001 p7) ldquoLeadership is the process of influencing others to

understand and agree about what needs to be done and how it can be done effectively and the

process of facilitating individual and collective efforts to accomplish the shared objectivesrdquo

Hellriegel and Slocum in Organizational Behavior (10th ed p 250) define leadership as rdquo The

process of developing ideas and a vision living by values that support those ideas and that

vision influencing others to embrace them in their own behavior and making hard decisions

about human and other resourcesrdquo

From these and other definitions we may conclude that leadership is about relationships

with other actors about influencing these actors and about performing

322 The concept of Transformational Leadership

James MacGregor Burns in Leadership (1978 p 4) conceptualized transforming leadership as

follows ldquothe transforming leader recognizes and exploits an existing need or demand of a


potential follower But beyond that the transforming leader looks for potential motives in

followers seeks to satisfy higher needs and engages the full person of the followerrdquo

When addressing transformational leadership Bernie Bass is the foremost author on the

subject For the purpose of this study we will adopt the Transformational Leadership approach as

put into operation by Bass ldquoTransformational leaders motivate others to do more than they

originally intended and often even more than they thought possible They set more challenging

expectations and typically achieve higher performancesrdquo ldquoTransformational leaders do more

with colleagues and followers than set up simple exchanges or agreements They behave in ways

to achieve superior results by employing one or more of the four components of transformational

leadership Idealized Influence Inspirational Motivation Intellectual Stimulation and

Individualized Considerationrdquo (Bass 1994)

323 The concept of Trust

Trust is an interpersonal relationship that plays a vital role in leadership Organizational

researchers have defined trust from different dimensions For the purpose of this study we will

approach trust as a combined dimension of cognitive and affective forms (Dirks K amp Donald

Ferrin Trust in Leadership META ANALYSIS Journal of Applied Psychology 2002 87 611-

628 p 15) and adopt the definition of Rousseau et al (1998) as mentioned by Dirks and Ferrin

p5 ldquoa psychological state comprising the intention to accept vulnerability based upon positive

expectations of the intentions or behavior of anotherrdquo

324 The concept of Job Satisfaction

Job satisfaction answers the question ldquoDo people really like their jobsrdquo It also relates to

feelings which are reflected in attitudes towards their jobs (Hellriegel amp Slocum Organizational

Behavior 10th ed p51) The construct is important since it is directly related to job performance


33 Approaches to Leadership

The meaning of construct leadership depends on the context in which leadership takes place In

leadership literature different classification systems have been developed over time In some

classification systems leadership is viewed in terms of power relationships with the followers in

other systems leadership is viewed from a personality perspective a behavioral perspective or as

a process (Northouse 2004 p 2) Given that leadership is an interaction between leader and

follower the effectiveness of the leadership style exhibited in organizations is a critical

determinant of organizational success In table 3 below the researcher will place ldquooldrdquo leadership

theories within the context of their evolution

Table 3 Summary of Leadership Approaches

Leadership Approaches Summary of Theory

Trait Leadership Early part of 20th Century

Leader as Great Man Devoted to leader inborn characteristics leaders lead the way Criticism no specific set of traits for all leaders does not take the situation into account Strength Is intuitively appealing and holds some truth is widely researched

Behavioral Leadership Late 1940s

Explains what leaders do and how they act especially towards followers As such distinguishes between task behavior to realize goals and objectives and relationship behavior to help followers feel comfortable in a given situation Ohio state- and University of Michigan state studies well known Ohio State University developed the initiating structure the extent of the leader initiating activity and consideration the degree of showing concern for the followers Michigan University distinguishes between leaders with an employee orientation (concern for the follower) and production orientation emphasizing the goals to be realized Criticism Research has not proven how styles are associated with performance No universal style emerged for every situation Strength Makes the leadership process comprehensible sufficient empirical support worthwhile in understanding complexities of leadership

Situational Leadership Late 1960s

Focus is on leadership in situations Directive and supportive dimension dependent on followersrsquo readiness and level of development Criticism Little research done theoretical basis questioned Strength well-known used for training to become effective leaders Practical in use Tells what to do in which situations Is flexible in nature Emphasizes individuality of followers

Contingent Leadership Mid to late 1960s

Leader effectiveness depends on fit of style and situation Characteristic of situation Leader-member relations are task or relationship motivated Criticism Fails to explain effectiveness of one style over the other Strength Supported by empirical evidence provides data on leadership styles that can be used in developing leadership profiles

Path-Goal Leadership Early 1970s

Focused on reaching the goal Leader chooses the path that best fits the needs of followers Directive style when followers are dogmatic Supportive style when followers need affiliation Participative when followers are autonomous Criticism complex to implement Only partial support from empirical research Strength Good theoretical framework integrates the motivational principles of expectancy into leadership theory A Practical model

Source Author


34 New Leadership Theories

Since James MacGregor Burns introduced the concept of ldquotransforming leadershiprdquo in his classic

study ldquoLeadershiprdquo (1978) many scholars have built on this new notion The foremost author on

examining transforming leadership is Bernard M Bass Bass (1985) developed the Full-range

leadership theory which includes former approaches to leadership and also builds on factors of

emotion and inspiration of leaders on followers As an integrative approach to the theory was

adopted this new leadership paradigm has resulted in broad recognition in management and

leadership literature Moreover contrary to some other leadership studies the Full-range

leadership theory is supported by extensive empirical substantiation The Multifactor Leadership

Questionnaire serves as the instrument to measure Full-range leadership In the following

sections relevant literature concerning new leadership approaches will be presented

341 The Full-Range Leadership Theory

The integrative character of the Full-range leadership theory is vested in its all-inclusive

character of traditional charismatic leadership approaches (Avolio Yammarino 2002) of Weber

(1968) Downton (1973) Zaleznik (19771992) and Burns (1978) The essence of the theories of

these scholars was based on ldquomorals and ethics vision ideals values risk and changerdquo or

ldquocharismatic-transforming-leadershiprdquo ldquoversus the bureaucratic-transactional-management

approachrdquo with the focus on ldquocontrol contracts norms conservatism and stabilityrdquo (Avolio

Yammarino 2002 p 7)

Contrary to Burnsrsquos (1978) conception of transforming and transactional leadership at the

extreme ends of a continuum of leadership behavior Bass states that ldquotransformational

leadership builds upon the exchange nature of transactional leadershiprdquo (Bass 1985) According

to Bass the leaderrsquos mind-set is vital to his charisma If leaders are concerned about their

followers they will adapt to their needs in order to intrinsically motivate them These leaders are

transforming leaders On the other hand are the leaders who motivate through rewards and

sanctions the transactional leader ( Avolio Yammarino 2002 p7) The essence of the Full-

range leadership theory is the ability of every leader to display each style to a certain extent


The Full-range leadership theory comprises five factors belonging to transformational

and three factors belonging to transactional leadership (TXL) as well as the ldquolaissez-fairerdquo

leadership behavior with zero factors and which constitutes an ineffective style of leadership

The Full-range leadership is universal in nature and can materialize in a directive or participative

way depending on the leaderrsquos behavior and the local cultural dimensions (Hofstede 1991) of

power distance uncertainty avoidance and individualism vs collectivism ( Avolio Yammarino

2002 p16) Each of these styles is assumed to have a direct effect on individual and

organizational result Bass argues that while we call some leaders transformational and others

transactional most have a profile of the full range of leadership

However those whom we label transformational demonstrate more transformational

leadership behavior while the transactional leaders have behavior more consistent with

transactional leadership (Bass Steidlmeier) The Full-range of leadership processes takes place

at all levels of organizations The optimal and sub-optimal models are illustrated in figure 6 The

depth in each model indicates the regularity with which a particular style occurs the horizontal

active dimension is based on the theory and clarifies the style while vertical effectiveness is

based on empirical findings (Bass amp Avolio 1994) of the impact of the style on performance

Figure 6 Optimal and Sub-optimal model of Range of Leadership model

Source adapted from Bass amp Avolio Improving Organizational Effectiveness through Transformational Leadership Legend LF Laissez-Faire

or Non-leadership Management by Exception Passive(MBE-P) and Management by Exception Active (MBE-A) and Contingent Reward (CR)

Irsquos

Irsquos

CR

MBE-A

MBE-P

LF

CR

MBE-A

MBE-P

LF


are components of Transactional Leadership Idealized Influence Inspirational Motivation Intellectual Stimulation and Individualized

Consideration (four ldquoIrdquos) are the components of Transformational Leadership

342 Transformational Leadership

A variety of authors have conceptualized transformational leadership in a number of ways The

extensive interest in the construct is the result of rapid changes in the business climate after the

1970s The business world became more competitive and less stable Moreover the ldquooldrdquo

leadership theories vested in personal traits or behavior or situations which did not consider the

continuum of characteristics needed in the changing environment

In 1973 Downton conducted a sociological study ldquoRebel Leadership Commitment and

Charisma in the revolutionary processrdquo and mentioned transformational leadership as an idea

(Bass 1985) James Mc Gregor Burns (1978) was the first to propose the notion of transcendence

of self interest by leaders and followers According to Burns (1978) transforming leaders have

the ability to make sure that followers are consciously aware of the importance of goal and value

sharing Burns (1978) further suggests that these leaders guarantee that followers know how to

achieve these goals He further indicates that ldquotransforming leaders motivate their followers to

go beyond their own self interest and give effort on behalf of the organization by appealing to the

higher order needsrdquo Warren Bennis (1989) visualized the transformational leader as one with the

capacity to reach the souls of his followers Yukl (1989) defined transformational leadership as

the process of influencing major changes in attitudes and assumptions or organizational members

and building commitment for the organizationrsquos mission and objectives

At the heart of true transformational leadership is ldquothe ideals of leaders which is that which

ignites charismardquo (Avolio Yammarino 2002 p8) Bass (1985) the foremost writer on

transformational leadership expanded on Burnsrsquos theory and developed a model of

transformational leadership He identified the five key components of transformational

leadership as follows

bull Charisma or Idealized influence (attributes) (IA)

bull Idealized influence ( behavior) (IB)

bull Inspirational motivation (IM)

bull Intellectual stimulation and (IS)


bull Individualized consideration(IC)

When transformational leaders are perceived by their followers as having an attainable vision

and mission they trust and identify with these leaders This refers to the first component

Idealized Influence (attributes) (IA) According to some authors IA relates to charismatic

leadership however in reality it is referring to behavior that intends to move the organization in

a more effective and innovative direction

Idealized Influence behavior (IB) implies behavior that results in followers identifying

with leaders and wanting to imitate them

Transformational leaders have clear ways of communicating to motivate and inspire

followers with the intention of engaging them more closely in the work-process (IM) The

components IA IB and IM are closely related

Transformational leaders are also change-oriented and have the ability to create

something new from something old they encourage their followers to be innovative and creative

by approaching old situations in new ways they are Intellectually Stimulating (IS)

Their relationship style is often informal they relate to followers on a one-on-one basis

and they always seek to develop individuals and respond to their needs and interests They show

what is identified as Individualized Consideration(IC)

Transformational leadership defines the leader in terms of values motivation wants

needs aspirations and expectations There is a similarity with Path-Goal approach in the idea of

goal realization while the difference is in the relationship with the follower The

transformational leader focuses on vision sharing values purpose and followersrsquo possibilities

contrary to the Path-Goal leader who stretches the path to follow in order to achieve the goals

Transformational leaders are people with an entrepreneurial spirit and do not shy away

from taking risks Moreover they are likely to have effective ways to communicate important

issues they are leaders with a number of managerial qualities and skills such as creativity

commitment they demonstrate positive attitude they are respectful of others and they have


coaching skills they exert responsibility they are cognitive team players and most important of

all they instill trust in the followers

A research looking at ethics character and authentic transformational leadership made by

Bass and Steidlmeier (1999) supports the principle that authentic transformational leadership

must be ldquogrounded in moral foundationsrdquo (p1) as conceived by Burns (1978) Pseudo-

transformational leadership behavior contrasts itself by values and traits that are self-oriented

(Bass 1997) Critics of ethics of transformational leadership in fact address pseudo-

transformational leadership behavior since true transformational leaders increase awareness of

followers on good and right and ldquoelevate followersrsquo needs for achievement and self actualization

and move followers to go beyond their selfndashinterest for the benefit of their group or

organizationrdquo (Bass 1997)

Other categories of critics of transformational leadership have argued that the ldquoconcept

lacks clarity and that the parameters overlap with other similar conceptualization of leadershiprdquo

(Yukl 2002 Northouse 2004) Moreover a critique is that some typical factors overlap with

other leadership models A big disparagement is that leadership is treated as a trait more so than

as a behavior Some authors consider it ldquoantidemocraticrdquo and ldquoelitistrdquo and argue that it is based

primarily on qualitative data and that it has the ldquopotential to be abusedrdquo (Northouse 2004)

However these arguments have been refuted based on empirical evidence gathered from all

continents (Bass 1997) Firstly the universality of the theory emanates from globalizing trends

and the role of the internet and secondly the inter-correlated components of transformational

leadership have universal applicability and thirdly transformational leadership has proven to be

more highly correlated with effectiveness than other leadership theories (Bass 1997)

The strengths of the approach can be summarized as follows (Northouse Leadership

theory and practice 3rd Ed)

bull The theory is widely researched and transcends geographical borders

bull People are intuitively attracted to it because it feels natural

bull Transformational leadership has a broad approach that augments other leadership models

bull The approach emphasizes the follower his needs values and morals are accentuated


bull Transformational leadership has empirically proven to be an effective form of leadership

bull Transformational leadership can be taught to people at all levels of the organization

Transformational leadership is assumed best for organizations in times of change given that

this style instills pride in the followers who under this leadership do not hesitate to offer ideas

and become part of the decision-making process According to Bass (1990) this happens as a

result of heightened level of awareness of the objectives of the organization and how these can

be realized Transformational leadership is considered as an addition to the effectiveness of

transactional leadership

343 Transactional Leadership

Transactional leadership stems from a traditional view of the leader having and using power and

authority over the followers to achieve goals and objectives thus focusing on the exchanges that

occur between leaders and their followers As such this leadership style involves ldquocontingent

reinforcementrdquo (Bass Steidlmeier 1998) and is based on social interaction between the person of

the leader and the follower Leaders and followers ldquotransactrdquo on what is to be done for what

reward and punishment for disapproved actions Another characteristic of the transactional

leadership is ldquoactive and passive management-by-exceptionrdquo The active mode involves

monitoring of followersrsquo performance and correction of their mistakes whilst the passive mode

entails that leaders act with corrective action only when followersrsquo mistakes are reported

It can be concluded that transactional leaders get things done because they recognize

followers who perform well by giving incentives or for instance salary increases thus appealing

to the self-interest of the followers Therefore it is argued that providing contingent rewards

leads to contingent degrees of involvement loyalty and performance from followers Figure 7

on page 30 illustrates the leadership factors in the augmentation model of Transactional and

Transformational leadership


Figure 7 Leadership factors in the augmentation model of Transactional and Transformational Leadership

Transformational

Source Multifactor Leadership Questionnaire 3rd edition 2004

344 Laissez-Faire Leadership

Laissez-faire leadership involves a hands-off let-things-ride approach It is the non-leadership

factor and therefore referred to as absence of leadership and concerns leaders who renounce

responsibility procrastinate abstain from giving feedback and do little to help followers satisfy

their needs or to influence them otherwise

The conclusion to be drawn from this is that laissez-faire leaders are not adequately

motivated or skilled to be effective leaders

35 Trust in Organizations

Trust is an important and powerful factor in human relations and has to be created intentionally

and structurally within organizations to develop the desired organizational culture If lack of trust

exists within an organization it will negatively affect productivity of the followers the leaders

and ultimately the organization The continuity of an organization is dependent on both leaders

and followers working harmoniously together As long as followers have trust in their leaders

Idealized Influence Inspirational Intellectual Individualized + +Attributed Behavioral Motivation Stimulation Consideration F

Transactional Leadership Management ndash by ndash Exception Expected Heightened Motivation

Effort to (A) amp (P) Designated Outcomes

+ Expected Performance Performance Contingent Reward

Beyond Expectations


they maintain respect Effective leadership is vital to an organization but without motivated

followers who trust their leader no organization will succeed beyond expectation As Warren

Bennis stated in the publication Leadership and Management in the Information Age of the

Emirate Center for Strategic Studies and Research ldquoA Farewell to the Old Leadershiprdquo (p30)

ldquotrust becomes the emotional glue that can bond people to an organizationrdquo In an environment

of trust positive attitudes prevail which result in higher levels of performance In order to study

the links with organizational performance an understanding of dimensions of trust within

organizations is important First the dimensions of trust within organizations will be reviewed

and then the bases of trust will be addressed after which the relationship between leadership

style and trust will be studied

351 Dimensions of Trust in Organizations

In literature the diversity on the focus of the construct trust in relationship with other constructs

has increased As the literature indicates a relationship exists between the definition used and the

focus of the construct therefore the definition applied for the purpose of this study is ldquoa

psychological state comprising of the intention to accept vulnerability based upon positive

expectations of the intentions or behavior of anotherrdquo (Dirks and Ferrin 2002) The use of the

construct will relate to trust in general in the way things are communicated and dealt with in the

organization and the way and commitment is perceived by employees

Researchers distinguish between a cognitive and behavioral dimension of trust The

cognitive dimension relates to confidence in the trustworthiness or integrity of the partner as a

result of his drive and knowledge On the other hand the behavioral dimension relates to putting

faith in another person making the trusting individual vulnerable and uncertain Some of the

factors that are considered to make a partner trustworthy are ability integrity and benevolence

Ability as assumed in this context is the competence of the trusted to deliver what the trusting

expects Integrity is assumed if the trusted individual behaves according to vested guiding

principles and benevolence is considered the trusted personrsquos willingness to consider the needs

of the trusting individual In both dimensions trust is a ldquoproperty of the follower and not of the


relationship or the leader per serdquo (Dirk Ferrin 2002) These considerations assume a certain

aspect of risk as well as a social orientation within relationships and within organizations

Within organizations employees judge whether or not they can place trust in

management If the system conveys trust employees will reciprocate these relations If trust is

not communicated distrust will prevail According to the relationship-based perspective

employees will put effort in reciprocating benefits received Mention should be made that trust in

the immediate supervisor and trust in the organization are separate but related constructs Where

trust in the supervisor relates to factors as integrity ability and benevolence trust in the

organization as such is correlated with the message of sentiments of justice and support

Researchers found that trust in direct leadership is positively related to increased job

performance or ownership behavior Scholars emphasize the importance that given the present

lateral relationships in organizations sufficient attention should be given to trust in colleagues as

this may have work-related benefits such as exchange of information and helping team members

when needed

Dirks and Ferrin (2002) found that scholars have a firm belief that trust has a significant

impact on numerous outcomes relevant to organizations however their opinions vary and it was

not possible to draw conclusive findings for behavioral and performance variable

352 Bases of Trust in Organizations

When people feel appreciated when they are treated fairly when policies and procedures are

communicated effectively when they know what to expect and know what is expected of them

they feel safe and comfortable In those conditions it is more likely that people trust their direct

superiors and the organization as a whole If human resource practices are fair and the policies

well communicated and if leadership is inspiring and concerned with the well-being and growth

and development of the followers and if they participate in the decision making process and in

short if the organizational surrounding is supportive the organization is considered trustworthy

and followers will be willing to employ trustworthy behavior


353 Leadership Style and Trust

Trust is a key concept in leadership theories and has been typically noted in literature on

transformational leadership When followers can identify with the leader and are involved in

decision making when they share the same values and vision and have a common goal to

pursue trust will ensue The components of transformational leadership are follower-needs

oriented and will positively influence the development of trust especially so given the social

exchange relationship Bass (1998) argues that trust in leadership is required for the followers to

identify with the organization and its values Jung and Avolio (2001) argue that transformational

leaders build trust by demonstrating individualized concern and respect for followers Empirical

studies have also shown that trust highly correlates with transformational leadership (Dirks amp

Ferrin 2002) Transactional leadership on the other hand with its contingent reward approach

elicits trust of a conditional nature

36 Leadership Behavior and Employee Trust

Scholars have described trust as a variable with direct influence on work performance (Dirks and

Ferrin (2002) This implies that when trust is high the organization will have higher levels of

performance In Leadership literature transformational leadership is usually associated with

willingness of followers to put in extra effort (Bass 1985 Yammarino amp Bass 1990) which will

ultimately lead to high organizational performance Contingent reward behaviors typical for

transactional leadership have been found to be also positively associated with performance of

followers ldquoalthough not as much as the four Is in motivating others to achieve higher levels of

development and performancerdquo (Bass Avolio 1994 4) In their groundbreaking book Built on

Trust Ciancutti and Steding (2001) argue that organizational leaders should intentionally and

methodically create trust to develop the desired organizational culture They further argue that

such a ldquoleadership organizationrdquo is a guarantee for organizational success and will generate

satisfied people which will result in improved performance Organizations become leadership

organizations by implementing lsquoTrust Modelrsquo principles based on a universal set of guidelines If

the leadership has the vision to adapt these guidelines for the organization all followers will be


involved to put-in and buy-in since everyone is involved in the process of developing the model

The basic principles of the model are

bull Closure ( be specific and clear when communicating ask for timeframes)

bull Commitment ( have every intention of fulfilling the commitment)

bull Communication (communicate directly and openly no backstabbing or gossiping)

bull Speedy Resolution (resolve critical issues quickly and completely to gain closure and

commitment)

bull Respect ( treat everyone as you want to be treated with dignity and respect )

bull Responsibility (be responsible for your own problems ask for help if needed)

As empirical evidence has shown the four Is of transformational leadership allow for leaders to

build their organization intentionally and systematically on trust and will therefore positively

influence organizational performance Followers thus motivated and committed become key to

the organizational performance and are considered an organizational asset difficult to duplicate

and according to Pfeffer (1998) capable of continuous improvement Pfeffer (1998) identified

seven factors of high performance leadership practices consisting of

1 Employment security

2 Selective hiring of new personnel

3 Self-managed teams and decentralized decision-making as the basic principles of

organizational design

4 Comparatively high compensation contingent on organizational performance

5 Extensive training

6 Reduced status distinction including dress language office arrangements and

wage differences across levels

7 Extensive sharing of financial and performance information throughout the

organization

As a result of these practices people become more involved and committed and work harder

They also work more intelligently because they develop skills and competence and because they

are recognized they put extra effort into enhancing organizational performance Additionally

these practices move away from a control and command culture to placing responsibility and


accountability further down the organizational structure Empirical research in a broad range of

organizations has shown that transformational leadership correlates positively with performance

outcome measures (Dumdum Lowe Avolio a Meta Analysis of Transformational and

Transactional Leadership Correlates of Effectiveness and Satisfaction An update and extension)

37 Leadership style and Employee Satisfaction

Leadership is about motivating people Experts believe that good leadership entails the

competency to motivate followers with the intention to satisfy their needs and to retain them The

foundation for job satisfaction and job motivation theory was introduced by Maslow with the

motivational theory with a five-stage hierarchy Maslow argues that people are motivated if their

five basic needs are satisfied in a consecutive manner (Hellriegel and Slocum 10th ed p119)See

figure 8 Maslowrsquos ldquohierarchy of needsrdquo illustrated in pyramid-type form

Figure 8 Maslows Hierarchy of Needs

Source DrC George Boeree


Transactional leaders understand the strength of the lower needs of their followers and know

how to satisfy these needs whereas transformational leaders will be able to motivate them to

become high performers to realize the success of the organization and satisfy their own higher

order needs as they grow

Another motivational theory is Herzbergrsquos ldquotwo-factor theoryrdquo the ldquomotivator-hygienerdquo

theory (Hellriegel and Slocum 10th ed p 126) Herzberg theorized that jobs have factors which

lead to satisfaction or dissatisfaction These two dimensions are ldquohygienerdquo and ldquomotivationrdquo

The factors include achievement recognition the work itself responsibilities and advancement

The satisfaction factors allow employees to reach their potential and are usually associated with

the work itself (motivators) The dissatisfaction factors are usually associated with the work

environment and include pay working conditions supervision company policy and

interpersonal relationships (hygiene factors) These factors Herzberg concluded ldquoare essentially

independent of each other and affect behavior in different waysrdquo ( Hersey BlanchardJohnson 8th

ed p 67) Dissatisfaction factors should be pursued to prevent job dissatisfaction or discomfort

Literature is abundant in showing linkages between satisfaction and performance but

empirical evidence to support the theory is not plentifully available However justification for

the need to investigate job satisfaction is exemplified in the relationship between the levels of job

dissatisfaction and turnover absenteeism and tardiness as these factors place negative conditions

upon an organization in terms of amongst others increased cost relating to recruiting and

training new employees negatively affecting the morale of remaining employees and

interrupting daily activities

Given the existing conditions in the company under study it is assumed that the level of

motivation will not be surprising in light of the dissatisfaction with factors associated with their

work

38 Summary

The literature review looked at Transformational Leadership within a wider range of leadership

theories and defined its specific characteristics and effects In table 2 the researcher has provided

an overview of the relevant approaches to leadership as vital forces to the emergence of


Transformational Leadership The independent variable transformational leadership was

analyzed and the relationship with the associated dependent variables of employee trust and

satisfaction were studied In spite of criticism on the construct from some scholars the literature

review has shown that transformational leadership with its augmenting effect on transactional

leadership is empirically supported to be positively associated with trust and employee

satisfaction Transformational leadership with the components of Individualized Consideration

Intellectual Stimulation Inspirational Motivation and Idealized Influence is widely recognized

and empirically supported as the new style of leadership that is appropriate for organizations in

times of change and that it transcends geographical boundaries The concept can be taught and

learnt Given the present global environment with rapid technological changes as well as the

nature of the workforce leaders should be well aware of the needs of their followers in order to

motivate them to perform beyond expectations to realize the organizational goals and gain the

necessary competitive advantage to be a successful organization


CHAPTER FOUR

4 CONCEPTUAL FRAMEWORK

41 Introduction

A key concept of Bassrsquos model of Transformational Leadership is the ldquoaugmentation

effectrdquo on transactional leadership The transactional process is seen as an essential component

of effective leadership By adopting transformational leadership methods a transactional leader

can enhance the effectiveness of hisher leadership style This constructive addition of

transformational leadership to transactional leadership explains the full range of behaviors and

outcomes which have an impact on various styles of leadership (Bass and Avolio 1999)

Dumdun Avolio and Lowe (2002) explored the ldquotruerdquo association of satisfaction in a meta-

analysis of the correlates of Effectiveness and Satisfaction of Transformational and Transactional

Leadership The results evidenced the highest and positive correlation between Transformational

Leadership and satisfaction a moderate correlation with Transactional Leadership and a strong

negative relationship with the Laissez-Faire leadership The results support earlier findings of

Bass ldquothat there is a hierarchical relationship between transformational transactional non-

transactional and performance effectiveness especially at the individual scale levelrdquo(Bass 1994)

Bass (1994) argued that whether or not transformational or transactional leadership emerges in a

particular situation depends on the external environment the organizational environment and the

personality of the leader Transformational leadership according to Bass is more likely to

emerge in times of growth change and crisis

The Multifactor Leadership Questionnaire is the instrument to measure both transactional

and transformational leadership behavior and to examine the nature of this relationship between

these styles and work unit effectiveness and satisfaction Additionally the MLQ provides three

outcome factors to measure the effectiveness of leadership Extra effort Effectiveness and

Satisfaction

In this study Bass and Avoliorsquos model (1990) on transactional and transformational

leadership will be used to test its relevance in the organization under study To make the model


more specific to the actual situation the constructs trust and job satisfaction will be added to the

model as variables on which Transformational Leadership assumedly exerts positive influence

The resulting conceptual framework is shown in figure 9 below

Figure 9 Conceptional Framework

Transformational Leadership

Source adapted from Multifactor Leadership Questionnaire 3rd edition 2004

42 Hypothesis

Based on the research objectives the literature and the conceptual framework the

researcher assumed a connectedness between transformational leadership as an independent

variable and the dependent variables trust and employee satisfaction which is expressed in the

following hypothesis

+Idealized Influence

Attributed Behavioral Inspirational Motivation

Intellectual Individualized + Stimulation Consideration +

Transactional Leadership

Expected Heightened Motivation

Management ndash by ndash Exception Effort (A) amp (P)

to Designated Outcomes

+ Expected Performance Performance Contingent Reward Beyond Expectations

Job satisfaction +Employee Trust + Satisfaction


Hypothesis Transformational leadership will positively influence employee trust and

satisfaction within CKC BEM

The model will be tested to gain better understanding of the relationships of the variables

in the study by addressing the following central and sub-questions

Research Question 1 What evidence exists that Transformational Leadership influences




described




within CKC BEM

43 Implementation of Conceptual Model

The implementation of the conceptual model requires a flexible organizational structure with less

layers enabling lateral communication A well-formulated plan solid preparation support from

the Supervisory Board and other stakeholders will be required By design the complete staff must

be involved in the process albeit gradually and at the right stage of involvement Based on the

above-mentioned factors the researcher proposes the ldquoStar Modelrdquo by J Galbraith(See figure 15

on page 64) The design will facilitate the deployment of Transformational Leadership through all

layers of the organization

44 Summary

The chapter introduced the Conceptual framework which is adopted from Bass and Avoliorsquos

model on transactional and transformational leadership with the addition of the constructs Trust

and Satisfaction as variables which assumedly are influenced by Transformational Leadership


Based on the assumed relationship the researcher hypothesized a positive influence on the

dependent variables The subsequent research questions served to test the relationships and the

workings of Transformational Leadership in the company under study


CHAPTER FIVE

5 RESEARCH METHODOLOGY

51 Introduction

This chapter addresses the research hypothesis and explains the dependent and independent

variables The chapter will also establishes methods used in the data collection in order to find

answers to the research questions as to fulfill the purpose of the thesis Items that are addressed

include the research design the research strategy the data analysis reliability and validity The

chapter ends with a summary

52 Research Hypothesis

The research will investigate whether the leadership of CKC BEM is practicing Transformational

Leadership and whether the transformational leadership style has increased trust and satisfaction

within the organization A positive influence is assumed between the transformational style of

leadership within CKC BEM and the relations thereof on employee trust and satisfaction leading

the researcher to the following hypothesis Transformational leadership will positively influence

employee trust and satisfaction within CKC BEM

521 Independent Variable

Independent variables are considered variables ldquothat cause influence or affect outcomesrdquo (John

W Creswell Research Design 2003) For the purpose of this study Transformational leadership

is the independent variable that influences directly or indirectly higher as well as general staff

trust and satisfaction which will lead to less sick leave higher morale and better cooperation

resulting in higher production outcomes This independent variable will be operationalized using

the Multifactor Leadership Questionnaire (MLQ) short form 5x from Bass and Avolio

measuring the full range of leadership (Bass and Avolio 2000) The four components of

Transformational Leadership were measured by 20 items as follows (See Appendix C- 3)


bull Idealized Influence is measured by eight items on the MLQ four (rsquos 10 18 21 25)

being Idealized influence (attributed which considers the more indirect behavior of the

leader) and four (rsquos 6 14 23 34) being idealized influence (behavior which regards the

open behavior of the leader)

bull Inspirational Motivation is measured by four items (rsquos 9 13 26 36) on the MLQ

bull Intellectual Stimulation is measured by four items (rsquos 2 8 30 32) on the MLQ and

bull Individualized Consideration also measured by four items (rsquos 15 19 29 31) on the

MLQ

In total nine different leadership styles scales exist in the questionnaire five pertaining to

transformational three to transactional and one to laissez-faire leadership Moreover nine items

representing Extra Effort (3) Effectiveness (4) and Satisfaction (2) were measured

522 Dependent Variables

The researcher identified employee trust and satisfaction as dependent variables which ldquodepend

on the independent variables and are the outcomes or results of the influence of the independent

variablesrdquo (Creswell 2003) Employee trust and satisfaction are the result of the interaction

between the leadership and the followers In order to have a positive relationship with followers

leaders must cultivate trust Trust in leadership has been found to lead to many positive

organizational results such as increased performance and job satisfaction (Dirks 2002) Thus it is

important to find out what factors explain trust in the leader Mayer et al (1995) developed an

integrative model of trust which proposes that peoplersquos predisposition to trust combined with

perceptions of anotherrsquos ability integrity and compassion will determine the level of trust in a

given dyad leading to trust being an intention which results in risk taking Whilst leadership-

specific outcomes were assessed using the outcomes scales of the MLQ organizational outcomes

were assessed using different instruments For the measurement of trust the trust scale instrument

from Ciancutti and Steding was used to assess multiple facets of trust Satisfaction was measured

using the Schriesheim and Tsui Job Satisfaction instrument


523 Influence

The researcher assumed a positive relationship between the independent variable

Transformational Leadership and the dependent variables employee trust and satisfaction

Transformational Leadership is characterized by the four key components often referred to as

the four Is which are conceptually distinct but empirically indistinct (Bass 1997) and which

comprise

bull Idealized Influence (Charisma) which exerts trust values commitment leaders who are

role models and are concerned with ethics

bull Inspirational Motivation where the leaders motivate followersrsquo work by

communicating meaning in such a way that they cultivate enthusiasm and team spirit and

involve followers in envisioning the future of the organization through clear

expectations shared visions and commitment to goals

bull Intellectual Stimulation through innovation and ldquoout of the boxrdquo thinking by

encouraging creativeness from followers in approaching situations in alternative ways

and by not punishing followers for mistakes made

bull Individualized Consideration which strong aspect is the treatment of employees as

individuals with personal needs and abilities where the leader listens to the individuals

where their development is stimulated by training teaching and learning

The assumed relationship is hypothesized in the conceptual framework on page 39 figure 9

53 Research Design

This research aims to establish the degree to which the leadership style is transformational and to

what extent it has influenced employee trust and satisfaction within the organization This is a

single multi-modal case study applying a mixed method to better understand the research

problem by converging both quantitative and qualitative data A detailed literature review as

support for the theoretical background making use of textbooks general literature research

articles and the World Wide Web enabled the generation of a conceptual framework for the


study hypothesizing that transformational leadership is positively linked to variables such as

employee trust and satisfaction Undoubtedly the researcherrsquos experience with the company

under study has contributed to this venture Five unstructured interviews of about one hour each

were held in which the chief executive and managers were queried about their experience with

Transformational Leadership within their organization (See Appendix C-1)

All questionnaires used are paper-pencil questionnaires The scales used in the study are

published scales that have been previously validated The MLQ Form 5x short containing 45

items will be used to examine the degree to which followers feel that their leader exhibits

transformational transactional or laissez-faire leadership Employee trust will be measured using

the Ciancutti and Steding questionnaire to examine the perception of the general concept the

organizational communication the commitment the way problems are resolved the level of

responsibility and closure for Job Satisfaction the Schriesheim and Tsui (1980) six item measure

will be used to assess overall job satisfaction(See Appendixes C-4 and C-5)

54 Data Collection

Data collection comprised of secondary data from company documentation and publications

such as annual and audit reports and reports of the CEO These were studied extensively

Because research into the hypothesized issues demanded consultation with the entire

CKC BEM community since all members are generally and individually affected primary

research comprising unstructured interviews with the executive director and the management

team were carried out

Similarly data collection was carried out among the mid-level managers as well as the

management team and the CEO using the Multifactor Leadership Questionnaire short form 5x

The perception of trust and satisfaction was assessed using the Ciancutti and Steding trust

questionnaire and the Schriesheim and Tsui (1980) six item job satisfaction test Each

questionnaire was accompanied by a covering letter explaining the purpose of the study and the

importance of completion (See Appendix C-2) These questionnaires were handed in person to

the interviewees and a return date was agreed First the MLQ was administered then the trust


questionnaire and then followed by the job satisfaction questionnaire Demographic information

was gathered separately to gather background personal and organizational information

Collection of data for the MLQ short form 5x to determine the perception of the

leadership style as well as the perception of trust and satisfaction from the lower level employees

(40) with little formal schooling happened through supervised completion by researcher Four

group sessions were carried out with lower level production and technical workers grouped in

clusters of ten employees per session Participants were always advised of the confidentiality of

all information given and anonymity of all material All interviewees12 were introduced to the

research objectives and background they were informed of the researcherrsquos institution and the

name of the contact person who arranged for the interviewee to be interviewed or contacted The

response rate was 83 percent

All questionnaires had to be translated from English into Dutch for univocal

understanding The translated questionnaires were pre-tested using a few non- participants from

the company consisting of part-time workers These individuals were not included in the final

study The qualitative comments were mostly regarding wording Wordings were replaced

where necessary to prevent bias apart from this the items were not modified in any way

The full range of participants consisted of 59 full time employees 80 were males and

20 were females (See figure 10 page 47) Sixteen were below 41 years of age 39 were

between 41 and 50 years and 45 were between 51 and 60 years of age (See figure 11 on page

47) Fifty eight of the employees held production level administrative or low-level

management positions seven were middle level managers 12 held upper-level management

positions (management team) and two were CEO(See figure 12) Figure 13 on page 48

depicts the staff by number of years employed

12 The executive secretary functioned as contact person and also coordinated the collection of the anonymous questionnaires


Figure 10 Staff distribution by Gender

14

1227 5 2

58

general staff male

general staff female

middle managementmalemiddle managementfemalemanagement teammalemanagement teamfemalechief executive

Figure 11 Staff distribution by Age

30 - 204 40 - 31

12

60 - 5145

50 - 4139

Figure 12 Total staff distribution CKC BEM

72

1412 2

general staff

middlemanagementmanagementteamchief executive


Figure 13 Staff distribution by Number of Years Employed

5 - 110

15 - 629

25 - 163

35 - 2655

40 - 363

The data gathered was used to test the relationship between the independent and

dependent variables The use of both interviews and survey data could be called triangulation in

that more than one data collection technique was used which allows an analytical view from

different angles collects different forms of data and allows for different levels of analysis It was

considered that the statistical bone added to the qualitative flesh would enhance the

understanding of the research problem

55 Data Analysis

According to Yin (2003) each case study starts with a general analytical strategy to help treat

the evidence fairly to produce convincing conclusions and rule out possible alternative

interpretations (Yin 2003) The analysis compares the generally accepted positive correlation

between transformational leadership and trust and satisfaction on the one hand and the specific

shortcomings in CKC BEM on the other hand The data is displayed in an organized way to

make it easier to draw conclusions The returned questionnaires were coded and the raw data

entered into a generic processing program These data were analyzed using the Statistical

Package for the Social Sciences (SPSS)


Appropriate statistical procedures for description and inference were used The alpha level

was set a priori at 05 As data from the survey was collected through a self-response

questionnaire it was not possible to ensure that respondents answered all items A few

questionnaires had some unanswered items Where more than five consecutive items or an entire

section missed data list-wise deletion was used As a result 49 questionnaires were usable

providing a return of 83

56 Validity and Reliability

To evaluate the quality of qualitative research four tests can be used according to Yin (2003)

bull construct validity

bull internal validity

bull external validity

bull reliability

561 Construct Validity

To increase construct validity (establish correct operational measures for the concepts studied)

Yin (2003) advises using multiple sources establishing a chain of evidence and having key

informants review a draft of the case study report

The researcher used triangulation to gain multiple sources of evidence by interviews and

documentation as well as the MLQ trust and job satisfaction survey Chains of evidence have

been established throughout the thesis by referring to the sources that have been used

562 Internal Validity

Internal validity (Yin 2003) establishes a causal relationship whereby variables are shown to

influence other conditions The MLQ short form 5 x surveys will contribute to the internal

validity of this research as will the trust and job satisfaction survey


563 External Validity

Here the generalizability of the findings is tested Yin advises the use of replication logic by

testing the theory through replication of the findings in similar settings to enable generalization

to a greater number of settings However since research regards a single case study

generalization is contingent to the testing of the theory in one empirical setting

564 Reliability

Reliability is considered as reached if a later investigation obtains the same results under similar

conditions as the previous research The goal of reliability according to Yin (2003) is ldquoto

minimize errors and biases in a studyrdquo Therefore proper documentation of procedures is

required

Bass and Avolio (2004) reported that the reliabilities for the total items and for each

leadership factor scale ranged from 74 to 94 The reliability for all scales exceeded the standard

cut-off for internal consistency of gt 70 They also reported high and positive inter-correlations

for the transformational leadership scales (83) A Cronbach Alpha reliability coefficient was

calculated for the transformational leadership items in the MLQ and obtained a 91 level of

reliability The same was done for the trust scales and reported a reliability level of 81 The

Cronbach Alpha for job satisfaction ranged form 73 to 78 (Cohen 1997 Tsui et al 1992) In

the present study the alpha for job satisfaction ranged from 69 to 94 (See Annexes D-4 - D-6)

The researcherrsquos rationale for a single case study was the holistic approach to test a well-

formulated and empirically supported theory with a clear set of components in a couleur locale

57 Summary

The chapter presented a qualitative and quantitative research strategy The psychometric

properties of the research instruments were reported Cronbach alphas for the research

instruments were reported as shown in table 4 on page 51


Table 4 Cronbach alphas for Transformational Leadership Trust and Job Satisfaction

Bass amp Avolio CKC BEM

MLQ 74 - 94 91

Ciacutti amp Steding CKC BEM TRUST

81

Schriesheim amp Tsui CKC BEM JOB SATISFACTION

73 - 78 69 - 94

Descriptive measures were used to obtain the means and standard deviations For a more

detailed analysis correlations were conducted to detect relations and ways of influences Due to

the relatively low number of participants the Pearson correlation coefficient was used (See

Annex D-7) These results will be presented in chapter 6 Results


CHAPTER SIX

6 RESULTS

61 Introduction

The objective of this study was to test the implications of Transformational Leadership in a

company in a Surinamese setting Specifically the study was aimed at investigating whether

CKC BEMrsquos CEO is practicing Transformational Leadership and learning more about the

relationship between transformational leadership style employee trust and satisfaction in the

organization Finally the study was aimed at sustaining the competencies skills and knowledge

acquired during the MBA program The analysis compared the generally accepted positive

correlation between Transformational Leadership and trust and satisfaction on the one hand and

the specific shortcomings in CKC BEM on the other To accomplish these purposes the study

was designed to explore these questions

RQ1 What evidence exists that Transformational Leadership influences outcome measures in

an organization in a Surinamese setting

RQ2 How can the leadership style employed within CKC BEM best be described

RQ3 Does Transformational Leadership influence employee trust within the CKC BEM

organization

RQ4 Does Transformational Leadership enhance employee satisfaction within CKC BEM

62 Study Findings

In these sections tables and graphs are presented where applicable to identify the results of the findings

621 Research Question 1


organization in an emerging economy This question was assessed using the MLQ


6211 Results of the MLQ

The MLQ consists of 45 items and each item is scored with zero to four points respectively with

the alternatives ldquonot at allrdquo ldquoone in a whilerdquo ldquosometimesrdquo ldquofairly oftenrdquo and ldquofrequently if not

alwaysrdquo The questionnaire measures twelve different scales nine regarding leadership style and

three address ldquoExtra Effortrdquo ldquoEffectivenessrdquo and ldquoSatisfactionrdquo The mean and standard

deviation for each scale are calculated for each subject and serve to get the average measurement

of the organization (Bass 1985) High scores on the leadership style scale indicate that the leader

shows the style frequently whereas high scores on Extra Effort Effectiveness and Satisfaction

indicate high motivation and pleasure of followers Table 5 shows the results of the MLQ The

recommended values for the means of transformational leadership factors should be around 30

for the transactional components Contingent Reward and Management-by-Exception Active 25

whereas the means for Management-by-Exception Passive and Laissez-faire leadership should

not be higher than 10 (Bass 1998) The frequency distribution for the MLQ is depicted in Annex

D-1

In this study all means for the transformational scales are above the optimal values of 30

Table 5 Descriptive Statistics MLQ

Scale N Mean Standard deviation

Transformational components

Idealized influence (attributed) 49 361 109

Idealized influence (behavior) 49 371 106 Inspirational Motivation 49 414 108

Intellectual Stimulation 49 380 100

Individualized Consideration 49 347 104

Transactional components

Contingent reward 49 378 121

Management-by-Exception (active) 49 359 095

Management-by-Exception (passive) 49 269 098

Laissez-faire Leadership 49 218 099

Outcome measurements

Extra effort 49 378 108

Effectiveness 49 367 112

Satisfaction 49 398 112


Contingent Reward and Management-by-Exception Active also scored above the recommended

values All proposed valued were exceeded with a clear detectable trend As recommended by

Bass all transformational scales should reach the highest values and should be followed by the

transactional component of Contingent Reward The present study shows highest values for

Inspirational Motivation and Intellectual Stimulation followed by Contingent Reward Figure 14

illustrates these results

Figure 14 Comparison of MLQ Scales

According to Bass (1998) the transformational leadership style should have a high

correlation with the performance outcomes Extra Effort Effectiveness and Satisfaction as a

result of the motivational inspiration that transformational leaders exert whereas the

Transactional Leadership style should have a lesser correlation Correlations were calculated to

describe the relationship between Transformational Leadership and the performance outcomes

Extra Effort Effectiveness and Satisfaction The correlations were found to be statistically

significant and consistent with Bassrsquos findings as illustrated in tables 6 and 7 The implications

of these results will be discussed

Table 6 Correlation between Transformational Leadership and the Performance Outcomes

Correlation Extra Effort Effectiveness Satisfaction Transformational Leadership 076 064 068


Table 7 Correlation between Transactional Leadership and the Performance Outcomes

Correlation Extra Effort Effectiveness Satisfaction Transactional Leadership 054 057 057


RQ2 How can the leadership style employed within CKC BEM best be described The

leadership style was assessed using the information from the interviews with the CEO and the

management team

6221 Leadership Style

According to the members of the management team the present CEO is a true motivational spirit

who from the very start involved all - then - middle managers in the strategic decision-making

process This was a new approach as they were used to command-and-control type of

management Through a process of training and upgrading they gradually adapted and became so

committed that after two years they could apply for and became ISO-9001-2000 certified These

middle managers now function as the management team and they are responsible for their

respective departments The leadership style of the CEO is characterized as inspirational

motivational and enriching He is ldquoconsiderate of staffrsquos social and work-related problems and

always listens to employeesrsquo suggestionsrdquo ldquoHe has a firm belief in us and in the future of the

organization which has motivated us so far to continue working with the dilapidated equipment

and in this uncertain situationrdquo The leadership also values employee input and implements an

ldquoOpen Door Policyrdquo He often walks around the work environment and interacts with the staff

that experiences him as a ldquopersonrdquo

623 Research Question 3 RQ3 How does Transformational Leadership influence employee trust within the CKC BEM

organization


6231 Results of Trust Based on a five point Likert type scale with responses ranging from strongly disagree (1) to

strongly agree (5) the mean scores for the subscales ranged from 349 to 38 (See table 8) The

frequency distribution is depicted is Annex D-2 Correlation coefficients calculated to describe

the relationship between trust and Transformational Leadership showed a negative relationship

of -014 For Transactional Leadership the correlation with trust measured a -021 relationship

(See table 9)

Table 8 Descriptive Statistics Trust

Scale N Mean Standard Deviation total general nonspecific concept 49 339 0606 total direct communication 49 369 0548 total commitment 49 357 0866 total speedy resolution 49 349 0767 total responsibility 49 38 0735 total closure 49 361 0885 Valid N (list-wise) 49

Table 9 Correlations Between TL and TXL and Trust

Correlation Trust Transformational Leadership -014 Transactional Leadership -021

624 Research Question 4 RQ4 Does Transformational Leadership enhance employee satisfaction within CKC BEM


Job Satisfaction was measured using the six-item Schriesheim and Tsui Job Satisfaction

Questionnaire (See Annex D-3 for the frequency distribution) A five-point Likert scale ranging

from 1 (Strongly disagree) to 5 (Strongly Agree) was applied to assess the construct The mean

scores as illustrated in table 10 for the one-item scales ranged from 163 for salary to 247 for

supervision The correlations found for TL and TXL with Job satisfaction were respectively 018


and 015 (See table 11 on page 57)

Table 10 Descriptive statistics Job Satisfaction

Scale N Mean Standard Deviation Work 49 337 1468 Supervision 49 347 1582 Colleagues 49 339 1483 Salary 49 163 1167 Growth 49 261 1511 Overall 49 294 1464 Valid N (list-wise) 49

Table 11 Correlations between TL and TXL and Job Satisfaction

Correlation Job Satisfaction Transformational Leadership 018 Transactional Leadership 015

63 Discussion of findings

CKC BEM is operating in an unstable uncertain environment with demands from the parent

company for a more competitive and cost-effective operation Budgetary constraints were seen to

restrict the CEO to function in a more pro-active way The lack of essential investments is posing

a heavy burden on the confidence in the future of the enterprise

Comparing the interviews and questionnaires of the MLQ all findings indicated that the

Leadership style is mostly Transformational with Inspirational Motivation scoring the highest

followed by Intellectual Stimulation The Inspirational Motivation style is an effect of the clear

articulation of an appealing vision and challenges followers The staff is thus motivated and

encouraged to fulfill organizational goals and to believe in them Contingent Reward of the

Transactional Style of leadership scored third highest and indicates a good mix of leadership

style given the diversity of the workforce and the relatively high number of the general staff


with lower level education Using the Contingent Reward style the leader clarifies what is

expected from followers and what they will receive if they meet the expectations At CKC BEM

the leadership style seems to fit well into the full scale of leadership styles as developed by Bass

Looking at the performance outcomes to see in which way they are influenced we notice

a value of 378 for Extra Effort 367 for Effectiveness and 398 for Satisfaction All values lie

above the general mean of 20 This indicates that the motivation to work more than expected is

rather high The relatively low score for Effectiveness could be explained as a result of the

general low reward level in the organization Another explanation could be the possible fear of

employees to lose their jobs given the financial position of the company and the ever present

threat of termination of the operation The highest score for Satisfaction is indication of a

situation in which employees generally feel pleasure with the methods of leadership and the way

the leadership works with others

The observed correlation between Transformational and Transactional Leadership style

and the performance outcomes Extra Effort Effectiveness and Satisfaction support Bassrsquos

suggestion (Bass 1998) that the leadership styles should correlate with the performance

outcomes Bass also proposed that the correlations should be higher for Transformational

leadership and less for Transactional leadership (See table 6 on page 54 and table 7 on page 55)

The third and the fourth research questions looked at respectively the inter-relationship

between Transformational Leadership Trust and Job Satisfaction The results indicate a negative

relationship between Transformational Leadership and Trust and no significant relationship

between Transformational Leadership and Job Satisfaction

Transformational leaders empower people to apply extra effort for the group and

progressively exert higher order needs from followers They formulate and communicate

extraordinary visions Transformational leaders have to inspire trust in their followers to become

committed to their visions (Bass amp Avolio 1994) The hypothesis thus stated that there is a

significant relationship between transformational leadership and trust but this hypothesis did not

find support in this research This is understandable given the fact that employees are uncertain

about the future of the company and are dissatisfied with their salaries Although there is firm

belief and confidence in the leader the followers are well aware of the uncertain future of the


company The many changes in leadership combined with the lack of investment in equipment

have scarred their trust and have ingrained the idea that the company is threatened by termination

of operations Furthermore it is safe to say that if the company fails to address this fear and lack

of trust in the intentions of its holding company regarding the future of CKC BEM it is destined

to remain firmly rooted mistrust is probably the single most formidable obstacle in the way of

meaningful and sustained change

Although the hypothesis could not be supported in this study the insight has been gained that

through the transformational leadership style exerted by the CEO he is well appreciated by the

followers who expressed appreciation for his attempts at improvement as well as his


the person of the CEO In fact what appeared is that the trust in the CEO is such that it mitigates

the harmful effects of the distrust in the intentions of the holding company

64 Summary

The chapter presented the results of the interviews and the case-study survey Transformational

Leadership style was recognized as the primary style followed by Transactional Leadership style

which illustrates a good leadership mix given the diverse workforce and the intricate

organizational situation Inspirational Motivation reached the highest value which explains the

high involvement of the CEO the management team and the general staff Moreover the

relationship with the performance outcome were analyzed and correlated with Bassrsquos

suggestions The lowest relationship between the leadership style and the performance outcome

Effectiveness was explained in terms of low trust in the organizational future and low reward

levels The relationship between Transformational Leadership and Trust and the lack of

significant relationship with Job Satisfaction was explained in terms of uncertainty of the future

of the organization given the attitude of the Holding Company and resulting failure to provide

better financial rewards However the leadership style of the CEO with highest score for

Inspirational Motivation greatly compensated and in fact mitigated the harmful effects of the

negative feelings among the majority of the employees towards the Holding company


CHAPTER SEVEN

7 CONCLUSIONS AND PRACTICAL IMPLEMENTATION

71 Introduction



CKC BEMrsquos CEO is practicing Transformational Leadership Moreover the researcher sought

to examine the relationship between transformational leadership style employee trust and

satisfaction in the CKC BEM organization The final objective was to sustain the competencies

skills and knowledge acquired during the MBA program The analysis compared the generally

accepted positive correlation between Transformational Leadership and trust and satisfaction on

the one hand and the specific shortcomings in CKC BEM on the other

In this final chapter the contribution of the study directions for future research and the

limitations of the present study will be discussed The conclusions will be formulated and the

implications for management practices will also be addressed Furthermore some

recommendations will be given based on study findings Possible ways to implement these

recommendations will conclude the chapter

72 Contribution of the Current Study

The current study adds to the researcherrsquos efforts to better understand the influences of

transformational leadership style on employee trust and job satisfaction The fact that the study

was conducted in an organization in an important sector of the Surinamese economy adds to the

understanding of Surinamese organizationsrsquo perception of transformational leadership behavior

however limited and only lifting a tip of the veil


73 Summary and Conclusions

The objectives of the study were



setting




The Purpose of the study was to provide the CKC BEM company with a more profound

insight in the mechanisms of transformational leadership and to find ways to improve on the

overall leadership and deal with the existing organizational problems Moreover the study

results could be used as a source of information to the concrete construction sector for a better

understanding of transformational leadership to develop a competitive advantage in the

globalizing environment Additionally the researcher could convey the knowledge gained to a

wider range of Surinamese companies and an array of other interested parties

Given the frequent changes in CEOs and the employeesrsquo up surging disbelief in the

continuity of the company the overall findings of the study were not surprising They value the

new CEO as the MLQ results confirm but are wary of the failing to invest in resources which

will lead to a better working environment with proper tools and an outlook for proper rewards

Given the high scores it was apparent that the Transformational Leadership style has

proven successful in this company as far as interpersonal relationships are concerned The results

also imply that within CKC BEM this leadership style complements the Transactional style

When the present CEO took over the leadership he attempted to turn the organization

into a profitable entity within three years Recognizing that people are the most important asset

his emphasize was first and foremost on upgrading their skills This objective was met as far as

the quality production technical and sales managers were concerned In this respect his

leadership style helped a lot in motivating the people to exert extra effort The company made

considerable progress in standardizing the production method and became ISO certified in 2003


However as much emphasize as was laid on the other sectors of the company the financial

management was in poor condition and the cash flow management was a daily aggravation The

stand of the Holding company not to invest in the necessary resources for CKC BEM and the

lack of working capital put the CEO in an agonizing position The chief executive was too

occupied with day-to-day managerial activities leaving him insufficient time for creativity and

innovation

One conclusion that has to be drawn from the case is that the leadership of the

organization is not at its optimum in terms of managerial practices There are no effective

managerial audits in place nor can the efficiency of the managers be monitored in an effective

way The company has been plagued by too many leadership changes in a relatively short time

leaving employees uncertain and at times distrustful of the future of the organization

Another conclusion is that no significant correlation was found between the

Transformational Leadership style and Job Satisfaction and a negative correlation was found

between the Leadership style and Trust The chief executiversquos strive to make the best of the

situation without the needed investments has proven an illusion He had to put so much time and

effort in building up a company from scratch without qualified people and without the required

investments that he overlooked the vital aspect cash flow management Too much endurance

was asked from the staff before a prospect for proper financial reward was conceivable As a

result the general staff is gradually losing trust in the future of the company in general and more

particularly in better work conditions of which pay is an essential ingredient This is exemplified

in the results of research questions three and four As much as the staff values the leadership the

case-survey results do not indicate trust in the organization itself nor is there a good deal of

general satisfaction with the job As important as it is to emphasize development of the people

the practice has proven that without the essential investment the organization will not reach the

corporate financial goals if the equipment and machinery are not functioning up to standard nor

will it be possible to offer good working conditions and job satisfaction


74 Recommendations

One of the most important roles for leaders of organizations is to shape the organization to

become a profitable and competitive enterprise where teams find a pleasant environment and

enjoy their work It is important to consider all aspects of the enterprise during this process It is

equally important to realize that although all members of the organization have to be involved

the responsibility begins at the top where the culture is set

The researcherrsquos recommendation for reaping the full benefits is to improve on the

leadership style acquire the needed investments and redesign the organization according to the

star model by JGalbraith in his book Designing Organizations an Executive briefing on

Strategy Structure and Process (See figure 15 on page 64) The researcherrsquos choice for the star

model is that it is a flexible model that can easily be reconfigured to ldquoquickly combine and

recombine skills competencies and resources across the enterprise to respond to changes in the

external environmentrdquo (Galbraith et al 2002)

The strength of the design framework is that it would have to be approached as a holistic

process a group effort to define the strategy with the management team to determine the

organizationrsquos direction and define the competitive advantage Then the formal power and

authority will be determined in the structure and roles In this phase a leadership team would

have to be appointed The responsibilities of the sections will be defined and the interrelationship

will be emphasized The processes and lateral capabilities are the ldquoconnective tissue that

transmits knowledge and resources to where they are neededrdquo (Galbraith 2002) The network

structure is at its best here allowing the organization to bring together the right people from all

over the organization The reward system will bring into line organizational goals with behavior

and performance The people practices are the competences and skills of all within the

organization (Galbraith 2002)

It is important to note that all components have to be properly aligned to prevent

misalignment When developing details a steering committee and work groups would have to be

installed The final phase would be the implementation of the new design where the whole

organization will have to be involved


Figure 15 Galbraiths Star Model

People practices Staffing amp selection

Performance feedback

Structure Power amp authority Reporting Orgroles

Reward systems Goals scorecards amp metrics

Processes and lateral capability Networksprocesses teams integrative roles matrix struct

Strategy Vision

Direction

Source J Galbraith Organizational Design

75 Implications for Management

The ability of management to use Transformational Leadership is largely determined by the

structure and culture of the organization they manage Whereas CKC BEM is still hierarchical

the findings of the current study suggest that the leadership of CKC BEM given the previous

numerous leadership changes should focus on recapturing stability and trust in the future of the

enterprise and providing more equitable rewards to gain overall job satisfaction To reap the full

benefits of transformational leadership the CEO should embark on the process of designing a

new structure in which timely evaluation of management is in place to implement a turnaround

The foremost action to be taken is to convince the Holding Company to invest in essential

resources

According to Bass (1998) transformational leadership can be taught and learned

Transformational leaders can be trained in areas such as critical evaluation and problem


detection envisioning communication skills for conveying a vision and how to empower

employees (Bass 1998) Bass et al (1997) found that the degree of transformational leadership

behavior observed at a superior level was also seen at the next lower level of management

Therefore an effective strategy of instilling transformational leadership in the CKC BEM

organization would be to provide transformational leadership training to top-level managers who

will in turn serve as role models for their lower-level subordinates This cascading down of the

leadership style would help reach organizational goals and objectives and would ultimately

improve the organizational effectiveness of CKC BEM

However the process of change and development of overall organizational leadership is

generally a long-term effort that requires continual updating feedback and modification (Bass

1998) As Bass (1998) points out ldquoWhere it is in short supply transformational leadership

should be encouraged for it can make a big difference in the organizationrsquos performancerdquo As

Senge (1994) put it ldquoin an increasingly dynamic interdependent and unpredictable world it is

simply no longer possible for anyone to figure it all out at the top The old model lsquothe top thinks

and the local actsrsquo must now give way to integrating thinking and acting at all levelsrdquo

Moreover the current financial position requires an immediate focus on investment for

upgrading the production and human resources and an accurate cash flow management

The proposed new structure in which all employees will be involved will result in

employees regaining trust in the organizational future and will enhance job satisfaction

76 Implementation

761 Making Changes

Global competition workforce changes rapidly advancing technology and customer-centered

focus have driven organizations to make changes and to adapt to the new business environment

At the same time reduced budgets and downsizing pressure managers to seek alternatives in

motivating their workforce to increase productivity improve quality and enhance customer

service while reducing costs Leadership is regarded critically in the initiation and

implementation of the transformations in organizations There is a strong need for leaders who


are more change-oriented To survive and succeed in todayrsquos business environment many

companies will have to break down the bureaucratic system to improve their structures and

change their management philosophy One of the most important roles for the CKC BEM chief

executive is to shape the organization to become a profitable and competitive enterprise where

teams find a pleasant environment and enjoy their work It is important to consider all aspects of

the enterprise during this process and it is equally important to realize that although all members

of the organization have to be involved the responsibility begins at the top where the culture is

set

7611 Organizational Structure

The organizational structure determines where formal power and authority are located Vertical

pyramid structures make organizations bureaucratic rigid and ineffective where long lines of

communication narrow spans of control and deterioration of quality and lack of responsiveness

are common Lack of work ethic and inability to respond quickly to market demands result The

CEO has the important role to actively (re)shape the organization it cannot be designed from the

bottom up Although all layers should be involved the design is the responsibility of the leader

and the management team The organizationrsquos functional oriented departments must be realigned

to form customer-oriented teams Staff will have to be cross-trained to handle various types of

jobs They will have to be delegated with authority to resolve customer concerns and needs

Team leaders of the different units who could be former supervisors must become the ones who

help team members adapt successfully to the new environment These team leaders must have

previously received proper training in team building and facilitating skills This new structure

would give employees the needed exposure to customers in order to build customer sensitivity

and at the same time help employees gain insight into the entire operation These teams reduce

the need for external controls and let employees focus on their mission In this way the best ideas

and leadership principles will rapidly spread throughout the entire organization Communication

flow will improve in terms of accuracy speed and responsiveness The team-based change in the

structure will improve operational efficiency open up communication channels where team


members offer better customer service resulting in a competitive organization which ultimately

will gain market share

7612 Managerial Principles

Changes in management philosophy are centered on the use of influence rather than power and

emphasize decision-making through consensual processes rather than directives and orders Not

only management but all in the organization must take responsibility for the success or failure of

the whole company The company under study will need to continue its effort in participative

management The transformational style of leadership should be further enhanced Team leaders

will facilitate the work of the team and manage their interaction with the organization Increased

teamwork and team autonomy can be an effective strategy for increased organizational

effectiveness and employee satisfaction

The transformational leadership style will further motivate all levels of the workforce to

contribute to necessary decisions by means of team approach This will lead to the employeesrsquo

sense of ownership of the company they work for


The incentive program at CKC BEM has to be creatively but radically modified to attach

rewards to team contributions and base incentives on knowledge and skills As an alternative to

the present individual performance evaluation assessment of the team performance as a whole

could be adopted where everyone in the same team receives similar compensation increments

With a non-hierarchical evaluation system and an equitable compensation plan the company will

further motivate its people boost employee morale and gain competitive edge through its human

capital


7614 Training and Development

CKC BEM must prepare its entire workforce for the empowerment and teamwork concept by a

well-designed systematic and sustained training and development program and by allotting

sufficient funds and required resources Employeesrsquo understanding and support of the

organizational changes are essential for its transformation to be successful The training program

should be based on developing basic teamwork skills for employees at all levels to actively

participate in a team-oriented work environment and to practice Transformational Leadership

7615 Implementation Strategy

The leadership role is pivotal in the transformation of an organization (Bass 1994) The leader is

both the keeper of the vision and the architect of the future Therefore significant changes must

start from the top CKC BEMrsquos chief executive needs to serve as a role model of an effective

team player and transformational leader promoting a high involvement leadership philosophy

and taking a long-term approach to managing and developing people Only with firm

commitment from the leadership can a well-organized implementation plan be carried out to

make the necessary changes in structure policies communication and compensation to create an

appropriate working environment to support the transformation To actually implement the lsquoStar

modelrsquo the strategy in terms of vision and mission as well as its short- and long-term goals has

to be set clearly

77 Limitations of the study

The findings of the study should be viewed with a few limitations in mind The use of the MLQ

scale to measure leadership style is fairly new in Suriname and has not been applied across

organizations locally Embarking into MLQ will add a new dimension into the local concept of

leadership style

Another limitation could be sampling bias The number of effective participants was

limited to 49 All respondents were from a single organization which contains the


generalizability of the findings The use of employees alone to measure organizational variables

could have affected the validity of the responses The study is not expected to be representative

of all organizations even of other concrete construction companies It is a start in the local

setting a sample of what could be a better understanding of how Transformational Leadership in

organizations influences variables and how to benefit from this knowledge

78 Directions for further Research

Future research could be conducted to address the limitations addressed above For example

similar future research into a larger number of organizations is needed to stabilize parameter

estimates and to obtain a less restricted range of variable scores Future researchers should also

explore the extent to which the distribution of transformational leadership skills is possible in

other organizations in the same sector As some of the hypothesized relationships were not

supported future research in the same organization is needed to further examine the nature and

progress of these relationships


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New Jersey Lawrence Erlbaum Associates Inc 1998 Bass Bernard M Bass and Stogdillrsquos Handbook of Leadership Theory Research amp

Managerial Applications 3rd ed New York The Free Press 1990 Bass Bernard M Full Range Leadership Development Manual for the multifactor leadership

questionnaire United States of America Mind Garden Inc 1997 Bass Bernard M and Bruce Avolio ed Improving Organizational Effectiveness through

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Marlegravene Amelo MBA-Intake-1 2003 page ii MsMFHR Lim A Po Institute

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Blanchard Kenneth H The Servant Leader Transforming your Heart Head Hands and

Habits Nashville Tennessee J Countryman 2003 Boyett Stephen and Jimmie Boyett The Guru Guide The Best Ideas of the Top Management

Thinkers Stephen Covey Peter Drucker Warren Bennis and others New York John Wiley amp Sons Inc 1998

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Americas Reflection on Suriname and Guyana Edited by Joyce Hoebing Volume VII Study 5 September 25 1996 39-44 Center for Strategic and International Studies (CSIS) Americas Program 1996

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Matters the moderating effect of outcome favorability Administrative Science Quarterly September 1997 [On Line] Retrieved from httpwwwfindarticlescomparticles [2005 March 30]

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York Perennial 1979 Burns James Macgregor Transforming Leadership A New Pursuit of Happiness New York

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CKC BEM NV Annual reports 1999-2004 Paramaribo 2000-2005

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Paramaribo 2004 CKC BEM NV Reorganisatie CKC BEM NV Schatting van de Rentabiliteit en de

Terugverdientijd van de Kosten van Afvloeiing Paramaribo 2001 CKC BEM NV Report of the BEM Taskforce Paramaribo March 1998 CKC BEM NV Survival plan BEM Paramaribo January 2001 CKC HOLDING Co Annual Report 2003 Paramaribo 2004 CKC HOLDING Co Werkgroep Betonsector Rapport Betongroep Paramaribo Mei 2004 CKC Medicare NV Risico Inventarisatie en Evaluatie CKC - Bedrijven BEM By Stichting

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and Related Fields 10th ed Washington DC American Psychological Association 2002 Conger Jay A Leadership and Management in the Information age The Road to Leadership

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Couto Richard A Publications Kellogg leadership studies project Transformational

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Creswell John W Research Design Qualitative Quantitative and Mixed Methods

Approaches 2nd ed Thousand Oaks California Sage Productions 2003 Culbert Samuel A Mind-Set Management The Heart of Leadership New York Oxford

University Press 1996

Marlegravene Amelo MBA-Intake-1 2003 page iv MsMFHR Lim A Po Institute

Daw Kurt Leadership Resources Literature Review RTM Institute for Leadership Ethics amp

Character Kennesaw State University 1996 [On Line] Available httpwwwLeadershipLiteratureReviewhtm [2005 February 8]

Dirks Kurt T Donald L Ferrin Trust in Leadership Meta- Analysis Published in Journal of

Applied Psychology 87 (4) 611-628 2002 Doz Yves Joseacute Santos and Peter Williamson From Global to Metanational United States of

America Harvard Business School Press 2001 Drucker Peter F Harvard Business Review on Knowledge Management The Coming of the

New Organization 6th ed President and Fellows of Harvard College United States of America Harvard Business School Press 1998

Drucker Peter F The Essential Drucker Selection from the Management Works of Peter

FD Drucker United States of America Harper Collins Publishers Inc 2001 Fairholm Gilbert W Leadership and the Culture of Trust weLead Online Magazine Preager

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Farkas Charles M and Suzy Wetlaufer Harvard Business Review on Leadership The Ways

Chief Executive Officers Lead 5th ed President and Fellows of Harvard College United States of America Harvard Business School Press 1998

Feng Jinjuan Jonathan Lazar and Jenny Preece Empathy and Online Interpersonal Trust A

Fragile Relationship Behaviour amp Information Technology March-April 2004 vol 23 no2 97 ndash 106 Taylor and Francis Group 2004 [On line] Retrieved from httpwwwofsmumbcedu~preecepaperskust-paper [2005 May 16]

Fitz-enz Jac The ROI of Human Capital Measuring the Economic Value of Employee

Performance United States of America AMACOM 2000 Freyer Bronwyn Harvard Business Review on What Makes a Leader Leading Trough Rough

Times An Interview with Novellrsquos Eric Schmidt 4th ed Harvard Business School Publishing Corporation United States of America Harvard Business School Press 2001

Galbraith Jay R Designing Organizations An Executive Guide to Strategy Structure and

Progress New and Revised San Francisco Jossey ndash Bass 1995 San Francisco Jossey ndash Bass 2002

Galbraith Jay Diane Downey and Amy Kates Designing Dynamic Organizations A Hands-

on Guide for Leaders at all Levels United States of America AMACOM 2002

Marlegravene Amelo MBA-Intake-1 2003 page v MsMFHR Lim A Po Institute

Garsten Christina and Chris Grey Trust Control and Post-bureaucracy Organizational

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Eli Goldratt Peter Senge Warren Bennis John Kotter Al Ries Jack Trout Philip Kotler John Naisbitt Lester Thurow and Kevin Kelly Kevin Rethinking the Future Rethinking Business principles Competition Control amp Complexity Leadership Markets and the World 4th ed London Nicholas Brealey Publishing 2001

Harbour Jerry L The Basics of Performance Measurement Portland Oregon Productivity

Press 1997 Heling Geert Lecture Notes on Change Management 2004 Hellriegel amp Slocum Organizational Behavior 10th ed Canada Thomson South Western

2004 Hersey Paul Kenneth H Blanchard and Dewey E Johnson Management of Organizational

Behavior Leading Human Recourses 8th ed New Jersey Prentice Hall 2001

Marlegravene Amelo MBA-Intake-1 2003 page vi MsMFHR Lim A Po Institute

Hickman Gill Robinson Publications Kellogg leadership studies project transformational

leadership Working Papers Transforming Organizations to Transform Society The James MacGregor Burns Academy of Leadership Academy of Leadership Press 1997 [On Line] Retrieved from httpwwwacademyumdedupublicationsklspdocstransformational_indexhtm [2005 April 28]

His Majesty King Abdullah II Leadership and Management in the Information age Leadership

and Nation-Building in the Information Age United Arab Emirates The Emirates Center for Strategic Studies and Research 2002

Hoyte Crystal L Ciulla Joanne B Using Advanced Gaming Technology to Teach Leadership

A Research-Based Perspective Foresight and Governance Project Woodrow Wilson International Center for Scholars 2004 [On Line] Retrieved from httpwwwwilsoncenterorgforesight [2005 January 27]

Huling Emily Canrsquot get no [job] satisfaction Rough Notes August 2003 [On Line] Retrieved

from httpwwwfindarticlescomparticles [2005 March 21] Janssens JMAM lsquo-Ogenrsquo doen onderzoek Een inleiding in de methoden van sociaal-

wetenschappelijk onderzoek 4th ed Rotterdam Kanters BV 1986 Koestenbaum Peter Leadership the inner side of greatness a philosophy for leaders New

and revised ed San Francisco Jossey- Bass 2002 Kolader JH Caribbean Single Market amp Economy Een kritische beschouwing Publication

Centrale Bank van Suriname 2005 [On Line] Retrieved from httpwwwcbvssrdutchpublicaties-20050223htm [2005 February 23]

Kolader JH Suriname ndash Caricom Relations in Perspective Paper presented at Institute for

Development Planning and Management Seminar Exploring Agri-Business Opportunities in Caricom Paramaribo Suriname July 1995

Kotter John P Leading Change Boston Massachusetts Harvard Business School Press 1996 Kotter John P Harvard Business Review on Leadership What Leaders Really Do 5th ed

President and Fellows of Harvard College United States of America Harvard Business School Press 1998

Kotter John P John P Kotter on What Leaders Really Do United States of America Harvard

Business Review Press 1999 Kouzes James M amp Barry Z Posner The Leadership Challenge How to Keep Getting

Extraordinary Things Done in Organizations 2nd ed San Francisco Jossey ndash Bass 1995 San Francisco Jossey ndash Bass 1997

Marlegravene Amelo MBA-Intake-1 2003 page vii MsMFHR Lim A Po Institute

KPMG Business Trends Study Suriname KPMG Management Consulting Suriname 1998 Lahiri D Lecture Notes on Strategic Thinking 2004 Lane Christel and Reinhard Bachmann The Social Constitution of Trust Supplier Relations in

Britain and Germany Organization Studies Summer 1996 [On Line] Retrieved from httpwwwfindarticlescomparticles [2005 March 30]

Malhotra Deepak Keith J Murningha The Effects of Contracts on Interpersonal Trust

Administrative Science Quarterly September 2002 [On Line] Retrieved from httpwwwfindarticlescomparticles [2005 March 30]

Maljers Floris A Harvard Business Review on Global Strategies Inside Unilever The Evolving

Transnational Company 7th ed President and Fellows of Harvard College United States of America Harvard Business School Press 1994

Marion Russ and Mary Uhl-Bien Complexity v Transformation The New Leadership

Revisited Paper presented at Managing the Complex IV Conference on Complex Systems and the Management of Organizations Ft Meyers Florida 2002

Northhouse Peter G Leadership Theory and Practice Thousand Oaks California Sage

Productions Inc 2004 Ohmae Kenichi Planting for a Global Harvest Harvard Business Review July-August 1989 Ohmae Kenichi The Borderless World Power and Strategy in the Interlinked Economy 2nd

ed United States of America Harper Perennial 1999 Organ Dennis W and Jack C Davis The Happy Curve ndash Improving Job Satisfaction Business

Horizons May-June 1995 [On Line] Retrieved from httpwwwfindarticlescomparticles [2005 March 30]

Pallant Julie SPSS Survival Manual A Step by Step Guide to Data Analysis using SPSS for

Windows (version 10 and 11) 2001 Pary Ken W Leadership Profiles Beyond 2000 How Australian Leadership is Different

Australian Public Service Commission 1998 [On Line] Retrieved from httpwwwPublicationsampLegislationsgtSpeechesandPressRealeasesgtLeadershipProfilesBeyond2000 [2005 January 24]

PetersThomas J Harvard Business Review on Breakthrough Leadership Sad Facts and Silver

Linings 4th ed Harvard Business School Publishing Corporation United States of America Harvard Business School Press 2001

Marlegravene Amelo MBA-Intake-1 2003 page viii MsMFHR Lim A Po Institute

Pfeffer Jeffrey Competitive Advantage Trough People Unleashing the Power of the Work

Force Boston Massachusetts Harvard Business School Press 1994 Boston Massachusetts Harvard Business School Press 1995

Pfeffer Jeffrey The Human Equation Building Profits by Putting People First Boston

Massachusetts Harvard Business School Press 1998 Podsakoff Phillip M Scott B MacKenzie and William H Bommer Transformational leader

behaviors and substitutes for leadership as determinants of employee satisfaction commitment trust and organizational citizenship behaviors Journal of Management Summer 1996 [On Line] Retrieved from httpwwwfindarticlescomparticles [2005 March 30]

Porter Micheal E The Competitive Advantage of Nations Harvard Business Review March ndash

April 1990 Prentice WCH Inside the Mind of the Leader Understanding Leadership Harvard Business

Review January 2004 Senge Peter M The Fifth Discipline The Art amp Practice of the Learning Organization New

York Doubleday amp Company Inc 1990 New York Doubleday amp Company Inc 1994 Shockley-Zalabak Pamela Kathleen Ellis Ruggero Cesaria International Association of

Business Communicators (IABC) Research Foundation Unveils New Study on Trust Communication World August 2000 [On Line] Retrieved from httpwwwfindarticlescomparticles [2005 March 30]

Sun Tzu The Art of War 3rd ed New York Barnes and Noble Classics 1910 Syptak J Michael David W Marsland Deborah Ulmer Job Satisfaction Putting Theory into

Practice Family Practice Management 1999 [On Line] Retrieved from httpJobSatisfactionPuttingTheoryIntoPractice [2005 January 27]

Teal Thomas Harvard Business Review on Leadership The Human Side of Management 5th

ed President and Fellows of Harvard College United States of America Harvard Business School Press 1998

The Economist Intelligence Unit Limited Country Report Suriname August 2004 London 2004 Tichy Noel M and Nancy Cardwell Foreword by Robert E Knowling jr The Cycle of

Leadership How Great Leaders Teach Their Companies to Win 2nd ed New York Harper Collins Publishers Inc 2004

Marlegravene Amelo MBA-Intake-1 2003 page ix MsMFHR Lim A Po Institute

Turabian KL A Manual for Writers of Term Papers Theses and Dissertations Chicago The

University of Chicago Press 1937 6th edition revised by John Grossman amp Alice Bennett 1996

Ulmer Walter F Publications Kellogg leadership studies project transformational leadership

Working Papers Leadership Learnings and Relearnings The James MacGregor Burns Academy of Leadership Academy of Leadership Press 1997 [On Line] Retrieved from httpwwwacademyumdedupublicationsklspdocstransformational_indexhtm [2005 April 28]

United Nations Development Program Country Watch Report 2004 GDP Rankings ndash Current

Exchange Rate Method [On Line] Retrieved from httpaolcountrywatchcomincludesgrankgdpnumericcer [2005 January 27]

United Nations Development Program Country Watch Report 2004 GDP Rankings ndash

Purchasing Power Parity Method [On Line] Retrieved from httpaolcountrywatchcomincludesgrankglobrank [2005 January 27]

Van der Heijden Beatrice Lecture Notes on Management of Resources Creating Structuring amp

Managing Organizations 2004 Van der Heijden Beatrice IJM and Andre HJ Nijhof The Value of Subjectivity Problems and

Prospects for 360-degree Appraisal Systems The International Journal of Human Resource Management Taylor and Francis Ltd May 2004

Walton Mark S Foreword by William Ury Generating Buy-in Mastering the Language of

Leadership United States of America AMACOM 2004 Wheelen Thomas L and J David Hunger Strategic Management and Business Policy10th ed

United States of America Pearson Education Inc 2004 Williams Roy C and Terrence E Deal When Opposites Dance Balancing the Manager and

Leader Within Palo Alto Davies-Black Publishing 2003 Wren Daniel A The Evolution Management Thought 4th ed United States of America John

Wiley amp Sons Inc 1994 Wright Gregory L Corporate Culture Starts at the Top Hanover Quarterly Winter 2003 [On

Line] Retrieved from httphanovereduhanovertodaypublicationsquarterly [2005 April 28]

Yin Robert K Applications of Case Study Research Applied Social Research Methods Series

Vol 34 2nd ed Thousand Oaks California Sage Productions 2003

Marlegravene Amelo MBA-Intake-1 2003 page x MsMFHR Lim A Po Institute

Yin Robert K Case Study Research Design and Methods Applied Social Research Methods

series Vol 5 3rd ed Thousand Oaks California 2003 Yukl Gary A Leadership in Organizations 5th ed New Jersey Prentice Hall Inc 2003 Zaleznik Abraham Harvard Business Review on Leadership Managers and Leaders Are They

Different 5th ed President and Fellows of Harvard College United States of America Harvard Business School Press 1998

Marlegravene Amelo MBA-Intake-1 2003 page xi MsMFHR Lim A Po Institute

APPENDIX A MAPS

Marlegravene Amelo MBA-Intake-1 2003 page xii MsMFHR Lim A Po Institute

APPENDIX A-1

MAP OF SURINAME

Source Tourist Information Brochure Department of Tourism

Marlegravene Amelo MBA-Intake-1 2003 page xiii MsMFHR Lim A Po Institute

Marlegravene Amelo MBA-Intake-1 2003 page xiv MsMFHR Lim A Po Institute

APPENDIX A-2

MAP OF CARICOM STATES

Source Caricom Files Department of Commerce and Industry Suriname Caricom comprises of 15 member states Antigua and Barbuda Bahamas Barbados Belize Dominica Grenada Guyana Haiti Jamaica Montserrat St Kids and Nevis St Lucia St Vincent amp the Grenadines Trinidad amp Tobago and Suriname

Marlegravene Amelo MBA-Intake-1 2003 page xv MsMFHR Lim A Po Institute

APPENDIX B ORGANIZATIONAL HIERARCHY CKC BEM

Production assistants

Production

RinoOVBFMC 3

Source CKC BEM

CKersten amp Co Holding

Marketing Business

Unit

Roofling material

Internal Audit Security

Human Resources

Stones

Administration Sales Technical department

Delivery Sales

Purchase Dept Debt

CollectionAccounting Stockroom

Finished Products

Excess Materials Gate Control Spareparts Delivery

CEO

Production and Auxiliary

EquipmentWelding Electricity

Motor Vehicles Buildings Premises

Secretariat

Tubes Granito

Supervisory Board

Quality Control

APPENDIX C CASE STUDY DETAILS

Marlegravene Amelo MBA-Intake-1 2003 page xvi MsMFHR Lim A Po Institute

APPENDIX C-1

INTERVIEW QUESTION

Please describe the leadership style of the CEO

Marlegravene Amelo MBA-Intake-1 2003 page xvii MsMFHR Lim A Po Institute

APPENDIX C-2

CASE SURVEY QUESTIONNAIRES COVERING LETTER Paramaribo 27 april 2005 Geachte Heer Mevrouw Als onderdeel van de Master of Business Administration (MBA) studie hebben wij voor de

afstudeer scriptie uw bedrijf uitgekozen om een onderzoek te doen naar het leiderschap binnen

uw organisatie het vertrouwen dat uw leiding u schenkt en de invloed daarvan op uw voldoening

in uw werk en het vertrouwen dat u hebt in uw leiding

Het resultaat van dit onderzoek kan onder andere dienen om meer inzicht te krijgen in het

leiderschap van uw bedrijf en eventueel voorstellen tot verbeteringen te doen

1 U wordt verzocht de vragenlijsten te beantwoorden zoals de instructies aangeven

2 Het is belangrijk dat u weet dat de vragenlijsten anoniem zijn en dat de antwoorden heel

vertrouwelijk worden behandeld

3 Alle gegevens worden anoniem verwerkt en worden alleen door de onderzoeker gezien

4 Wij vragen u dan ook om zo eerlijk en openlijk mogelijk te antwoorden Er zijn geen

foute antwoorden UW MENING TELT

5 Werk individueel

6 Beantwoord u aub ALLE vragen IN EEN KEER

7 De vragenlijsten worden na 3 dagen opgehaald

Wij zijn u dankbaar voor uw ondersteuning en de tijd die u voor ons vrijmaakt

Onderzoeker Supervisor

Marlegravene Amelo Beatrice IJM van der Heijden PhD

MBA Docent Organizational Behavior

Maastricht School of Management

Marlegravene Amelo MBA-Intake-1 2003 page xviii MsMFHR Lim A Po Institute

APPENDIX C-3

MULTIFACTOR LEADERSHIP QUESTIONNAIRE AND SCORING KEY MLQ Multifactor Leadership Questionnaire

Rater Form (5x ndash Short) Name of Leader -------------------------------------------------- Date --------------

Organization ID --------------------------------------------Leader ID --------------------

This questionnaire is to describe the leadership style of the above-mentioned individual as you perceive it Please answer all items on this answer sheet If an item is irrelevant or if you are unsure or do not know the answer leave the answer blank Please answer this questionnaire anonymously

IMPORTANT (necessary for processing) Which describes you _ I am at a higher organizational level than the person I am rating _ The person I am rating is at my organizational level _ I am at a lower organizational than the person I am rating _ I do not wish my organizational level to be known Forty-five descriptive statements are listed on the following pages Judge how frequently each statement fits the person you are describing Use the following rating scale

Not at all Once in a while Sometimes Fairly often Frequently if not always

0 1 2 3 4 THE PERSON I AM RATINGhellip

1 Provides me with assistance in exchange for my efforts 0 1 2 3 4 2 Re-examines critical assumptions to questions whether they are appropriate 0 1 2 3 4 3 Fails to interfere until problems become serious 0 1 2 3 4 4 Fosses attention on irregularities mistakes exceptions and deviations from standards 0 1 2 3 4 5 Avoids getting involved when important issues arrive 0 1 2 3 4 6 Talks about their most important values and beliefs 0 1 2 3 4 7 Is absent when needed 0 1 2 3 4 8 Seeks differing perspectives when solving problems 0 1 2 3 4 9 Talks optimistically about the future 0 1 2 3 4 10 Instills pride in me for being associated with him her 0 1 2 3 4 11 Discusses in specific terms who is responsible for achieving performance targets 0 1 2 3 4 12 Waits for things to go wrong before taking action 0 1 2 3 4 13 Talks enthusiastically about what needs to be accomplished 0 1 2 3 4 14 Specifies the importance of having a strong sense of purpose 0 1 2 3 4 15 Spends time teaching and coaching 0 1 2 3 4 16 Makes clear what one can expect to receive when performance goals are achieved 0 1 2 3 4 17 Shows that heshe is a firm believer in ldquoIf it ainrsquot broken donrsquot fix itrdquo 0 1 2 3 4 18 Goes beyond self-interest for the good of the group 0 1 2 3 4 19 Treats me as an individual rather than just a member of the group 0 1 2 3 4 20 Demonstrates that problems must become chronic before taking action 0 1 2 3 4 21 Acts in ways that builds my respect 0 1 2 3 4 22 Concentrates hisher full attention on dealing with mistakes complaints and failures 0 1 2 3 4 23 Considers the moral and ethical consequences of decisions 0 1 2 3 4 24 Keeps track of all mistakes 0 1 2 3 4 25 Displays a sense of power and confidence 0 1 2 3 4 26 Articulates a compelling vision of the future 0 1 2 3 4 27 Directs my attention toward failures to meet standards 0 1 2 3 4 28 Avoids making decisions 0 1 2 3 4 29 Considers me as having different needs abilities and aspirations from others 0 1 2 3 4 30 Gets me to look at problems from many different angles 0 1 2 3 4 31 Helps me to develop my strengths 0 1 2 3 4 32 Suggests new ways of looking at how to complete assignments 0 1 2 3 4 33 Delays responding to urgent questions 0 1 2 3 4 34 Emphasizes the importance of having a collective sense of mission 0 1 2 3 4 35 Expresses satisfaction when I meet expectations 0 1 2 3 4 36 Expresses confidence that goals will be achieved 0 1 2 3 4 37 Is effective in meeting job-related needs 0 1 2 3 4 38 Uses methods of leadership that are satisfying 0 1 2 3 4 39 Gets me to do more than I expected to do 0 1 2 3 4 40 Is effective in representing me to higher authority 0 1 2 3 4 41 Works with me in a satisfactory way 0 1 2 3 4 42 Heightens my desire to succeed 0 1 2 3 4 43 Is effective in meeting organizational requirements 0 1 2 3 4 44 Increases my willingness to try harder 0 1 2 3 4 45 Leads a group that is effective 0 1 2 3 4

Marlegravene Amelo MBA-Intake-1 2003 page xix MsMFHR Lim A Po Institute

MLQ SCORING KEY

MLQ RATING SCALE

NOT AT ALL 0 ONCE IN A WHILE 1 SOMETIMES 2 FAIRLY OFTEN 3 FREQUENTLY ALWAYS 4

Idealized Influence (Attributed) Qstion Management-by-Exeption (active) Qstion

(IIA) 10 (MBEA) 4 18 22 21 24 25 27

Idealized Influence (Behavior) Qstion Management-by-exeption (passive) Qstion

(IIB) 6 (MBEP) 3 14 12 23 17 34 20 Inspirational Motivation Qstion Laissez-faire Leadership Qstion

(IM) 9 (LF) 5 13 7 26 28 36 33 Intellectual Stimulation Qstion Extra Effort Qstion

(IS) 2 (EXE) 39 8 42 30 44 32 Effevtiveness Qstion Individualized Consideration Qstion (Eff) 37

(IC) 15 40 19 43 29 45 31 Satisfaction Qstion Contingent Reward Qstion (SAT) 38

(CR) 1 41 11 16 35

Marlegravene Amelo MBA-Intake-1 2003 page xx MsMFHR Lim A Po Institute

Marlegravene Amelo MBA-Intake-1 2003 page xxi MsMFHR Lim A Po Institute

APPENDIX C-4

TRUST QUESTIONNAIRE AND SCORING KEY

BUILT ON TRUST ASSESSMENT SCALE

PURPOSE This scale assesses the key aspects of trust in a group or organization

INSTRUCTIONS

Following is a list of statements about your group or organization Please indicate your level of agreement with each statement by circling the corresponding number When you respond to the items think about your group or organization and answer honestly and without thinking too deeply on any one item Go with your first instinct itrsquos usually the most accurate Some statements are strengths and others are weaknesses please be careful to adjust your responses accordingly

BUILT ON TRUST Below is a list of statements about your organization Please indicate how much you agree with each statement by circling the corresponding number Some statements are strengths and others are weaknesses please be careful to adjust your responses accordingly

Strongly Disagree Disagree Neutral Agree Strongly Agree 1 2 3 4 5

Please rate the following itemshellip

1 There is an atmosphere of authentic mutual trust in our organization 1 2 3 4 52 If there was something seriously wrong in our organization I am confident someone would communicate our concerns

1 2 3 4 5

3 Everyone in our organization has a clear sense of our vision 1 2 3 4 54 Our communications end in closure regarding next steps and what tasks need to be done 1 2 3 4 55 Our communications end in closure regarding who will take the next steps 1 2 3 4 56 Our communications end in closure regarding when the next steps and tasks will be done 1 2 3 4 57 Our communications end in closure regarding how to do the next steps and tasks 1 2 3 4 58 People in our organization are afraid of taking risks 1 2 3 4 59 If I were troubled by something regarding our organization I could safely discuss my concerns with my colleagues 1 2 3 4 510 If I were troubled by something regarding our organization I could safely discuss my concerns with the Executive DirectorAdministration

1 2 3 4 5

11 If I were troubled by something one of my colleagues did I could safely approach them with the issue 1 2 3 4 512 If I have a thoughtidea different than others I can safely contribute my thought during the discussion 1 2 3 4 513 If I have a thoughtidea different than others I can safely share my thought with someone after the discussion 1 2 3 4 514 I am very comfortable receiving help from others 1 2 3 4 515 There is an atmosphere of ldquowhat can we learn from thisrdquo when things do not go as expected 1 2 3 4 516 Conflict is handled openly 1 2 3 4 517 Conflict is handled in a timely manner 1 2 3 4 518 Projects have clear outcomes 1 2 3 4 519 Projects have clear action steps 1 2 3 4 520 Projects have clear intermediate milestones 1 2 3 4 521 My colleagues ldquowalk the talkrdquo regarding our organizational values 1 2 3 4 522 The Executive DirectorAdministration ldquowalk the talkrdquo regarding our organizational values 1 2 3 4 523 Communication in our organization is effective 1 2 3 4 524 Communication in our organization is timely 1 2 3 4 525 If there was something seriously wrong in our organization I am confident most of us would seek ways to help 1 2 3 4 526 A ldquothem vs usrdquo dynamic within our organization interferes with our work 1 2 3 4 527 A ldquothem vs usrdquo dynamic with our external partners interferes with our work 1 2 3 4 528 There are unspoken barriers within our organization that make it difficult to get our work done 1 2 3 4 529 When I make a commitment I am confident I will be able to fulfil that commitment 1 2 3 4 530 I am confident that others will follow through on commitments they make 1 2 3 4 531 I am reasonably sure no one I work with harbors resentment or serious unspoken disagreement with me 1 2 3 4 532 Everyone fully shares the risks of change within our organization 1 2 3 4 533 We do a good job of recognizing individual contributions 1 2 3 4 534 We do a good job of recognizing team contributions 1 2 3 4 535 You can get in trouble if you voice concerns in our organization 1 2 3 4 536 A good job is done of addressing marginal performance 1 2 3 4 537 Our work is done to the satisfaction of our external partners 1 2 3 4 538 The commitments made to external partners are done on time 1 2 3 4 539 The norms of our organization effectively facilitate closure and commitment 1 2 3 4 540 This assessment is a 100 positive opportunity to provide feedback to our organization 1 2 3 4 541 My responses are 100 authentic to how I really feelbelieve 1 2 3 4 5

SCORING THE BUILT ON TRUST ASSESSMENT SCALE

Compute the mean of each item from the collective group responses and report them in the first column The means of the items for each aspect of trust (please refer to the key at the end of the scale) can also be grouped together and compared in order to assess the trust level for that aspect In addition percentages can be computed and reported for each item in the relevant columns

Mea

n

Plea

se ra

te

the

follo

win

g ite

mshellip

Stro

ngly

D

isag

ree

Dis

agre

e

Neu

tral

Agr

ee

Stro

ngly

A

gree

Gen 1 There is an atmosphere of authentic mutual trust in our organization 1 2 3 4 5 DC 2 If there was something seriously wrong in our organization I am confident someone

would communicate our concerns 1 2 3 4 5

Gen 3 Everyone in our organization has a clear sense of our vision 1 2 3 4 5 Clo 4 Our communications end in closure regarding next steps and what tasks need to be

done 1 2 3 4 5

Clo 5 Our communications end in closure regarding who will take the next steps 1 2 3 4 5 Clo 6 Our communications end in closure regarding when the next steps and tasks will be

done 1 2 3 4 5

Clo 7 Our communications end in closure regarding how to do the next steps and tasks 1 2 3 4 5 Gen 8 People in our organization are afraid of taking risks 1 2 3 4 5 DC 9 If I were troubled by something regarding our organization I could safely discuss

my concerns with my colleagues 1 2 3 4 5

DC 10 If I were troubled by something regarding our organization I could safely discuss my concerns with the Executive DirectorAdministration

1 2 3 4 5

DC 11 If I were troubled by something one of my colleagues did I could safely approach them with the issue

1 2 3 4 5

DC 12 If I have a thoughtidea different than others I can safely contribute my thought during the discussion

1 2 3 4 5

DC 13 If I have a thoughtidea different than others I can safely share my thought with someone after the discussion

1 2 3 4 5

Rsp 14 I am very comfortable receiving help from others 1 2 3 4 5 SR 15 There is an atmosphere of ldquowhat can we learn from thisrdquo when things do not go as

expected 1 2 3 4 5

DC 16 Conflict is handled openly 1 2 3 4 5 DC 17 Conflict is handled in a timely manner 1 2 3 4 5 Clo 18 Projects have clear outcomes 1 2 3 4 5 Clo 19 Projects have clear action steps 1 2 3 4 5 Clo 20 Projects have clear intermediate milestones 1 2 3 4 5 Gen 21 My colleagues ldquowalk the talkrdquo regarding our organizational values 1 2 3 4 5 Gen 22 The Executive DirectorAdministration ldquowalk the talkrdquo regarding our

organizational values 1 2 3 4 5

DC 23 Communication in our organization is effective 1 2 3 4 5 DC 24 Communication in our organization is timely 1 2 3 4 5 Rsp 25 If there was something seriously wrong in our organization I am confident most of

us would seek ways to help 1 2 3 4 5

Gen 26 A ldquothem vs usrdquo dynamic within our organization interferes with our work 1 2 3 4 5 Gen 27 A ldquothem vs usrdquo dynamic with our external partners interferes with our work 1 2 3 4 5 Gen 28 There are unspoken barriers within our organization that make it difficult to get our

work done 1 2 3 4 5

Cmi 29 When I make a commitment I am confident I will be able to fulfil that commitment

1 2 3 4 5

Cmi 30 I am confident that others will follow through on commitments they make 1 2 3 4 5 SR 31 I am reasonably sure no one I work with harbors resentment or serious unspoken

disagreement with me 1 2 3 4 5

Rsp 32 Everyone fully shares the risks of change within our organization 1 2 3 4 5 Gen 33 We do a good job of recognizing individual contributions 1 2 3 4 5 Gen 34 We do a good job of recognizing team contributions 1 2 3 4 5 DC 35 You can get in trouble if you voice concerns in our organization 1 2 3 4 5 SR 36 A good job is done of addressing marginal performance 1 2 3 4 5 Gen 37 Our work is done to the satisfaction of our external partners 1 2 3 4 5 Cmi 38 The commitments made to external partners are done on time 1 2 3 4 5 Gen 39 The norms of our organization effectively facilitate closure and commitment 1 2 3 4 5 Gen 40 This assessment is a 100 positive opportunity to provide feedback to our

organization 1 2 3 4 5

DC 41 My responses are 100 authentic to how I really feelbelieve 1 2 3 4 5 Key Aspects of Trust Gen = General non-specific concept DC = Direct communication Cmi = Commitment SR = Speedy Resolution Rsp = Responsibility Clo = Closure

Marlegravene Amelo MBA-Intake-1 2003 page xxii MsMFHR Lim A Po Institute

APPENDIX C-5

JOB SATISFACTION QUESTIONNAIRE AND SCORING KEY

JOB SATISFACTION TEST INSTRUCTIONS

Below is a list of statements to asses the degree of satisfaction with the work itself supervision co-workers pay promotion opportunities and the job in general Please indicate how much you agree with each statement by circling the corresponding number Responses are obtained as follows 1= strongly disagree 2 = disagree 3 = neutral 4 = agree and 5 = strongly agree

1 2 3 4 5

1 How satisfied are you with the nature of the work you perform

2 How satisfied are you with the person who supervises you ndash your organizational superior

3 How satisfied are you with your relations with others in the organization with whom you work ndash you co-workers or peers

4 How satisfied are you with the pay you receive for your job

5 How satisfied are you with the opportunities which exist in this organization for advancement and promotion

6 Consider everything how satisfied are you with your current job situation

JOB SATISFACTION SCORING KEY

ASSESSMENT SCALE Qstion JOB SATISFACTION Work 1 STRONLY DISAGREE 1 Supervision 2 DISAGREE 2 Colleagues 3 NEUTRAL 3 Salary 4 AGREE 4 Growth 5 STRONGLY AGREE 5 Overall Job Satisfaction 6

Marlegravene Amelo MBA-Intake-1 2003 page xxiii MsMFHR Lim A Po Institute

APPENDIX D SURVEY RESULTS

Marlegravene Amelo MBA-Intake-1 2003 page xxiv MsMFHR Lim A Po Institute

APPENDIX D-1

FREQUENCY DISTRIBUTION MLQ

Total Idealized Influence Attributed Frequency Percent Valid Percent Cumulative Percent

Valid Not at all 1 7 20 20 Once in a While 8 54 163 184 Sometimes 12 81 245 429 Fairly often 16 108 327 755 Frequently if not always 12 81 245 1000 Total 49 331 1000

Missing System 99 669 Total 148 1000

Total Idealized Influence Behavior Frequency Percent Valid Percent Cumulative Percent



Total Inspirational Motivation Frequency Percent Valid Percent Cumulative Percent



Total Intellectual Stimulation Frequency Percent Valid Percent Cumulative Percent

Valid Once in a While 5 34 102 102 Sometimes 15 101 306 408 Fairly often 14 95 286 694 Frequently if not always 15 101 306 1000 Total 49 331 1000


Total Individualized Consideration Frequency Percent Valid Percent Cumulative Percent



Total Contingent Reward Frequency Percent Valid Percent Cumulative Percent



Marlegravene Amelo MBA-Intake-1 2003 page xxv MsMFHR Lim A Po Institute

Total Management by Exception Passive

Frequency Percent Valid Percent Cumulative Percent Valid Not at all 1 068 204 204

Once in a While 5 338 1020 1224 Sometimes 15 1014 3061 4286 Fairly often 20 1351 4082 8367 Frequently if not always 8 541 1633 10000 Total 49 3311 10000


Total Management by Exception Active Frequency Percent Valid Percent Cumulative Percent



Total Laissez Faire Frequency Percent Valid Percent Cumulative Percent

Valid Not at all 15 1014 3061 3061 Once in a While 15 1014 3061 6122 Sometimes 14 946 2857 8980 Fairly often 5 338 1020 10000 Total 49 3311 10000


Total Extra Effort Frequency Percent Valid Percent Cumulative Percent



Total Effectiveness Frequency Percent Valid Percent Cumulative Percent



Total Satisfaction Frequency Percent Valid Percent Cumulative Percent



Marlegravene Amelo MBA-Intake-1 2003 page xxvi MsMFHR Lim A Po Institute

APPENDIX D-2

FREQUENCY DISTRIBUTION TRUST total general nonspecific concept

Frequency Percent Valid Percent Cumulative Percent Valid Disagree 3 20 61 61

Neutral 24 162 490 551 Agree 22 149 449 1000 Total 49 331 1000


total direct communication


Neutral 14 95 286 306 Agree 33 223 673 980 Strongly Agree 1 7 20 1000 Total 49 331 1000


total commitment




total speedy resolution




total responsibility




total closure

Frequency Percent Valid Percent Cumulative Percent Valid Strongly Disagree 1 7 20 20

Disagree 5 34 102 122 Neutral 11 74 224 347 Agree 27 182 551 898 Strongly Agree 5 34 102 1000 Total 49 331 1000


Marlegravene Amelo MBA-Intake-1 2003 page xxvii MsMFHR Lim A Po Institute

APPENDIX D-3

FREQUENCY DISTRIBUTION JOB SATISFACTION

Work Frequency Percent Valid Percent Cumulative Percent

Valid 0 99 669 669 669 Strongly Disagree 8 54 54 723 Disagree 7 47 47 770 Neutral 8 54 54 824 Agree 11 74 74 899 Strongly Agree 15 101 101 1000 Total 148 1000 1000

Supervision Frequency Percent Valid Percent Cumulative Percent


Colleagues Frequency Percent Valid Percent Cumulative Percent


Salary Frequency Percent Valid Percent Cumulative Percent

Valid 0 99 669 669 669 Strongly Disagree 32 216 216 885 Disagree 12 81 81 966 Agree 1 7 7 973 Strongly Agree 4 27 27 1000 Total 148 1000 1000

Growth Frequency Percent Valid Percent Cumulative Percent


Overall Frequency Percent Valid Percent Cumulative Percent

Valid 0 100 676 676 676 Strongly Disagree 11 74 74 750

Disagree 5 34 34 784 Neutral 14 95 95 878 Agree 9 61 61 939

Strongly Agree 9 61 61 1000 Total 148 1000 1000

Marlegravene Amelo MBA-Intake-1 2003 page xxviii MsMFHR Lim A Po Institute

APPENDIX D-4

RELIABILITY ANALYSIS MLQ

_ R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A) Mean Std Dev Cases 1 VAR00052 34737 14470 380 2 VAR00053 32895 15229 380 3 VAR00054 30263 14975 380 4 VAR00055 38421 13462 380 5 VAR00056 21842 16251 380 6 VAR00057 38947 11807 380 7 VAR00058 21842 13726 380 8 VAR00059 41842 9258 380 9 VAR00060 40000 12734 380 10 VAR00061 35526 12881 380 11 VAR00062 39737 12625 380 12 VAR00063 22368 15323 380 13 VAR00064 43158 9330 380 14 VAR00065 42105 11661 380 15 VAR00066 37895 13588 380 16 VAR00067 40263 11267 380 17 VAR00068 31579 16028 380 18 VAR00069 34474 15888 380 19 VAR00070 34211 17496 380 20 VAR00071 20000 13356 380 21 VAR00072 38158 14305 380 22 VAR00073 35000 14094 380 23 VAR00074 33158 15957 380 24 VAR00075 36053 15164 380 25 VAR00076 39737 12837 380 26 VAR00077 40789 11942 380 27 VAR00078 36053 12201 380 28 VAR00079 18421 13858 380 29 VAR00080 31579 14801 380 30 VAR00081 39211 11713 380 31 VAR00082 41053 11099 380 32 VAR00083 38684 13591 380 33 VAR00084 21053 14666 380 34 VAR00085 41842 10617 380 35 VAR00086 43158 10162 380 36 VAR00087 42632 11073 380 37 VAR00088 37895 11188 380 38 VAR00089 41053 11807 380 39 VAR00090 41579 10274 380 40 VAR00091 37105 14870 380 41 VAR00092 40263 11965 380 42 VAR00001 39211 13230 380 43 VAR00002 41842 10096 380 44 VAR00003 40263 11965 380 45 VAR00004 39474 11377 380 _ R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A) N of Statistics for Mean Variance Std Dev Variables SCALE 1617368 8228478 286853 45 _ _

Marlegravene Amelo MBA-Intake-1 2003 page xxix MsMFHR Lim A Po Institute

R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A) Item-total Statistics Scale Scale Corrected Mean Variance Item- Alpha if Item if Item Total if Item Deleted Deleted Correlation Deleted VAR00052 1582632 7747937 5705 9228 VAR00053 1584474 7806863 4682 9239 VAR00054 1587105 8048058 1860 9268 VAR00055 1578947 7840967 4900 9237 VAR00056 1595526 8074972 1376 9276 VAR00057 1578421 7833798 5761 9230 VAR00058 1595526 8043620 2132 9263 VAR00059 1575526 7896053 6225 9231 VAR00060 1577368 7717127 6998 9218 VAR00061 1581842 7750192 6437 9223 VAR00062 1577632 7845100 5196 9234 VAR00063 1595000 8043108 1863 9268 VAR00064 1574211 7917639 5754 9234 VAR00065 1575263 7800939 6355 9226 VAR00066 1579474 7715107 6556 9221 VAR00067 1577105 7797788 6642 9224 VAR00068 1585789 8079260 1356 9276 VAR00069 1582895 7546977 7518 9207 VAR00070 1583158 7800057 4071 9248 VAR00071 1597368 8363073 -1973 9298 VAR00072 1579211 7695882 6453 9221 VAR00073 1582368 7854289 4485 9241 VAR00074 1584211 7914936 3209 9255 VAR00075 1581316 7930903 3215 9254 VAR00076 1577632 7813748 5549 9231 VAR00077 1576579 7853122 5395 9233 VAR00078 1581316 7953065 3786 9246 VAR00079 1598947 8439886 -2864 9309 VAR00080 1585789 7790612 5034 9235 VAR00081 1578158 7758300 6995 9220 VAR00082 1576316 7818606 6405 9226 VAR00083 1578684 7736849 6258 9224 VAR00084 1596316 8592660 -4486 9328 VAR00085 1575526 7824161 6617 9225 VAR00086 1574211 7850071 6464 9228 VAR00087 1574737 7815533 6472 9226 VAR00088 1579474 7795107 6736 9223 VAR00089 1576316 7779147 6611 9223 VAR00090 1575789 7993855 3857 9246 VAR00091 1580263 7661344 6621 9219 VAR00092 1577105 7795085 6272 9226 _ R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A) Item-total Statistics Scale Scale Corrected Mean Variance Item- Alpha if Item if Item Total if Item Deleted Deleted Correlation Deleted VAR00001 1578158 7711814 6793 9219 VAR00002 1575526 7852809 6459 9228 VAR00003 1577105 7805356 6114 9227 VAR00004 1577895 7900085 4932 9237 Reliability Coefficients N of Cases = 380 N of Items = 45 Alpha = 9256

Marlegravene Amelo MBA-Intake-1 2003 page xxx MsMFHR Lim A Po Institute

R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A) Mean Std Dev Cases 1 TOTCR 37755 12122 490 2 TOTIM 41429 10801 490 3 TOTIIB 37143 10607 490 4 TOTIIA 36122 10958 490 5 TOTIC 34694 10429 490 6 TOTIS 37959 9996 490 N of Statistics for Mean Variance Std Dev Variables SCALE 225102 320884 56647 6 Item-total Statistics Scale Scale Corrected Mean Variance Item- Alpha if Item if Item Total if Item Deleted Deleted Correlation Deleted TOTCR 187347 209906 8668 9178 TOTIM 183673 221956 8574 9188 TOTIIB 187959 231241 7685 9298 TOTIIA 188980 221769 8441 9204 TOTIC 190408 236650 7230 9351 TOTIS 187143 232500 8132 9248 Reliability Coefficients N of Cases = 490 N of Items = 6 Alpha = 9364 R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A) Mean Std Dev Cases 1 TOTEFF 36735 11252 490 2 TOTEXE 37755 10852 490 3 TOTSAT 39796 11271 490 N of Statistics for Mean Variance Std Dev Variables SCALE 114286 81667 28577 3 Item-total Statistics Scale Scale Corrected Mean Variance Item- Alpha if Item if Item Total if Item Deleted Deleted Correlation Deleted TOTEFF 77551 40638 6253 7951 TOTEXE 76531 39396 7078 7123 TOTSAT 74490 38776 6800 7395 Reliability Coefficients N of Cases = 490 N of Items = 3 Alpha = 8178

Marlegravene Amelo MBA-Intake-1 2003 page xxxi MsMFHR Lim A Po Institute

APPENDIX D-5

RELIABILITY ANALYSIS TRUST

R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A) Mean Std Dev Cases 1 VAR00011 34419 12781 430 2 VAR00012 37209 11817 430 3 VAR00013 36279 13097 430 4 VAR00014 37907 10592 430 5 WHONXTST 38837 10956 430 6 VAR00016 38372 11112 430 7 VAR00017 38605 9900 430 8 VAR00018 37674 11513 430 9 VAR00019 39302 8836 430 10 VAR00020 42093 8880 430 11 VAR00021 39767 9383 430 12 VAR00022 39767 7712 430 13 VAR00023 40698 9610 430 14 VAR00024 43953 6226 430 15 VAR00025 40000 10235 430 16 VAR00026 35581 14193 430 17 VAR00027 34186 11177 430 18 VAR00028 33721 14313 430 19 VAR00029 40465 9989 430 20 VAR00030 35581 10534 430 21 VAR00031 36977 11241 430 22 VAR00032 34884 12223 430 23 VAR00033 35116 12026 430 24 VAR00034 31860 9576 430 25 VAR00035 38605 10597 430 26 VAR00036 29767 14056 430 27 VAR00037 23721 12540 430 28 VAR00038 34419 12402 430 29 VAR00039 41395 8333 430 30 VAR00040 33256 10402 430 31 VAR00041 34419 10977 430 32 VAR00042 33256 10402 430 33 VAR00043 38372 9983 430 34 VAR00044 34651 11619 430 35 VAR00045 27209 12597 430 36 VAR00046 32326 12118 430 37 VAR00047 38605 9900 430 38 VAR00048 35116 10550 430 39 VAR00049 32558 10257 430 40 VAR00051 44884 7028 430 N of Statistics for Mean Variance Std Dev Variables SCALE 1455814 2942016 171523 40 _

Marlegravene Amelo MBA-Intake-1 2003 page xxxii MsMFHR Lim A Po Institute

R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A) Item-total Statistics Scale Scale Corrected Mean Variance Item- Alpha if Item if Item Total if Item Deleted Deleted Correlation Deleted VAR00011 1421395 2693134 5544 8501 VAR00012 1418605 2895515 0809 8616 VAR00013 1419535 2630454 6930 8463 VAR00014 1417907 2672647 7454 8468 WHONXTST 1416977 2662159 7492 8464 VAR00016 1417442 2644806 7882 8454 VAR00017 1417209 2721584 6448 8495 VAR00018 1418140 3080598 -3757 8713 VAR00019 1416512 2813278 4080 8545 VAR00020 1413721 2891916 1398 8592 VAR00021 1416047 2747209 5980 8508 VAR00022 1416047 2793400 5535 8526 VAR00023 1415116 2875415 1760 8588 VAR00024 1411860 2854408 3980 8556 VAR00025 1415814 2790587 4122 8541 VAR00026 1420233 2668804 5457 8500 VAR00027 1421628 2676633 6915 8476 VAR00028 1422093 2873599 0988 8627 VAR00029 1415349 2705404 6897 8485 VAR00030 1420233 2778804 4331 8536 VAR00031 1418837 2644385 7796 8455 VAR00032 1420930 2839911 2116 8587 VAR00033 1420698 2703998 5652 8501 VAR00034 1423953 2871971 1876 8585 VAR00035 1417209 2763012 4762 8527 VAR00036 1426047 3002447 -1646 8695 VAR00037 1432093 3091694 -3751 8726 VAR00038 1421395 2850277 1823 8595 VAR00039 1414419 2800144 4838 8534 VAR00040 1422558 2790520 4048 8543 VAR00041 1421395 2781705 4049 8542 VAR00042 1422558 2718140 6212 8497 VAR00043 1417442 2843854 2619 8572 VAR00044 1421163 2869147 1508 8599 VAR00045 1428605 3035991 -2502 8699 VAR00046 1423488 2925183 0052 8635 VAR00047 1417209 2741107 5830 8508 VAR00048 1420698 2808283 3467 8555 VAR00049 1423256 2823677 3128 8562 VAR00051 1410930 2899435 1573 8586 _ R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A) Reliability Coefficients N of Cases = 430 N of Items = 40 Alpha = 8588

Marlegravene Amelo MBA-Intake-1 2003 page xxxiii MsMFHR Lim A Po Institute

R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A) Mean Std Dev Cases 1 TOTGNSC 33878 6061 490 2 TOTDC 36939 5479 490 3 TOTCMI 35714 8660 490 4 TOTSR 34898 7671 490 5 TOTRSP 37959 7354 490 6 TOTCLO 36122 8854 490 N of Statistics for Mean Variance Std Dev Variables SCALE 215510 104609 32343 6 Item-total Statistics Scale Scale Corrected Mean Variance Item- Alpha if Item if Item Total if Item Deleted Deleted Correlation Deleted TOTGNSC 181633 80978 5786 7926 TOTDC 178571 81667 6368 7861 TOTCMI 179796 72287 5330 8037 TOTSR 180612 76003 5372 7990 TOTRSP 177551 74388 6185 7812 TOTCLO 179388 66420 6650 7707 Reliability Coefficients N of Cases = 490 N of Items = 6 Alpha = 8179

Marlegravene Amelo MBA-Intake-1 2003 page xxxiv MsMFHR Lim A Po Institute

APPENDIX D-6

RELIABILITY ANALYSIS JOB SATISFACTION

R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A) Mean Std Dev Cases 1 VAR00005 11149 17977 1480 2 VAR00006 11486 18712 1480 3 VAR00007 11216 18104 1480 4 VAR00008 5405 10194 1480 5 VAR00009 8649 15058 1480 6 VAR00010 9730 16202 1480 N of Statistics for Mean Variance Std Dev Variables SCALE 57635 762634 87329 6 Item-total Statistics Scale Scale Corrected Mean Variance Item- Alpha if Item if Item Total if Item Deleted Deleted Correlation Deleted VAR00005 46486 492499 9426 9274 VAR00006 46149 491364 9006 9335 VAR00007 46419 505171 8731 9366 VAR00008 52230 638343 6992 9582 VAR00009 48986 551257 8439 9399 VAR00010 47905 531327 8681 9367 Reliability Coefficients N of Cases = 1480 N of Items = 6 Alpha = 9491

Marlegravene Amelo MBA-Intake-1 2003 page xxxv MsMFHR Lim A Po Institute

APPENDIX D-7

PEARSONrsquoS CORRELATION TESTS

Correlatie berekening tussen MLQ_IM en TRUST

Uit de vragen betreffende TRUST kiezen we op het oog vraag 1 als een voor de hand liggende belangrijke Factor

1 Er heerst een oprechte sfeer van vertrouwen in onze organisatie

helemaal niet mee eens

niet mee eens

neutraal mee eens helemaal mee eens

1 2 3 4 5

Uit de MLQ vragen nemen we (het gemiddelde van) de IM vragen (vraag 91326 en 36)

9 Praat optimistisch over de toekomst

13 Praat enthousiast over wat behaald moet worden

26 Verwoordt een pakkende toekomstvisie

36 Drukt vertrouwen uit in het behalen van doelen

helemaal niet af en toe soms redelijk vaak vaak zo niet altijd

0 1 2 3 4

resp MLQ_IM v r a g e ngemiddelde 9 13 26 36

1 300 4250 4400 4 Pearson -02115818400 4 Correlatie tussen 400 5 TRUST en MLQ_IM400 4300 4300 4150 4150 5 021158185 (=Pearson)275 5 004476688 (=kwadraat van Pearson)350 3375 5300 5350 5025 5125 5

300 3 2 3 42 250 3 3 1 33 400 4 4 4 44 400 4 4 4 45 400 4 4 4 46 400 4 4 4 47 SUMMARY OUTPUT 300 4 4 0 48 300 3 4 2 39 Regression Statistics 150 3 1 2 010 Multiple R 150 3 1 2 011 R Square 275 3 3 3 212 Adjusted R Square 002444277 350 3 4 4 313 Standard Error 12283979 375 4 4 3 414 Observations 49 300 4 3 4 115 350 3 3 4 416 ANOVA 025 0 0 0 117 df SS MS F ignificance F 125 2 1 1 118 Regression 1 3323712 3323712 2202649 014445 175 1 4 1 119 Residual 47 7092119 1508961 350 4 2 4 420 Total 48 742449 375 3 4 4 421 400 4 4 4 422 Coefficients

175 3350 4375 4400 2325 1 tandard Err t Stat P-value Lower 95Upper 95ower 950Upper 950 325 4 3 3 3

23 Intercept 429881326 0559588 7682101 762E-10 3173068 5424559 3173068 5424559 325 3 4 2 424 X Variable 1 -02633175 0177422 -148413 014445 -062024 0093609 -062024 0093609 250 1 3 3 325 400 4 4 4 426 225 0 3 3 327 200 1 3 2 228 150 1 3 0 229 400 4 4 4 430 400 4 4 4 431 350 3 4 4 332 350 4 3 4 333 250 1 3 3 334 350 4 3 3 435 300 3 3 3 336 375 4 4 3 437 125 0 2 1 238 400 4 4 4 439 300 3 3 3 340 350 3 4 3 441 400 4 4 4 442 400 4 4 4 443 400 4 4 4 444 300 1 3 4 445 350 4 3 4 346 250 3 2 3 247 350 4 3 3 448 200 3 2 3 049 067 2 0 0

TRUST vraag 1

MLQ_IM gemiddelde

325 3250 3400 2225 4200 4150 3400 5400 2350 4350 5250 2350 4300 3375 4125 5400 2300 2350 1400 3400 2400 2300 4350 5250 2350 2200 1050 4

Marlegravene Amelo MBA-Intake-1 2003 page xxxvi MsMFHR Lim A Po Institute

Correlatie berekening tussen MLQ_IM en TRUST_Recoded

neutraal0

neutraal

0




niet mee eens


1 2 3 4 5


9 Praat optimistisch over de toekomst 13 Praat enthousiast over wat behaald moet worden 26 Verwoordt een pakkende toekomstvisie 36 Drukt vertrouwen uit in het behalen van doelen


0 1 2 3 4

r e c o d e d

resp ` MLQ_IM v r a g e n v r a g e ngemiddelde 9 13 26 36 9 13 26 36

1 4 075 1 0 1 1 3 2 3 42 4 050 1 1 -1 1 3 3 1 33 4 100 1 1 1 1 4 4 4 44 4 100 1 1 1 1 4 4 4 45 5 100 1 1 1 1 4 4 4 46 4 100 1 1 1 1 4 4 4 47 4 SUMMARY OUTPUT 050 1 1 -1 1 4 4 0 48 4 075 1 1 0 1 3 4 2 39 4 Regression Statistics -025 1 -1 0 -1 3 1 2 010 5 Multiple R 024881071 -025 1 -1 0 -1 3 1 2 011 5 R Square 006190677 075 1 1 1 0 3 3 3 212 3 Adjusted R Square 004194734 100 1 1 1 1 3 4 4 313 5 Standard Error 085674864 100 1 1 1 1 4 4 3 414 5 Observations 49 050 1 1 1 -1 4 3 4 115 5 100 1 1 1 1 3 3 4 416 5 ANOVA -100 -1 -1 -1 -1 0 0 0 117 5 df SS MS F Significance F -075 0 -1 -1 -1 2 1 1 118 3 Regression 1 2276653 2276653 31016301 008471872 -050 -1 1 -1 -1 1 4 1 119 4 Residual 47 3449886 0734018 075 1 0 1 1 4 2 4 420 4 Total 48 3677551 100 1 1 1 1 3 4 4 421 2 100 1 1 1 1 4 4 4 422 1 Coefficients

re-coded

negatief

re-coded

negatief positief

-1 1

positief-1 1

075 1050 1100 1 Pearson -02488107100 1 Correlatie tussen 100 1 TRUST en MLQ_IM100 1050 1075 1

-025 1-025 1075 1100 0100 1050 1100 1

-100 1-075 1-050 0075 1100 1100 -1100 -1 tandard Err t Stat P-value Lower 95 Upper 95 Lower 950 Upper 950 100 1 1 1 1 4 3 3 3

23 3 Intercept 055828571 0179713 3106539 000320656 0196749908 091982152 0196749908 091982152 075 1 1 0 1 3 4 2 424 3 X Variable 1 -03817143 0216742 -176114 008471872 -0817742874 0054314302 -0817742874 0054314302 050 -1 1 1 1 1 3 3 325 2 100 1 1 1 1 4 4 4 426 4 050 -1 1 1 1 0 3 3 327 4 000 -1 1 0 0 1 3 2 228 3 -025 -1 1 -1 0 1 3 0 229 5 100 1 1 1 1 4 4 4 430 2 100 1 1 1 1 4 4 4 431 4 100 1 1 1 1 3 4 4 332 5 100 1 1 1 1 4 3 4 333 2 050 -1 1 1 1 1 3 3 334 4 100 1 1 1 1 4 3 3 435 3 100 1 1 1 1 3 3 3 336 4 100 1 1 1 1 4 4 3 437 5 -050 -1 0 -1 0 0 2 1 238 2 100 1 1 1 1 4 4 4 439 2 100 1 1 1 1 3 3 3 340 1 100 1 1 1 1 3 4 3 441 3 100 1 1 1 1 4 4 4 442 2 100 1 1 1 1 4 4 4 443 2 100 1 1 1 1 4 4 4 444 4 050 -1 1 1 1 1 3 4 445 5 100 1 1 1 1 4 3 4 346 2 050 1 0 1 0 3 2 3 247 2 100 1 1 1 1 4 3 3 448 1 025 1 0 1 -1 3 2 3 049 4 -075 0 -1 -1 -1 2 0 0

r e c o d e dTRUST vraag 1

TRUST vraag 1

MLQ_IM gemiddelde

075 0050 0100 -1050 1000 1

-025 0100 1100 -1100 1100 1050 -1100 1100 0100 1

-050 1100 -1100 -1100 -1100 0100 -1100 -1050 1100 1050 -1100 -1025 -1

-075 1

Marlegravene Amelo MBA-Intake-1 2003 page xxxvii MsMFHR Lim A Po Institute

Correlatie berekening tussen MLQ_IM en SATISFACTION

Uit de vragen betreffende SATISFACTION kiezen we op het oog vraag 6 als een voor de hand liggende belangrijke Factor

6 Alles bij elkaar genomen ben ik tevreden met mijn huidige werksituatie


niet mee eens


1 2 3 4 5







0 1 2 3 4


1 300250400 Pearson -00215843400 Correlatie tussen 400 SATISFACTION en MLQ_IM400300300150150 002158427 (=Pearson)275 000046588 (=kwadraat van Pearson)350375300350025125

4 300 3 2 3 42 4 250 3 3 1 33 3 400 4 4 4 44 5 400 4 4 4 45 1 400 4 4 4 46 4 400 4 4 4 47 4 SUMMARY OUTPUT 300 4 4 0 48 1 300 3 4 2 39 4 Regression Statistics 150 3 1 2 010 5 Multiple R 150 3 1 2 011 1 R Square 275 3 3 3 212 2 Adjusted R Square -00208008 350 3 4 4 313 2 Standard Error 14787029 375 4 4 3 414 0 Observations 49 300 4 3 4 115 2 350 3 3 4 416 4 ANOVA 025 0 0 0 117 5 df SS MS F ignificance F 125 2 1 1 118 3 Regression 1 00479 00479 0021907 0882969 175 1 4 1 119 3 Residual 47 1027684 2186562 350 4 2 4 420 5 Total 48 1028163 375 3 4 4 421 1 400 4 4 4 422 1 Coefficients

175350375400325 tandard Err t Stat P-value Lower 95Upper 95ower 950Upper 950 325 4 3 3 3

23 3 Intercept 303344686 0673613 4503249 441E-05 1678314 438858 1678314 438858 325 3 4 2 424 3 X Variable 1 -00316109 0213574 -014801 0882969 -046127 0398045 -046127 0398045 250 1 3 3 325 3 400 4 4 4 426 2 225 0 3 3 327 3 200 1 3 2 228 1 150 1 3 0 229 1 400 4 4 4 430 2 400 4 4 4 431 1 350 3 4 4 332 1 350 4 3 4 333 4 250 1 3 3 334 1 350 4 3 3 435 3 300 3 3 3 336 4 375 4 4 3 437 3 125 0 2 1 238 5 400 4 4 4 439 3 300 3 3 3 340 3 350 3 4 3 441 5 400 4 4 4 442 5 400 4 4 4 443 5 400 4 4 4 444 3 300 1 3 4 445 5 350 4 3 4 346 3 250 3 2 3 247 3 350 4 3 3 448 4 200 3 2 3 049 1 067 2 0 0

STATISFACTION vraag 6

MLQ_IM gemiddelde

325250400225200150400400350350250350300375125400300350400400400300350250350200050

299 29 Gemiddelde 300 30 31 29 30100 15 Stand Deviatie 099 12 11 13 12

Marlegravene Amelo MBA-Intake-1 2003 page xxxviii MsMFHR Lim A Po Institute

DEDICATIONS

ACKNOWLEDGEMENTS

TABLE OF CONTENTS

LIST OF TABLES

LIST OF FIGURES

LIST OF ABREVIATIONS

LIST OF APPENDIXES

ABSTRACT


11 Introduction

Definition of the Problem

Research Questions

Objectives of the Research



Organization of the Study

Constraints of the Study


21 Introduction


221 Leadership


24 CKC BEM



2412 Infrastructure

2413 Management Philosophy

Communication Flow

Incentive Program

Opportunities and Threats

Summary

3 LITERATURE REVIEW

31 Introduction


















38 Summary


41 Introduction

Hypothesis

Implementation of Conceptual Model

44 Summary


51 Introduction


Independent Variable


523 Influence

53 Research Design

54 Data Collection

55 Data Analysis




External Validity

Reliability

57 Summary

6 RESULTS

61 Introduction

Study Findings

Research Question 1

Results of the MLQ

Research Question 2

Leadership Style

Research Question 3

Results of Trust

Research Question 4

Results of Job Satisfaction

Discussion of findings

Summary

CONCLUSIONS AND PRACTICAL IMPLEMENTATION

71 Introduction

Contribution of the Current Study


74 Recommendations


76 Implementation

761 Making Changes

Organizational Structure

Managerial Principles

Incentive Program

Training and Development

Implementation Strategy

Limitations of the study

Directions for further Research


APPENDIX A MAPS






BY


(SURINAME)

This paper was submitted in partial fulfillment of the requirements for the Masters of Business Administration (MBA) degree at the Maastricht School of Management (MSM) Maastricht the Netherlands July 29 2005 Maastricht School of Management FHR Lim A Po Institute For Social Studies POBox 1203 POBox 12340 6201 BE Maastricht Paramaribo The Netherlands Suriname July 2005



John F Kennedy


DEDICATIONS








ACKNOWLEDGEMENTS











































6 RESULTS 52
























ABSTRACT



























Social Sciences

































CHAPTER 1


11 Introduction


































































described




within CKC BEM




setting












consultant















needs




















indirectly affected



























Source Author


CHAPTER 2


21 Introduction



























































enlarged market

221 Leadership

















































24 CKC BEM





















2001 211098300 101255800 149760200 (48504400)

2000 200587500 122478700 136615800 (14137100)

1999 169809500 71897500 99582700 (27685200)

1998 113576600 48411900 46451300 1960600



















































2412 Infrastructure












0

20

40

60

80

100

120


Staff 10 12 8 8 9 7 7CAO 107 97 91 81 77 66 60

1998 1999 2000 2001 2002 2003 2004






199916

200021

20019

200219

200320

200415

199920002001200220032004

Sick Leave 1999 2000 2001 2002 2003 2004





















gain market share




















machines






1998

1999

2000

2001

2002

2003

2004

-200000400000600000800000

1000000120000014000001600000

Tube Production

tubes 343700 192400 247200 677700 1104100 1458000 873813

1998 1999 2000 2001 2002 2003 2004





1998

1999

2000

2001

2002

2003

2004

0

500000

1000000

1500000

2000000

Stones Production

Stones 1315037 1253702 1010861 11112900 15372800 19407600 12224490

1998 1999 2000 2001 2002 2003 2004
































secondary benefits

















25 Summary











CHAPTER 3

3 LITERATURE REVIEW

31 Introduction
































































































Source Author




















Yammarino 2002 p 7)





























Irsquos

Irsquos

CR

MBE-A

MBE-P

LF

CR

MBE-A

MBE-P

LF


















































































































Transformational



















Beyond Expectations











































when needed
















































commitment)


















organization











































work

38 Summary



















CHAPTER FOUR


41 Introduction






















Satisfaction










42 Hypothesis























described




within CKC BEM









44 Summary









CHAPTER FIVE


51 Introduction






























MLQ




















523 Influence





comprise














53 Research Design





















54 Data Collection









































14

1227 5 2

58

general staff male




30 - 204 40 - 31

12

60 - 5145

50 - 4139


72

1412 2

general staff




5 - 110

15 - 629

25 - 163

35 - 2655

40 - 363







55 Data Analysis





















bull reliability


















564 Reliability




required











57 Summary







MLQ 74 - 94 91


81


73 - 78 69 - 94






CHAPTER SIX

6 RESULTS

61 Introduction














organization


62 Study Findings



















D-1










































management team
















organization







(See table 9)









































































64 Summary
















CHAPTER SEVEN


71 Introduction

























setting






























innovation






















74 Recommendations



































Strategy Vision

Direction











resources























76 Implementation

761 Making Changes















set










































capital



















to be set clearly





leadership style















































































































































































































APPENDIX A MAPS


APPENDIX A-1

MAP OF SURINAME




APPENDIX A-2






Production

RinoOVBFMC 3

Source CKC BEM


Marketing Business

Unit

Roofling material


Human Resources

Stones


Delivery Sales

Purchase Dept Debt


Finished Products


CEO




Secretariat

Tubes Granito

Supervisory Board

Quality Control



APPENDIX C-1

INTERVIEW QUESTION



APPENDIX C-2













5 Werk individueel









APPENDIX C-3










MLQ SCORING KEY

MLQ RATING SCALE



(IIA) 10 (MBEA) 4 18 22 21 24 25 27






(CR) 1 41 11 16 35



APPENDIX C-4




INSTRUCTIONS






1 2 3 4 5


1 2 3 4 5




Mea

n

Plea

se ra

te

the

follo

win

g ite

mshellip

Stro

ngly

D

isag

ree

Dis

agre

e

Neu

tral

Agr

ee

Stro

ngly

A

gree




done 1 2 3 4 5


done 1 2 3 4 5




1 2 3 4 5


1 2 3 4 5


1 2 3 4 5


1 2 3 4 5


expected 1 2 3 4 5






work done 1 2 3 4 5


1 2 3 4 5







APPENDIX C-5




1 2 3 4 5












APPENDIX D-1









































APPENDIX D-2









total commitment












total closure





APPENDIX D-3

















APPENDIX D-4








APPENDIX D-5








APPENDIX D-6




APPENDIX D-7






niet mee eens


1 2 3 4 5







0 1 2 3 4






TRUST vraag 1

MLQ_IM gemiddelde

325 3250 3400 2225 4200 4150 3400 5400 2350 4350 5250 2350 4300 3375 4125 5400 2300 2350 1400 3400 2400 2300 4350 5250 2350 2200 1050 4



neutraal0

neutraal

0




niet mee eens


1 2 3 4 5




0 1 2 3 4

r e c o d e d



re-coded

negatief

re-coded

negatief positief

-1 1

positief-1 1


-025 1-025 1075 1100 0100 1050 1100 1




TRUST vraag 1

MLQ_IM gemiddelde

075 0050 0100 -1050 1000 1

-025 0100 1100 -1100 1100 1050 -1100 1100 0100 1

-050 1100 -1100 -1100 -1100 0100 -1100 -1050 1100 1050 -1100 -1025 -1

-075 1






niet mee eens


1 2 3 4 5







0 1 2 3 4







MLQ_IM gemiddelde

325250400225200150400400350350250350300375125400300350400400400300350250350200050



DEDICATIONS

ACKNOWLEDGEMENTS

TABLE OF CONTENTS

LIST OF TABLES

LIST OF FIGURES


LIST OF APPENDIXES

ABSTRACT


11 Introduction


Research Questions







21 Introduction


221 Leadership


24 CKC BEM



2412 Infrastructure


Communication Flow

Incentive Program


Summary

3 LITERATURE REVIEW

31 Introduction


















38 Summary


41 Introduction

Hypothesis


44 Summary


51 Introduction




523 Influence

53 Research Design

54 Data Collection

55 Data Analysis




External Validity

Reliability

57 Summary

6 RESULTS

61 Introduction

Study Findings

Research Question 1

Results of the MLQ

Research Question 2

Leadership Style

Research Question 3

Results of Trust

Research Question 4



Summary


71 Introduction



74 Recommendations


76 Implementation

761 Making Changes



Incentive Program






APPENDIX A MAPS






John F Kennedy


DEDICATIONS








ACKNOWLEDGEMENTS











































6 RESULTS 52
























ABSTRACT



























Social Sciences

































CHAPTER 1


11 Introduction


































































described




within CKC BEM




setting












consultant















needs




















indirectly affected



























Source Author


CHAPTER 2


21 Introduction



























































enlarged market

221 Leadership

















































24 CKC BEM





















2001 211098300 101255800 149760200 (48504400)

2000 200587500 122478700 136615800 (14137100)

1999 169809500 71897500 99582700 (27685200)

1998 113576600 48411900 46451300 1960600



















































2412 Infrastructure












0

20

40

60

80

100

120


Staff 10 12 8 8 9 7 7CAO 107 97 91 81 77 66 60

1998 1999 2000 2001 2002 2003 2004






199916

200021

20019

200219

200320

200415

199920002001200220032004

Sick Leave 1999 2000 2001 2002 2003 2004





















gain market share




















machines






1998

1999

2000

2001

2002

2003

2004

-200000400000600000800000

1000000120000014000001600000

Tube Production

tubes 343700 192400 247200 677700 1104100 1458000 873813

1998 1999 2000 2001 2002 2003 2004





1998

1999

2000

2001

2002

2003

2004

0

500000

1000000

1500000

2000000

Stones Production

Stones 1315037 1253702 1010861 11112900 15372800 19407600 12224490

1998 1999 2000 2001 2002 2003 2004
































secondary benefits

















25 Summary











CHAPTER 3

3 LITERATURE REVIEW

31 Introduction
































































































Source Author




















Yammarino 2002 p 7)





























Irsquos

Irsquos

CR

MBE-A

MBE-P

LF

CR

MBE-A

MBE-P

LF


















































































































Transformational



















Beyond Expectations











































when needed
















































commitment)


















organization











































work

38 Summary



















CHAPTER FOUR


41 Introduction






















Satisfaction










42 Hypothesis























described




within CKC BEM









44 Summary









CHAPTER FIVE


51 Introduction






























MLQ




















523 Influence





comprise














53 Research Design





















54 Data Collection









































14

1227 5 2

58

general staff male




30 - 204 40 - 31

12

60 - 5145

50 - 4139


72

1412 2

general staff




5 - 110

15 - 629

25 - 163

35 - 2655

40 - 363







55 Data Analysis





















bull reliability


















564 Reliability




required











57 Summary







MLQ 74 - 94 91


81


73 - 78 69 - 94






CHAPTER SIX

6 RESULTS

61 Introduction














organization


62 Study Findings



















D-1










































management team
















organization







(See table 9)









































































64 Summary
















CHAPTER SEVEN


71 Introduction

























setting






























innovation






















74 Recommendations



































Strategy Vision

Direction











resources























76 Implementation

761 Making Changes















set










































capital



















to be set clearly





leadership style















































































































































































































APPENDIX A MAPS


APPENDIX A-1

MAP OF SURINAME




APPENDIX A-2






Production

RinoOVBFMC 3

Source CKC BEM


Marketing Business

Unit

Roofling material


Human Resources

Stones


Delivery Sales

Purchase Dept Debt


Finished Products


CEO




Secretariat

Tubes Granito

Supervisory Board

Quality Control



APPENDIX C-1

INTERVIEW QUESTION



APPENDIX C-2













5 Werk individueel









APPENDIX C-3










MLQ SCORING KEY

MLQ RATING SCALE



(IIA) 10 (MBEA) 4 18 22 21 24 25 27






(CR) 1 41 11 16 35



APPENDIX C-4




INSTRUCTIONS






1 2 3 4 5


1 2 3 4 5




Mea

n

Plea

se ra

te

the

follo

win

g ite

mshellip

Stro

ngly

D

isag

ree

Dis

agre

e

Neu

tral

Agr

ee

Stro

ngly

A

gree




done 1 2 3 4 5


done 1 2 3 4 5




1 2 3 4 5


1 2 3 4 5


1 2 3 4 5


1 2 3 4 5


expected 1 2 3 4 5






work done 1 2 3 4 5


1 2 3 4 5







APPENDIX C-5




1 2 3 4 5












APPENDIX D-1









































APPENDIX D-2









total commitment












total closure





APPENDIX D-3

















APPENDIX D-4








APPENDIX D-5








APPENDIX D-6




APPENDIX D-7






niet mee eens


1 2 3 4 5







0 1 2 3 4






TRUST vraag 1

MLQ_IM gemiddelde

325 3250 3400 2225 4200 4150 3400 5400 2350 4350 5250 2350 4300 3375 4125 5400 2300 2350 1400 3400 2400 2300 4350 5250 2350 2200 1050 4



neutraal0

neutraal

0




niet mee eens


1 2 3 4 5




0 1 2 3 4

r e c o d e d



re-coded

negatief

re-coded

negatief positief

-1 1

positief-1 1


-025 1-025 1075 1100 0100 1050 1100 1




TRUST vraag 1

MLQ_IM gemiddelde

075 0050 0100 -1050 1000 1

-025 0100 1100 -1100 1100 1050 -1100 1100 0100 1

-050 1100 -1100 -1100 -1100 0100 -1100 -1050 1100 1050 -1100 -1025 -1

-075 1






niet mee eens


1 2 3 4 5







0 1 2 3 4







MLQ_IM gemiddelde

325250400225200150400400350350250350300375125400300350400400400300350250350200050



DEDICATIONS

ACKNOWLEDGEMENTS

TABLE OF CONTENTS

LIST OF TABLES

LIST OF FIGURES


LIST OF APPENDIXES

ABSTRACT


11 Introduction


Research Questions







21 Introduction


221 Leadership


24 CKC BEM



2412 Infrastructure


Communication Flow

Incentive Program


Summary

3 LITERATURE REVIEW

31 Introduction


















38 Summary


41 Introduction

Hypothesis


44 Summary


51 Introduction




523 Influence

53 Research Design

54 Data Collection

55 Data Analysis




External Validity

Reliability

57 Summary

6 RESULTS

61 Introduction

Study Findings

Research Question 1

Results of the MLQ

Research Question 2

Leadership Style

Research Question 3

Results of Trust

Research Question 4



Summary


71 Introduction



74 Recommendations


76 Implementation

761 Making Changes



Incentive Program






APPENDIX A MAPS





DEDICATIONS








ACKNOWLEDGEMENTS











































6 RESULTS 52
























ABSTRACT



























Social Sciences

































CHAPTER 1


11 Introduction


































































described




within CKC BEM




setting












consultant















needs




















indirectly affected



























Source Author


CHAPTER 2


21 Introduction



























































enlarged market

221 Leadership

















































24 CKC BEM





















2001 211098300 101255800 149760200 (48504400)

2000 200587500 122478700 136615800 (14137100)

1999 169809500 71897500 99582700 (27685200)

1998 113576600 48411900 46451300 1960600



















































2412 Infrastructure












0

20

40

60

80

100

120


Staff 10 12 8 8 9 7 7CAO 107 97 91 81 77 66 60

1998 1999 2000 2001 2002 2003 2004






199916

200021

20019

200219

200320

200415

199920002001200220032004

Sick Leave 1999 2000 2001 2002 2003 2004





















gain market share




















machines






1998

1999

2000

2001

2002

2003

2004

-200000400000600000800000

1000000120000014000001600000

Tube Production

tubes 343700 192400 247200 677700 1104100 1458000 873813

1998 1999 2000 2001 2002 2003 2004





1998

1999

2000

2001

2002

2003

2004

0

500000

1000000

1500000

2000000

Stones Production

Stones 1315037 1253702 1010861 11112900 15372800 19407600 12224490

1998 1999 2000 2001 2002 2003 2004
































secondary benefits

















25 Summary











CHAPTER 3

3 LITERATURE REVIEW

31 Introduction
































































































Source Author




















Yammarino 2002 p 7)





























Irsquos

Irsquos

CR

MBE-A

MBE-P

LF

CR

MBE-A

MBE-P

LF


















































































































Transformational



















Beyond Expectations











































when needed
















































commitment)


















organization











































work

38 Summary



















CHAPTER FOUR


41 Introduction






















Satisfaction










42 Hypothesis























described




within CKC BEM









44 Summary









CHAPTER FIVE


51 Introduction






























MLQ




















523 Influence





comprise














53 Research Design





















54 Data Collection









































14

1227 5 2

58

general staff male




30 - 204 40 - 31

12

60 - 5145

50 - 4139


72

1412 2

general staff




5 - 110

15 - 629

25 - 163

35 - 2655

40 - 363







55 Data Analysis





















bull reliability


















564 Reliability




required











57 Summary







MLQ 74 - 94 91


81


73 - 78 69 - 94






CHAPTER SIX

6 RESULTS

61 Introduction














organization


62 Study Findings



















D-1










































management team
















organization







(See table 9)









































































64 Summary
















CHAPTER SEVEN


71 Introduction

























setting






























innovation






















74 Recommendations



































Strategy Vision

Direction











resources























76 Implementation

761 Making Changes















set










































capital



















to be set clearly





leadership style















































































































































































































APPENDIX A MAPS


APPENDIX A-1

MAP OF SURINAME




APPENDIX A-2






Production

RinoOVBFMC 3

Source CKC BEM


Marketing Business

Unit

Roofling material


Human Resources

Stones


Delivery Sales

Purchase Dept Debt


Finished Products


CEO




Secretariat

Tubes Granito

Supervisory Board

Quality Control



APPENDIX C-1

INTERVIEW QUESTION



APPENDIX C-2













5 Werk individueel









APPENDIX C-3










MLQ SCORING KEY

MLQ RATING SCALE



(IIA) 10 (MBEA) 4 18 22 21 24 25 27






(CR) 1 41 11 16 35



APPENDIX C-4




INSTRUCTIONS






1 2 3 4 5


1 2 3 4 5




Mea

n

Plea

se ra

te

the

follo

win

g ite

mshellip

Stro

ngly

D

isag

ree

Dis

agre

e

Neu

tral

Agr

ee

Stro

ngly

A

gree




done 1 2 3 4 5


done 1 2 3 4 5




1 2 3 4 5


1 2 3 4 5


1 2 3 4 5


1 2 3 4 5


expected 1 2 3 4 5






work done 1 2 3 4 5


1 2 3 4 5







APPENDIX C-5




1 2 3 4 5












APPENDIX D-1









































APPENDIX D-2









total commitment












total closure





APPENDIX D-3

















APPENDIX D-4








APPENDIX D-5








APPENDIX D-6




APPENDIX D-7






niet mee eens


1 2 3 4 5







0 1 2 3 4






TRUST vraag 1

MLQ_IM gemiddelde

325 3250 3400 2225 4200 4150 3400 5400 2350 4350 5250 2350 4300 3375 4125 5400 2300 2350 1400 3400 2400 2300 4350 5250 2350 2200 1050 4



neutraal0

neutraal

0




niet mee eens


1 2 3 4 5




0 1 2 3 4

r e c o d e d



re-coded

negatief

re-coded

negatief positief

-1 1

positief-1 1


-025 1-025 1075 1100 0100 1050 1100 1




TRUST vraag 1

MLQ_IM gemiddelde

075 0050 0100 -1050 1000 1

-025 0100 1100 -1100 1100 1050 -1100 1100 0100 1

-050 1100 -1100 -1100 -1100 0100 -1100 -1050 1100 1050 -1100 -1025 -1

-075 1






niet mee eens


1 2 3 4 5







0 1 2 3 4







MLQ_IM gemiddelde

325250400225200150400400350350250350300375125400300350400400400300350250350200050



DEDICATIONS

ACKNOWLEDGEMENTS

TABLE OF CONTENTS

LIST OF TABLES

LIST OF FIGURES


LIST OF APPENDIXES

ABSTRACT


11 Introduction


Research Questions







21 Introduction


221 Leadership


24 CKC BEM



2412 Infrastructure


Communication Flow

Incentive Program


Summary

3 LITERATURE REVIEW

31 Introduction


















38 Summary


41 Introduction

Hypothesis


44 Summary


51 Introduction




523 Influence

53 Research Design

54 Data Collection

55 Data Analysis




External Validity

Reliability

57 Summary

6 RESULTS

61 Introduction

Study Findings

Research Question 1

Results of the MLQ

Research Question 2

Leadership Style

Research Question 3

Results of Trust

Research Question 4



Summary


71 Introduction



74 Recommendations


76 Implementation

761 Making Changes



Incentive Program






APPENDIX A MAPS




ACKNOWLEDGEMENTS











































6 RESULTS 52
























ABSTRACT



























Social Sciences

































CHAPTER 1


11 Introduction


































































described




within CKC BEM




setting












consultant















needs




















indirectly affected



























Source Author


CHAPTER 2


21 Introduction



























































enlarged market

221 Leadership

















































24 CKC BEM





















2001 211098300 101255800 149760200 (48504400)

2000 200587500 122478700 136615800 (14137100)

1999 169809500 71897500 99582700 (27685200)

1998 113576600 48411900 46451300 1960600



















































2412 Infrastructure












0

20

40

60

80

100

120


Staff 10 12 8 8 9 7 7CAO 107 97 91 81 77 66 60

1998 1999 2000 2001 2002 2003 2004






199916

200021

20019

200219

200320

200415

199920002001200220032004

Sick Leave 1999 2000 2001 2002 2003 2004





















gain market share




















machines






1998

1999

2000

2001

2002

2003

2004

-200000400000600000800000

1000000120000014000001600000

Tube Production

tubes 343700 192400 247200 677700 1104100 1458000 873813

1998 1999 2000 2001 2002 2003 2004





1998

1999

2000

2001

2002

2003

2004

0

500000

1000000

1500000

2000000

Stones Production

Stones 1315037 1253702 1010861 11112900 15372800 19407600 12224490

1998 1999 2000 2001 2002 2003 2004
































secondary benefits

















25 Summary











CHAPTER 3

3 LITERATURE REVIEW

31 Introduction
































































































Source Author




















Yammarino 2002 p 7)





























Irsquos

Irsquos

CR

MBE-A

MBE-P

LF

CR

MBE-A

MBE-P

LF


















































































































Transformational



















Beyond Expectations











































when needed
















































commitment)


















organization











































work

38 Summary



















CHAPTER FOUR


41 Introduction






















Satisfaction










42 Hypothesis























described




within CKC BEM









44 Summary









CHAPTER FIVE


51 Introduction






























MLQ




















523 Influence





comprise














53 Research Design





















54 Data Collection









































14

1227 5 2

58

general staff male




30 - 204 40 - 31

12

60 - 5145

50 - 4139


72

1412 2

general staff




5 - 110

15 - 629

25 - 163

35 - 2655

40 - 363







55 Data Analysis





















bull reliability


















564 Reliability




required











57 Summary







MLQ 74 - 94 91


81


73 - 78 69 - 94






CHAPTER SIX

6 RESULTS

61 Introduction














organization


62 Study Findings



















D-1










































management team
















organization







(See table 9)









































































64 Summary
















CHAPTER SEVEN


71 Introduction

























setting






























innovation






















74 Recommendations



































Strategy Vision

Direction











resources























76 Implementation

761 Making Changes















set










































capital



















to be set clearly





leadership style















































































































































































































APPENDIX A MAPS


APPENDIX A-1

MAP OF SURINAME




APPENDIX A-2






Production

RinoOVBFMC 3

Source CKC BEM


Marketing Business

Unit

Roofling material


Human Resources

Stones


Delivery Sales

Purchase Dept Debt


Finished Products


CEO




Secretariat

Tubes Granito

Supervisory Board

Quality Control



APPENDIX C-1

INTERVIEW QUESTION



APPENDIX C-2













5 Werk individueel









APPENDIX C-3










MLQ SCORING KEY

MLQ RATING SCALE



(IIA) 10 (MBEA) 4 18 22 21 24 25 27






(CR) 1 41 11 16 35



APPENDIX C-4




INSTRUCTIONS






1 2 3 4 5


1 2 3 4 5




Mea

n

Plea

se ra

te

the

follo

win

g ite

mshellip

Stro

ngly

D

isag

ree

Dis

agre

e

Neu

tral

Agr

ee

Stro

ngly

A

gree




done 1 2 3 4 5


done 1 2 3 4 5




1 2 3 4 5


1 2 3 4 5


1 2 3 4 5


1 2 3 4 5


expected 1 2 3 4 5






work done 1 2 3 4 5


1 2 3 4 5







APPENDIX C-5




1 2 3 4 5












APPENDIX D-1









































APPENDIX D-2









total commitment












total closure





APPENDIX D-3

















APPENDIX D-4








APPENDIX D-5








APPENDIX D-6




APPENDIX D-7






niet mee eens


1 2 3 4 5







0 1 2 3 4






TRUST vraag 1

MLQ_IM gemiddelde

325 3250 3400 2225 4200 4150 3400 5400 2350 4350 5250 2350 4300 3375 4125 5400 2300 2350 1400 3400 2400 2300 4350 5250 2350 2200 1050 4



neutraal0

neutraal

0




niet mee eens


1 2 3 4 5




0 1 2 3 4

r e c o d e d



re-coded

negatief

re-coded

negatief positief

-1 1

positief-1 1


-025 1-025 1075 1100 0100 1050 1100 1




TRUST vraag 1

MLQ_IM gemiddelde

075 0050 0100 -1050 1000 1

-025 0100 1100 -1100 1100 1050 -1100 1100 0100 1

-050 1100 -1100 -1100 -1100 0100 -1100 -1050 1100 1050 -1100 -1025 -1

-075 1






niet mee eens


1 2 3 4 5







0 1 2 3 4







MLQ_IM gemiddelde

325250400225200150400400350350250350300375125400300350400400400300350250350200050



DEDICATIONS

ACKNOWLEDGEMENTS

TABLE OF CONTENTS

LIST OF TABLES

LIST OF FIGURES


LIST OF APPENDIXES

ABSTRACT


11 Introduction


Research Questions







21 Introduction


221 Leadership


24 CKC BEM



2412 Infrastructure


Communication Flow

Incentive Program


Summary

3 LITERATURE REVIEW

31 Introduction


















38 Summary


41 Introduction

Hypothesis


44 Summary


51 Introduction




523 Influence

53 Research Design

54 Data Collection

55 Data Analysis




External Validity

Reliability

57 Summary

6 RESULTS

61 Introduction

Study Findings

Research Question 1

Results of the MLQ

Research Question 2

Leadership Style

Research Question 3

Results of Trust

Research Question 4



Summary


71 Introduction



74 Recommendations


76 Implementation

761 Making Changes



Incentive Program






APPENDIX A MAPS

















6 RESULTS 52
























ABSTRACT



























Social Sciences

































CHAPTER 1


11 Introduction


































































described




within CKC BEM




setting












consultant















needs




















indirectly affected



























Source Author


CHAPTER 2


21 Introduction



























































enlarged market

221 Leadership

















































24 CKC BEM





















2001 211098300 101255800 149760200 (48504400)

2000 200587500 122478700 136615800 (14137100)

1999 169809500 71897500 99582700 (27685200)

1998 113576600 48411900 46451300 1960600



















































2412 Infrastructure












0

20

40

60

80

100

120


Staff 10 12 8 8 9 7 7CAO 107 97 91 81 77 66 60

1998 1999 2000 2001 2002 2003 2004






199916

200021

20019

200219

200320

200415

199920002001200220032004

Sick Leave 1999 2000 2001 2002 2003 2004





















gain market share




















machines






1998

1999

2000

2001

2002

2003

2004

-200000400000600000800000

1000000120000014000001600000

Tube Production

tubes 343700 192400 247200 677700 1104100 1458000 873813

1998 1999 2000 2001 2002 2003 2004





1998

1999

2000

2001

2002

2003

2004

0

500000

1000000

1500000

2000000

Stones Production

Stones 1315037 1253702 1010861 11112900 15372800 19407600 12224490

1998 1999 2000 2001 2002 2003 2004
































secondary benefits

















25 Summary











CHAPTER 3

3 LITERATURE REVIEW

31 Introduction
































































































Source Author




















Yammarino 2002 p 7)





























Irsquos

Irsquos

CR

MBE-A

MBE-P

LF

CR

MBE-A

MBE-P

LF


















































































































Transformational



















Beyond Expectations











































when needed
















































commitment)


















organization











































work

38 Summary



















CHAPTER FOUR


41 Introduction






















Satisfaction










42 Hypothesis























described




within CKC BEM









44 Summary









CHAPTER FIVE


51 Introduction






























MLQ




















523 Influence





comprise














53 Research Design





















54 Data Collection









































14

1227 5 2

58

general staff male




30 - 204 40 - 31

12

60 - 5145

50 - 4139


72

1412 2

general staff




5 - 110

15 - 629

25 - 163

35 - 2655

40 - 363







55 Data Analysis





















bull reliability


















564 Reliability




required











57 Summary







MLQ 74 - 94 91


81


73 - 78 69 - 94






CHAPTER SIX

6 RESULTS

61 Introduction














organization


62 Study Findings



















D-1










































management team
















organization







(See table 9)









































































64 Summary
















CHAPTER SEVEN


71 Introduction

























setting






























innovation






















74 Recommendations



































Strategy Vision

Direction











resources























76 Implementation

761 Making Changes















set










































capital



















to be set clearly





leadership style















































































































































































































APPENDIX A MAPS


APPENDIX A-1

MAP OF SURINAME




APPENDIX A-2






Production

RinoOVBFMC 3

Source CKC BEM


Marketing Business

Unit

Roofling material


Human Resources

Stones


Delivery Sales

Purchase Dept Debt


Finished Products


CEO




Secretariat

Tubes Granito

Supervisory Board

Quality Control



APPENDIX C-1

INTERVIEW QUESTION



APPENDIX C-2













5 Werk individueel









APPENDIX C-3










MLQ SCORING KEY

MLQ RATING SCALE



(IIA) 10 (MBEA) 4 18 22 21 24 25 27






(CR) 1 41 11 16 35



APPENDIX C-4




INSTRUCTIONS






1 2 3 4 5


1 2 3 4 5




Mea

n

Plea

se ra

te

the

follo

win

g ite

mshellip

Stro

ngly

D

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Dis

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Neu

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ee

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ngly

A

gree




done 1 2 3 4 5


done 1 2 3 4 5




1 2 3 4 5


1 2 3 4 5


1 2 3 4 5


1 2 3 4 5


expected 1 2 3 4 5






work done 1 2 3 4 5


1 2 3 4 5







APPENDIX C-5




1 2 3 4 5












APPENDIX D-1









































APPENDIX D-2









total commitment












total closure





APPENDIX D-3

















APPENDIX D-4








APPENDIX D-5








APPENDIX D-6




APPENDIX D-7






niet mee eens


1 2 3 4 5







0 1 2 3 4






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neutraal

0




niet mee eens


1 2 3 4 5




0 1 2 3 4

r e c o d e d



re-coded

negatief

re-coded

negatief positief

-1 1

positief-1 1


-025 1-025 1075 1100 0100 1050 1100 1




TRUST vraag 1

MLQ_IM gemiddelde

075 0050 0100 -1050 1000 1

-025 0100 1100 -1100 1100 1050 -1100 1100 0100 1

-050 1100 -1100 -1100 -1100 0100 -1100 -1050 1100 1050 -1100 -1025 -1

-075 1






niet mee eens


1 2 3 4 5







0 1 2 3 4







MLQ_IM gemiddelde

325250400225200150400400350350250350300375125400300350400400400300350250350200050



DEDICATIONS

ACKNOWLEDGEMENTS

TABLE OF CONTENTS

LIST OF TABLES

LIST OF FIGURES


LIST OF APPENDIXES

ABSTRACT


11 Introduction


Research Questions







21 Introduction


221 Leadership


24 CKC BEM



2412 Infrastructure


Communication Flow

Incentive Program


Summary

3 LITERATURE REVIEW

31 Introduction


















38 Summary


41 Introduction

Hypothesis


44 Summary


51 Introduction




523 Influence

53 Research Design

54 Data Collection

55 Data Analysis




External Validity

Reliability

57 Summary

6 RESULTS

61 Introduction

Study Findings

Research Question 1

Results of the MLQ

Research Question 2

Leadership Style

Research Question 3

Results of Trust

Research Question 4



Summary


71 Introduction



74 Recommendations


76 Implementation

761 Making Changes



Incentive Program






APPENDIX A MAPS






















ABSTRACT



























Social Sciences

































CHAPTER 1


11 Introduction


































































described




within CKC BEM




setting












consultant















needs




















indirectly affected



























Source Author


CHAPTER 2


21 Introduction



























































enlarged market

221 Leadership

















































24 CKC BEM





















2001 211098300 101255800 149760200 (48504400)

2000 200587500 122478700 136615800 (14137100)

1999 169809500 71897500 99582700 (27685200)

1998 113576600 48411900 46451300 1960600



















































2412 Infrastructure












0

20

40

60

80

100

120


Staff 10 12 8 8 9 7 7CAO 107 97 91 81 77 66 60

1998 1999 2000 2001 2002 2003 2004






199916

200021

20019

200219

200320

200415

199920002001200220032004

Sick Leave 1999 2000 2001 2002 2003 2004





















gain market share




















machines






1998

1999

2000

2001

2002

2003

2004

-200000400000600000800000

1000000120000014000001600000

Tube Production

tubes 343700 192400 247200 677700 1104100 1458000 873813

1998 1999 2000 2001 2002 2003 2004





1998

1999

2000

2001

2002

2003

2004

0

500000

1000000

1500000

2000000

Stones Production

Stones 1315037 1253702 1010861 11112900 15372800 19407600 12224490

1998 1999 2000 2001 2002 2003 2004
































secondary benefits

















25 Summary











CHAPTER 3

3 LITERATURE REVIEW

31 Introduction
































































































Source Author




















Yammarino 2002 p 7)





























Irsquos

Irsquos

CR

MBE-A

MBE-P

LF

CR

MBE-A

MBE-P

LF


















































































































Transformational



















Beyond Expectations











































when needed
















































commitment)


















organization











































work

38 Summary



















CHAPTER FOUR


41 Introduction






















Satisfaction










42 Hypothesis























described




within CKC BEM









44 Summary









CHAPTER FIVE


51 Introduction






























MLQ




















523 Influence





comprise














53 Research Design





















54 Data Collection









































14

1227 5 2

58

general staff male




30 - 204 40 - 31

12

60 - 5145

50 - 4139


72

1412 2

general staff




5 - 110

15 - 629

25 - 163

35 - 2655

40 - 363







55 Data Analysis





















bull reliability


















564 Reliability




required











57 Summary







MLQ 74 - 94 91


81


73 - 78 69 - 94






CHAPTER SIX

6 RESULTS

61 Introduction














organization


62 Study Findings



















D-1










































management team
















organization







(See table 9)









































































64 Summary
















CHAPTER SEVEN


71 Introduction

























setting






























innovation






















74 Recommendations



































Strategy Vision

Direction











resources























76 Implementation

761 Making Changes















set










































capital



















to be set clearly





leadership style















































































































































































































APPENDIX A MAPS


APPENDIX A-1

MAP OF SURINAME




APPENDIX A-2






Production

RinoOVBFMC 3

Source CKC BEM


Marketing Business

Unit

Roofling material


Human Resources

Stones


Delivery Sales

Purchase Dept Debt


Finished Products


CEO




Secretariat

Tubes Granito

Supervisory Board

Quality Control



APPENDIX C-1

INTERVIEW QUESTION



APPENDIX C-2













5 Werk individueel









APPENDIX C-3










MLQ SCORING KEY

MLQ RATING SCALE



(IIA) 10 (MBEA) 4 18 22 21 24 25 27






(CR) 1 41 11 16 35



APPENDIX C-4




INSTRUCTIONS






1 2 3 4 5


1 2 3 4 5




Mea

n

Plea

se ra

te

the

follo

win

g ite

mshellip

Stro

ngly

D

isag

ree

Dis

agre

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Neu

tral

Agr

ee

Stro

ngly

A

gree




done 1 2 3 4 5


done 1 2 3 4 5




1 2 3 4 5


1 2 3 4 5


1 2 3 4 5


1 2 3 4 5


expected 1 2 3 4 5






work done 1 2 3 4 5


1 2 3 4 5







APPENDIX C-5




1 2 3 4 5












APPENDIX D-1









































APPENDIX D-2









total commitment












total closure





APPENDIX D-3

















APPENDIX D-4








APPENDIX D-5








APPENDIX D-6




APPENDIX D-7






niet mee eens


1 2 3 4 5







0 1 2 3 4






TRUST vraag 1

MLQ_IM gemiddelde

325 3250 3400 2225 4200 4150 3400 5400 2350 4350 5250 2350 4300 3375 4125 5400 2300 2350 1400 3400 2400 2300 4350 5250 2350 2200 1050 4



neutraal0

neutraal

0




niet mee eens


1 2 3 4 5




0 1 2 3 4

r e c o d e d



re-coded

negatief

re-coded

negatief positief

-1 1

positief-1 1


-025 1-025 1075 1100 0100 1050 1100 1




TRUST vraag 1

MLQ_IM gemiddelde

075 0050 0100 -1050 1000 1

-025 0100 1100 -1100 1100 1050 -1100 1100 0100 1

-050 1100 -1100 -1100 -1100 0100 -1100 -1050 1100 1050 -1100 -1025 -1

-075 1






niet mee eens


1 2 3 4 5







0 1 2 3 4







MLQ_IM gemiddelde

325250400225200150400400350350250350300375125400300350400400400300350250350200050



DEDICATIONS

ACKNOWLEDGEMENTS

TABLE OF CONTENTS

LIST OF TABLES

LIST OF FIGURES


LIST OF APPENDIXES

ABSTRACT


11 Introduction


Research Questions







21 Introduction


221 Leadership


24 CKC BEM



2412 Infrastructure


Communication Flow

Incentive Program


Summary

3 LITERATURE REVIEW

31 Introduction


















38 Summary


41 Introduction

Hypothesis


44 Summary


51 Introduction




523 Influence

53 Research Design

54 Data Collection

55 Data Analysis




External Validity

Reliability

57 Summary

6 RESULTS

61 Introduction

Study Findings

Research Question 1

Results of the MLQ

Research Question 2

Leadership Style

Research Question 3

Results of Trust

Research Question 4



Summary


71 Introduction



74 Recommendations


76 Implementation

761 Making Changes



Incentive Program






APPENDIX A MAPS




transformational leadership influences on employee trust and

Documents