Review of Previous Leadership Studies

The literature on leadership is vast and it has several definitions. Leadership can be defined as a process where a leader influences subordinates behavior in order to achieve organizational goals. According to (Wren, 1995) Leadership is complex phenomena. Leaders are those who influence the group of individual to achieve goals through common efforts (Northouse, 2007).

Systematic and formal research on leadership started with “great man theory in early 1930s. Great Man Theory states leaders are born and not made, it means, a leader is a person with unique qualities that differentiate him, from his followers (Dorfman, 1996). After this, different researchers started to search out characteristics of leadership (House & Aditya, 1997). They were interested and focused to identify different leadership traits and attributes that differentiate non leaders from leaders.

Trait theory states that people inherit some traits and qualities that best suited to leadership. According to (Ghee and Daft, 2004) Trait theories identify the behavioral characteristics of the leaders. Stogdill (cited in Ghee and Daft, 2004) and Stogdill (cited in Daft, 2002) finding suggest the importance of a particular trait was relative to the situation, it means one trait make a leader successful in one situation but unsuccessful in another situation.

Kirkpatrick and Locke (cited in Daft, 2002) and Invancevich, Konopaske and Matteson, 2008) suggested that motivation, ambition, honesty and self-confidence are key traits of a good leadership. They also state that selection of right traits is very important for successful leadership.

Due to low magnitude of relationship between leader’s attributes and leadership effectiveness, researchers diverted their attentions towards leader’s behaviors. Behavioral Theory states only traits not enough effective and successful leadership. According to behavioral theory, a good leader would not depend only on traits but he should learn through observation and teaching (Ghee and Daft, 2004s).

Researchers from the Ohio State University state two types of behaviors, initiating structure behavior and consideration behavior (Jex, 2002; Daft, 2002). Dr. Rensis Likert from the Michigan University also identified, two forms of leadership behaviors i-e production oriented behavior and employee oriented behavior. As far as production oriented leadership behavior concerned, leaders in this type of leadership behavior emphasize technical and production features of the jobs. While in employees oriented leadership behavior, leaders focused to employee’s needs and their personal interests.

When researcher see trait and behavioral theories are not very much effective to satisfy leadership in organizations, they try to focus on contingency theory (Champoux, 2000). In all these theories ways of thinking of a leader are different and they make use of these according to a situation (Moorhead and Griffin, 1995).

As leaders behaviors effectiveness varies in different situations so researchers argued that leaders should mould their behaviors according to situational demands (House, 1971; Fielder, 1971; Hersey ; Blanchard, 1982) therefore different contingency theories proposed to deal with different situations. The major theories were contingency theory (Fielder, 1971), path goal theory by (House, 1971) and life cycle (Hersey ; Blanchard, 1971). Northouse (2010) and Yukl (2005) define leadership is a process where leaders influence their followers to achieve Organisational goals.

Chen and Chen (2008) states that different organizations adapt different leadership styles. Burns (1978) also states transactional and transformational leadership styles are prominent among other leadership styles. Transformational leaders are those leaders who emphasize on the personal development of the followers and also inspire performance of their followers (Spears ;Lawrence, 2003; House, Hanges, Javidan, Dorfman, ; Gupta, 2004; Hirtz, Murray, ; Riordam, 2007).

Transactional Leadership Theory

Selection of the appropriate leadership style is very important to make an organization successful. Transactional leadership style is that style in which leader satisfy their followers by using rewards and praises. In the transactional leadership approach leaders unlike transformational leadership are not try to change the future, but they try to keep the things same as before. In crisis and emergency situations, this type of leadership style is very effective.

Such types of leaders focus on contingent reward or penalization. Transactional leaders give Contingent rewards to their followers when they complete their goals timely and Contingent punishments are given when they do not fulfill their tasks. According to Bass (2000) good leaders accommodate their subordinates by giving them incentives and honor.

Transformational Leadership Theory

Bronze (1978) was the first person who introduced the term “transformational leadership” in political science subject. Later on Boss (1985) used this term in his research and it became the part of organization leadership domain. Two main dimensions of Leadership are transactional leadership and transformational leadership (Adnan ; Mubarak, 2010).

In Transformational Leadership a leader try to create valuable and positive change in the followers. Lievens, Geit ; Coetsier (1997) and Berson, Shamir, Avolio ; Popper (2001) states in transformational leadership a leader focus on intrinsic motivation and personal development of their followers which helpful for the organization. Basic four components to measure the dimensions of the transformational leadership are charisma, inspiration, individual consideration, and intellectual stimulation.

When organization make use of transformational leadership, it give chance to their employees to share their knowledge (Behery, 2008). Transformational Leadership not only share knowledge but also focuses on vision, culture, values, teamwork, and service (Fairholm, 2001). According to (Fatima ; Ahmad ; Usman, 2011) organizations choose transformational Leadership because it is innovative, productive and supportive in nature.

Transformational Leadership and Project performance

Before we discuss the influence of transformational leadership on project performance, it is very much important for us to define Transformational leadership. Research shows any organization which want to achieve remarkable performance from their followers make use of transformational leadership style. According to Burn (as cited in Evans, 2005) only transformational leadership is a leadership which motivates their followers by appealing moral values.

Transformational leadership style is an important factor which effect directly or indirectly the performance of an organization (Gumusluoglu and Ilsev, 2009; Jung et al., 2003, 2008; Kissi et al., 2012a). Transformational leadership is the only leadership style through which organizational goal can be achieved by motivating the followers (Jung et al., 2003, 2008). According to Pinto et al. (1998) the leadership style which enables the managers to convert their project and ultimately effect the project performance is only the transformational leadership style.
Previous research shows the leaders have transformational leadership encourage and motivate their subordinate to excel their work and self interest in favor of organizations by adopting different forms of behaviors. After this,

transformational leadership received great attention and widely used in leadership literature (Avolio et al., 2009). Different meta-analysis results indicated that transformational leadership positively and significantly related with leaders and followers motivation, attitudes and performance (Wang et al, 2011; judge ; piccolo, 2004). Different researchers (Conger ;Kanaugo, 1987) revised and expanded charismatic theory which explained that leaders hold some unique personality traits that they behave in such a way that followers perceived them as charismatic leaders and these leaders also have charismatic influence on their subordinates. Charismatic and transformational leadership overlap in conceptual context (Conger ;Kanaugo, 1994) but another study argued that charisma is essential element of transformational leadership (Bass, 1985).

Studies of various researchers shows that transformational leadership has a great effect on project success (Anantatmula, 2010; Yang, Huang ; Wu, 2011). Research shows that project manager’s appropriate leadership behavior play a vital role in achieving project success (Zwikael & Unger-Aviram, 2010). Transformational leaders motivate and encourage the followers to perform beyond their abilities to achieve the goal.

Project managers with transformational leadership increase team unity, common understanding, new ideas and discussions. Transformational leaders especially emphasis on self- leadership and management abilities of the followers which can generate conducive atmosphere for the successful accomplishment of the project (Aga, Noorderhaven & Vallejo, 2016).

Transformational Leadership style and job satisfaction

Among the all leadership styles, it has been observed only transformational style has positive relationship with job satisfaction in an organization as compared to other leaderships styles(Voon, et.al., 2011)(Emery & Barker, 2007).

As we know there are many other factors that affect job satisfaction: like salaries, fringe benefits, appreciation and recognition but the most important factor is transformational leadership style that determines job satisfaction which plays a great role for organizing the people within the organization (Sulieman; Ibraheem, et.al.2011). Job satisfaction is an important aspect for modern organization and much research has been done to increase job satisfaction. It is observed strong relationship exist between transformational leadership style and job satisfaction Voon, Ngui and Ayob (2011).

Krishnan (2005) state transformational leadership is a key factor and perform important role the achievement of job satisfaction. Research conducted by several researcher shows that there is a positive correlation between leadership and the job satisfaction which ultimately results in project success (Seo, KO, & Price, 2004; Berson & Linton, 2005).

Psychological Empowerment

According to conger and Kanungo (1988) Empowerment from a psychological perspective can be view as motivational empowerment. The motivational Empowerment is more psychological in nature. By Spreitzer (1995) psychological empowerment have four components which assist employees in their work environment. Previous research conducted by Thomas & Velthouse (1990) and Conger and Kanungo (1988) view the psychological empowerment as the motivational concept of self-efficacy and intrinsic task motivation. Previous research shows that followers who are encouraged and empowered by their leaders are very much committed to the organization (Eisenberger, Fasolo, & Davis-LaMastro, 1990; Kraimer, Seibert, & Liden, 1999).

Transformational Leadership style and Psychological Empowerment

Research conducted by (Avolio, 1999; Bass, 1999 😉 shows that empowerment is very much important to achieve the organization’s objective. According to Lowe et al. (1996) transformational leaders convert aspirations, preferences, and values of their followers to increase their potential. Followers of transformational leaders have great feelings and have positive impact on their organization, through enhancements of psychological empowerment (Laschinger, Finegan, ;Shamian, 2001).

Zahar and TeneGazit (2008), stated that the relationship between empowerment and transformational style as a social learning process. The group members of the organization frequently interact and consult the leaders regarding group and organization level issues. The leader can set a warm and intimate relation with the employees and make it sustainable through reciprocal trust, honesty and communication between the leaders and members.

Transformational leadership promotes the employees? responsibilities, increase their potential to think about themselves and encourage them to have innovative ideas. With transformational leadership, the employees will embrace perceptions which respect their capabilities and autonomies and support them (Zohar, Tenegazit, 2008).

Research conducted by Conger and Kanungo’s (1988) view the psychological empowerment as a motivational construct. There are four dimensions of psychological empowerment which consist of meaning, competence, self-determination, and impact. Spreitzer (1995) also define these dimensions as Meaning is link between an employee and his goals set by an organization. Competence is abilities of an employee to do the assigned task by using his skills. Self-determination is the confidence of an employee on the way to do the assigned task. Impact refers to the concept that how an individual affect decision making activities of the organization.

Psychological Empowerment and Job Satisfaction

Empowerment have significant effect on employee in organizations. Research shows when individuals are empowered, they become confident and caring about their work. Empowerment will increase their job satisfaction and they will be more productive to their work (Koberg, Boss, Senjem, & Goodman, 1999; Spreitzer, 1995b). Bordin, Bartram, and Casimir (2007) found that job satisfaction have positive correlation with psychological empowerment.

According to Carless (2004) meaning and competence among the four dimensions of empowerment are significant for predicting job satisfaction. Previous research shows that which organization use psychological empowerment have more satisfied employees Bowen and Lawler (1995). Research by Avey et al. (2008) shows psychological empowerment is an important predictor of job satisfaction.

Bordin et al. (2007) states all dimensions of psychological empowerment have equal importance for contributing to job satisfaction but Liden, Wayne, and Sparrowe (2000) found that the meaning dimension has significant positive relation with job satisfaction. It shows, meaning is essential ingredient for job satisfaction. Research by Liden et al. (2000) states that impact dimension of psychological empowerment give confidence to employees which create a sense of job satisfaction.

Psychological Empowerment and Project Performance

Yang and choi (2008) found that four dimension of empowerment includes Meaning, competence, Self-determination and impact have positive relation with team performance. For project success different success factors like cost, time, performance, the project leader is also crucial success factor for project, the project leader have also different tools to improve the team performance, the empowerment is best tool to increase performance i.e.(Project Performance).

Laschinger, Finegan, and Shamian (2001b) found that Psychological empowerment is an important tool of leader to use for the encouragement of workers and also enhance their competency level. Project is task for team and team member perform task efficiently when they have some motivation factors, one of the important factor is psychological empowerment. According to Sigler and Pearson (2000) when leader empower the team member they increase productivity. Psychological empowerment and team productivity have a positive relationship. Similarly Yao et al., (2013) also found a positive relation between psychological empowerment and project performance.

Parolia et al., (2007) also argued that project performance increase due to Psychological Empowerment. Ma and Weng (2015) urge that empowerment from manager improve individual job performance through intrinsic motivation. The psychological empowerment significantly positive impact on task performance and job loyalty (Yao, 2013). Every project need productivity and psychological empowerment can improve productivity of the organization or project (Hammuda & Dulaimi, 1997).

Psychological empowerment has strong impact on creativity and performance (Sun, Zhang, Qi & Chen, 2011). Similarly Parolia, Goodman, Li & Jiang (2007) argued that psychological empowerment significantly improves the project performance. Niehoff, Moorman, Blakely Fuller (2001) conduct study in the work place and suggest that when you empower the employees then they show a high level of performance, they feel confident and make the decision to finish task efficiently, the empowerment enhances employees competency and job performance.

The human development plays a key role in organizational success (e.g. Project success) (whenever an organization enters into competition, cultural then they have need a lot of efforts, one effort is Human development. There are many techniques and tools for human development one is psychological empowerment. Many researchers tested psychological empowerment with individual performance, organization performance, innovation, creativity and found positive results. Project success also arises from individual performance, innovation and creativity (Cameron et al., 2011).

The high level of psychological empowerment they motivated employees to perform and do the task well (Chiang & Hsieh, 2012). Studies found empowerment enhance project success (Sheffield & Lemétayer, 2012; Srivastava, Bartol and Locke, 2006). We argued that psychological empowerment playing significant role in project performance.

Job Satisfaction and Project Success (Performance)

Research shows Job satisfaction and project performance has been discussed many times by in past. Research by (Bechtold, Szilagyi, & Sims, 1980) shows that job satisfaction is very important factor for project success. Several researcher has been researched on job satisfaction and project success (Futrell & Parasuraman, 1984; Pettit, Goris, & Vaught, 1997) (Michaels, Cron, Dubinsky, & Joachimsthaler, 1988). According to Howell et al. (1987) job performance is directly relate to job satisfaction. If job performance of individual will be high, then job satisfaction also will be high and it will enhance project success.