FEMALE LEADERSHIP STYLES AND ORGANIZATIONAL … leadership styles and... · menilai kesan...

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FEMALE LEADERSHIP STYLES AND ORGANIZATIONAL COMMITMENT: A TEST ON SIBU MANUFACTURING COMPANIES Hii Hiong Lirig Corporate Master in Business Administration 2013

Transcript of FEMALE LEADERSHIP STYLES AND ORGANIZATIONAL … leadership styles and... · menilai kesan...

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FEMALE LEADERSHIP STYLES AND ORGANIZATIONAL COMMITMENT: A TEST ON SIBU MANUFACTURING COMPANIES

Hii Hiong Lirig

Corporate Master in Business Administration

2013

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Pusat Khidmat Maklumat Akademik UNIVERSITI MALAYSIA SARAWAK

F'.KHIDMAT MAKLUMAT AKADEMIK

1IIIIIIIIIIi'ijn111111111 1000246901

FEMALE LEADERSHIP STYLES AND ORGANIZATIONAL COMMITMENT: A TEST ON SIBU MANUFACTURING COMPANIES

By

Hii Hiong Ling (11031928)

A Research Paper Submitted in Partial Fulfillment of the Requirement for the Degree of

Corporate Master in Business Administration

Faculty of Economics and Business UNIVERSITY MALAYSIA SARAWAK

(2013)

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APPROVAL PAGE

I certified that I have supervised and read this study and in my opinion it conforms to acceptable

standards of scholarly presentation and is fully adequate in scope and quality as a research paper

for the degree ofCorporate Master in Business Administration.

DR. LOMAYCHIUN

This research paper was submitted to the Faculty of Economics and Business, UNIMAS and is

accepted as partial fulfillment of the requirements for the degree of Corporate Master in Business

Administration.

Professor Dr. Mohammad Affendy Arip Dean, Faculty of Economics and Business UNlMAS

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STATEMENT OF ORIGINALITY

The work described in this Research Paper, entitled

"FEMALE LEADERSHIP STYLES AND ORGANIZATIONAL COMMITMENT: A

TEST ON smu MANUFACTURING COMPANIES"

is to the best of the author's knowledge that of the author except

where due reference is made.

Date

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ABSTRACT

FEMALE LEADERSHIP STYLES AND ORGANIZATIONAL COMMITMENT: A TEST ON SIBU MANUFACTURING COMPANIES

By

Hii Hiong Ling

(The general objective of this study was to investigate the effect of transformational leadership

and transactional leadership on organizational commitment of manufacturing industry in Sibu,

Sarawak. The present research differs from the previous studies whereby the study 'S framework

has allowed for a better understanding on these relationship~j A total of 190 sets of questionnaires

were distributed to the respondents of the selected manufacturing films in Sibu, Sarawak, and

83.15% of it, which is 158 sets, was returned. There are seven hypotheses were tested in this field

study. The results showed there is a significant relationship between inspirational motivation,

individualized consideration, and management exception by passive towards the organizational

commitment. This study is useful for manufacturing industry to study, and evaluate the effect of

female's transformational leadership and transactional leadership towards the subordinates '

commitment in an organization.

IV

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ABSTRAK

GA Y A KEPIMPINAN WANITA DAN KOMITMEN ORGANISASI: UJIAN AT AS

SYARlKAT PEMBUATAN SIBU

Oleh

Hii Hiong Ling

Objektif umum kajian ini adalah untuk menyiasat kesan kepemimpinan transformasional dan

kepimimpinan transaksional yang akan mempengaruhi komitmen organisasi antara syarikat

pembuatan di Sibu. Kajian ini berbeza daripada kajian lepas di mana rangka kajian ini telah

dibenarkan untuk pemahaman yang lebih baik mengenai hubungan antara kepimpinan

tran fomasional dan kepimpinan transaksional. Sebanyak 190 set soal selidik telah diedarkan

kepada responden daripada syarikat -syarikat pembuatan yang tclah dipilih di Sibu, Sarawak, dan

83. 15% ,yang adalah 158 set soal selidik telah dipulangkan. Terdapat tujuh hipotesis telah diuji

dalam kajian bidang ini. Hasil kajian menunjukkan terdapat hubungan yang signifikan antara

motivasi inspirasi, pertimbangan individu, dan pengecualian pengurusan oleh pasif terhadap

komitmen organisasi. Kajian ini amat berguna untuk industri pembuatan untuk memahami dan

menilai kesan kepimpinan transformasi wanita dan kepimpinan transaksi ke arah komitmen

bawahan dalam sesebuah organisasi.

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ACKNOWLEDGEMENT

First and foremost, I would like to praise the Lord for the blessing and giving me the

strength to face all the challenges. I would like to give the special thanks to my beloved

supervisor, Dr. Lo May Chi un who is the most responsible person in helping me to complete my

study. Despite her heavy pre-occupations, she still provided me with guidance whenever I

approached her for problems that I had encountered in my study.

Besides, I would like to convey my appreciation to the organization which allowed me to

conduct my research in their organization. I would like to thanks all informants whose

Willingness and honestly has helped me to gather my data and complete the study. Thanks for the

participation and cooperation which made this thesis possible.

In addition, I would like to put into words to thank my friends and course mates who are

always shared information and suggestion with me during the process of completing my research

study.

Last but not least, I would like to take this opportunity to express my gratitude to my

beloved family for their constant supports, strong encouragement, assistance and understandings.

I would never come up to this stage where I am right now· without them.

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Pusat Khidmat Makluma{ AKademil{ UNIVERSlTI MALAYSIA SARAWAK

TABLE OF CONTENT

Content

Abstract

Abstrak

Acknowledgement

Table ofcontents

List of Tables

List of Figures

CRAYfER 1: INTRODUCTION

l.0 Background

1.1 The Malaysian Scenario

l.2 Problem Statement

1.3 Research Objectives

1.4 Research Questions

l.5 DefInition of Key Terms

1.5.1 Transformational Leadership

1.5.2 Transactional Leadership

l.5.3 Organizational Commitment

l.6 SignifIcance of Study

1.7 Scope of the Study

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Page Number

IV

V

VI

VII

xu

X III

1

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1.8

1.9

Limitation of the Study

Organization of Chapters

15

16

CHAPTER 2: LITERATURE REVIEW

2.0 Introduction

2.1

2.2

2.3

2.4

2.5

2.6

2.7

Women in Manufacturing Industry

Organizational Commitment

2.2.1 Affective Commitment

2.2.2 Continuance Commitment

2.2.3 Normative Commitment

Female Leadership

2.3.1 Transformational Leadership

2.3.2 Transactional Leadership

Conceptual Framework

Justification of Framework

Development of Hypothesis

2.6.1 Transformational Leadership and

Commitment

2.6.2 Transactional Leadership and

Commitment

Conclusion

Organizational

Organizational

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31

35

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CHAPTER 3: RESEARCH METHODOLOGY

3.0 Introduction 43

3.1 Research Site 43

3.2 Research Design 44

3.2.1 Population and Sample 44

3.2.2 Data Collection Procedure 46

3.3 Research Instrument 46

3.4 Measures 49

3.5 Statistical Analyses 50

3.5.1 Descriptive Statistic 50

3.5.2 Reliability Analysis 51

3.5.3 Inferential Statistic 53

3.5.3.1 Pearson Correlation 53

3.5.3.2 Multiple Regression 55

3.6 Conclusion 56

CHAPTER 4: FINDINGS

4.0 Introduction 57

4.1 Frequency Distribution 57

4.2 Respondent Demographic 58

43 Descriptive Analysis 61

4.4 Normality Test of Actual Data 65

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4.5 Reliability Test 66

4.6 Intercorrelation among Study Variables 67

4.7 Hypotheses Testing via Multiple Regression Analysis 69

4.8 Smnmary of the Findings 74

4.9 Conclusion 75

CHAPTER 5: DISCUSSION, RECOMMENDATION AND

CONCLUSION

5.0 Introduction 76

5.1 The Backdrop 76

5.2 Discussion of the Findings 78

5.2.1 Idealized Influence and Organizational Commitment 78

5.2.2 Inspirational Motivation and Organizational 79

Commitment

5.2.3 Intellectual Stimulation and Organizational 81

Commitment

5.2.4 Individualized Consideration and Organizational 82

Commitment

5.2.5 Contingent Rewards and Organizational 84

Commitment

5.2.6 Management by Exception Active and 85

Organizational Commitment

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5.2.7 Management by Exception Passive and Organizational 86

Commitment

5.3 Implications 87

5.3.1 Theoretical Perspective 87

5.3.2 Practical Perspective 88

5.4 Potential Limitations 89

5.5 Future Research 90

5.6 Conclusion 93

REFERENCES 94

APPENDIX A: SURVEY QUESTIONNAIRE 118

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LIST OF TABLES

Table Page

l.l Percentage Distribution of Employed Female by Industry 4

3.1 Development for each Variables 48

3.2 5-point Likert Scale 49

3.3 Reliability of the Pilot Test 52

3.4 Pearson Correlation Coefficient Values 55

4.1 Frequency Distribution of Survey Response 58

4.2 Respondents' Demographic 60

4.3 Mean and Standard Deviation Value for the Descriptive 61-64

Analysis

4.4 Normality Test of Actual Study 66

4.5 Reliability Statistic 67

4.6 Swnmary for Descriptive Statistic and Pearson 69

Correlation among Study Variable

4.7 Regression Results between Leadership Styles and 71

Organizational Commitment

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LIST OF FIGURE

1

Figure Page

2.1 Types of Organizational Commitment 21

2.2 Conceptual Framework of Effect of Leadership 38

Styles and Organizational Commitment among

Women in Manufacturing Industry

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CHAPTER 1

INTRODUCTION

1.0 Background:

In this modem era where world has become a global village, competitive on the basic

competition of human resources seems to become more important in any finns as managing

people in organizations is the most difficult task in order to compete with the market.

According to Mosadeghrad (2003), human resource is the most valuable and very important

factor organizations need in order to run the organizations smoothly, effectively and

efficiently.

However, management of employees is largely dependent on the quality of leadership

organizations have (Albion & Gagliardi, 2007). Profit organization is mainly depending on

the effectiveness of leadership in order to achieve the organizational goals, targets and to

create employees commitment for their organizations (Sabir, Sohail & Muhammad Asif

Khan Iqra, 2011). The success of an organization depends on the hard working, loyal and

involved managers and employees so that employees are committed with the organizations.

Swanepoel, Eramus, VanWyk and Scheck (2000) emphasized that the successful

implementation of the business strategies is based on the ability of an organization to gain a

competitive advantage and maximize human capital, which rely on the leadership styles that

encourage employee commitment. Panayiotis, Pepper and Phillips (2011) mentioned the

increase of low trust, high stress and uncertainty will cause the job is insecurity if the

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workforce is not committed which will direct negative influence on the perfonnance of the

organizations.

Ramchandran and Krishnan (2009) found that there is [eader and style of that leader is

one of the most vital detenninants of employee's commitment. Bass (1985) and Stogdill

(1963) stated the work related behavior such as employee's attitude, motivation and

perfonnance will be affected through leadership which influences the levels of organizational

commitment.

Nowadays, strongly competitive business environment, committed workforce has now

become issue of survival for every organization (Muhamad Usman Qaisar, Muhammad

Safdar Rehman & Muhamd Suffyan, 2012). Organizational commitment is critical because

workers who are committed will have less intention to leave the job, low absenteeism and

high motivation to perfonn the job at advanced level. Muthuveloo and Rose (2005) defined

organizational commitment as worker's level of participation with the job and organization

which can be attributed as employees' loyalty and faithfulness towards organization and

intention to be the part of that organization. Meyer and Allen (1990) had divided

organizational commitment into three basic components which are affective commitment,

normative commitment and continuance commitment.

Obiwuru, Okwu, Akpa and Nwankwere (2011) stated the leadership style in an

organization is one of the factors that play significant role in enhancing or retarding the

individual's interest and commitment towards the organization . Bass (1985) defined the

operational work to develop a model of transfonnational and transactional leadership in more

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recent publications as the full range leadership model which categorized into four behaviors

or components of transfonnationalleadership consisted of charisma, inspirational motivation,

intellectual timulation and individual consideration.

Various past studies cover different aspects of leadership and its relationship with

organizational commitment. Swanepoel, Eramus, Van Wyk and Scheck (2000) described that

the combination of organizational commitment and leadership style is encouraged for the

successful implementation of business strategies to reach the organizational goals. Research

done by Lo, Ramayah and Hii (2009) on the leadership style and its relationship with

organizational commitment has concluded that transactional and transformational leadership

positively correlated with organizational commitment.

1.1 Malaysia Scenario:

Since year 1975 the Malaysian government has taken steps to recognize women's role

and their contributions towards the economic development of nation (Koshal, Gupta &

Rajindar Koshal, 1998). For the first time, a "Women in Development" chapter was included

in the Sixth Malaysia Plan (1991-1995) and Chapter 20 of Women in Development had

continually identified the women in development until the Ninth Malaysia Plan (2006-2010).

Thus, this shows that women in society have been taken seriously. The roles and recognition

ofwomen will never be forgetten by the Malaysia government as the government is trying to

increase the female participation in the labor force.

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Malaysian women increasingly contribute to a significant proportion of labor force in

Manufacturing Sector. Apart from that, Malaysia's reliance on business in manufacturing

sector which contributed more than 40% in Growth Domestic Product (GDP) certainly

demands to be always highly committed and performed (Trade Chakra, 2009). The fo Uowing

table shows that the manufacturing industry is the highest largest employment of women in

comparison to other industry sector in Malaysia (Malaysia Department of Statistics, 20 10).

The participation of Malaysian women in manufacturing sector has showed clearly an

upward trend from 22.0% in 2005, to 22.2% in 2006, and 17.5% in year 2009. The

percentage is increased for the year of 2010 with the amount of 17.9%. Women in

manufacturing industry achieved the highest percentage among other category of industry.

(Malaysia Department of Statistics, 20 I 0).

Table 1.1: Percentage Distribution of Employed Female by Industry

Category of Industry

Year

2005 2006 2007 2008 2009 2010

Manufacturing 22.0% 22.2% 20.6% 20.05% 17.5% 17.9%

Wholesale and retail trade, I

repair of motor vehicles,

motorcycles and personal

and household goods

15.6% 15.6% 15 .6% 16.0% 16.6% 16.2%

Education 10.8% 10.7% 10.8% 11.3% 12.1% 12.7%

Constructions 2.0% 2.0% 1.8% 2.2% 2.0% 2.3%

(MalaYSia Department of StatistiCS, 20 10)

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Pusat Khidmat Maklumat Akademik UNlVERSrn MALAYSIA SARAWAK

According to Deputy Minister in the Prime Minister's Department, Datuk S.K.

Devamany (Bernama, 2012), a majority of Malaysians had accepted and supported the

leadership of Prime Minister Datuk Seri Najib Tun Razak and the I Malaysia concept

openly, praising the Prime minister as the Father of I Malaysia and the Father of the

Country's Transformation. However, it is clear that through Najib's leadership which began

on April 3, 2009, the people had witnessed much changes and transformation.

The women leadership seems to play important roles in current society as the Women,

Family and community Development Ministry, Datuk Seri Shahrizat Abdul Jalil announced

(Bernama, 2012) the set-up of Women Leadership Chair at Universiti Kebangsaan Malaysia

(UKM) mainly to encourage conductions of researches on women leadership at both national

and international levels. The investment of the government's aspiration is to increase the

participation of women, as well as good leadership value to achieve the national agenda in

developing the quality of human capital.

A study done by Marmaya, Hitam, Torsiman and Balakrishnan (2011) entitled

"Employees perceptions of Malaysian managers' leadership styles and organizational

commitment" which focus on 20 female and 20 male in Malaysia. The results indicated both

female and male shows a significant correlation between leadership styles and organizational

commitment. The correlation supports the hypothesis that proposed a positive relation

between transformational and transactional leadership towards organizational commitment.

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1.2 Problem Statements:

Most of the studies are conducted in Western countries such as Pakistan (Rehman,

Shareef, Mahmud & Ishaque, 2012; Bushra, Usman & Naveed, 2011), however there are

empirical studies done in eastern countries which are related to leadership style and

organization commitment. However, according to Raja and Palanichamy (2011), most of the

researches on transformational leadership are conducted in the U.S.A despite the increasing

support has been done from international studies as well. Therefore, there is a need to explore

more leadership style and organization commitment in Malaysia. However, these studies also

serve to confirm the results from the previous researches and compare the effect of

leadership style on organization commitment in different country.

Department of Statistic Malaysia (2011) reported the female's turnover is higher than

male which is 12.0% for the year 2010 if compare to male, 10.9%. Thus, the higher turnover

is one of the reasons which the women in Malaysia do not have commitments with the

organization. According to Ensher, Grant-Vallone and Donaldson (20 II), women are the

minorities who are facing the challenges in sustaining organizational commitment.

lackofsky (1984) stated the low commitment will lead to high rate of turnover.

However, organizational commitment is become more critical due to its link with tendency to

leave and turnover (Brown & Peterson, 1993), low level of morale (DeCottis & Summers,

1987) and decreased measures of altruism and compliance (Aamir & Sohail, 2006). It shows

that organizational commitment is plays important roles which will directly affect the

employees' performance.

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Previous studies indicated that job stress and job satisfaction is significantly correlated

with continuous commitment and will influence the decision of employees to continue stay

or quit from a job (Bejamin Chan, Yeoh & Syuhaily Osman, 2010). It shows that the high

rate ofstress and low satisfaction will produce very low organizational commitment.

The issue of work-life balance is playing vital roles among the women in labour force.

A study done by Devi and Rani (2012) which focus on 711 women employees to examine

the impact of work-life balance on organizational commitment. The result indicated the

work-life balance is an important predictor of organizational commitment. According to

Grover and Crooker (1995), organization should provides work-life balance support so that

employees will feel that organization concerns about their life and feel that they enjoys

special privileges from organization which will cultivates the loyalty and commitment to

organization. Apart from that, work-family conflict which implies work-life imbalance was

found to be negatively related to organizational commitment due to the increasing

participation of women in the paid work, rising dual career families and diverse workforce

(Good. Page & Young, 1996).

1.3 Research Objective:

This study is conducted to identify the effect of female leadership style and

organization commitment among the women in Manufacturing Industry in Sibu areas. The

specific objectives are:

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• to detennine the impact of idealized influence on organizational commitment such as

affective commitment, normative commitment and continuous commitment among women

in Manufacturing Industry.

• to detennine the impact of inspirational motivation on organizational commitment

such as affective commitment, normative commitment and continuous commitment among

women in Manufacturing Industry.

• to examine the impact of intellectual stimulation on organizational commitment such

u affective commitment, normative commitment and continuous commitment among

women in Manufacturing Industry.

• to fmd out the impact of individualized consideration on organizational commitment

such as affective commitment, normative commitment and continuous commitment among

women in Manufacturing Industry.

• to investigate the impact of contingent reward on organizational commitment such as

affective commitment, nonnative commitment and continuous commitment among women

in Manufacturing lndustry.

to examine the impact of management by exception active on organizational

oommitment such as affective commitment, normative commitment and continuous

commitment among women in Manufacturing Industry.

• to find out the impact of management by' exception paSSive on organizational

commitment such as affective commitment, normative commitment and continuous

commitment.

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1.4 Research Questions:

l. Will idealized influence affect on the organizational commitment among women in

Manufacturing Industry?

2. Will inspirational motivation influence on the organizational commitment among

women in Manufacturing Industry?

3. Will intellectual stimulation influence on the organizational commitment among

women in Manufacturing Industry?

4. Will individualized consideration influence on the organizational commitment among

women in Manufacturing Industry?

5. Will contingent rewards influence on the organizational commitment among women in

Manufacturing Industry?

6. Will management by exception active influence on the organizational commitment

among women .in Manufacturing Industry?

7. Will management by exception passive influence on the organizational commitment

among women .in Manufacturing Industry?

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1.5

1.5.1

Definitions of Key Terms:

Leadership

According to Dejong and Hartog (2007), described leadership as a process to influence

people in order to get desired results that expected from a certain people.

1.5.2 Transformational Leadership

Bmos (1978) defined it as a process where leader's effect or influence on one or more

followers so that each followers will raise the motivation to each others in order to exceed

the expectation and achieve high level of morality.

1.5.2.1 Idealized Influence

Mannaya et ai. (2011) defined as the role model who the leaders need behave on to directly

influence the subordinate or followers so that they become admired, respected and trusted .

.5.2.2 Inspirational Motivation

According to Gao and Bai (2011), inspirational motivation occurs when leaders encourage

and stimulate those around them by providing challenges with high standards and meaning to

their work for the future goals.

1.3 Intellectual Stimulation

According to Marrnaya et al. (2011), intellectual stimulating refers to the awareness of the

problems, thoughts and imaginations by subordinate which recognizes their own beliefs and

es.

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