Organizational Assessment of Leadership and the Impact it has on Job

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OrganizationalAssessment of Leadership and the Impact it has on Job Satisfaction


OrganizationalAssessment of Leadership and the Impact it has on Job Satisfaction


How does Organizational leadership impacts on job satisfaction at Standard Bank Business Eastern Cape?

ection 1: Concept map

Organizational leadership

Servant leadership

Job satisfaction

Leadership succession

Roles and styles

Increase in employee loyalty


Increase in employee commitment

Increase in staff productivity

Section2: Literature review

Leadershipof any organization has a strong effect on the type of attitude thatemployees develop towards their job and the organization at large.The role of leadership teams in organizations have changed over time,where the success of the company is now influenced by the leadershipstyle adopted by leaders (Omar, 2013, p. 347 and Belias, 2014, p.24). Leaders influence employees’ love for their job in many ways,including the establishment of a favorable working environment (Yun,2007, p. 187) engaging members of staff in decision making (Long,2014, p. 122) developing an organizational culture that is acceptableto employees, and developing a vision that takes account of the needsof the organization as well as the needs of employees (Arzi, 2014, p.123). The present literature review focuses on how previous studieshave addressed the ability of organizational leadership to use acombination of factors to influence employee job satisfaction.

  1. Organizational leadership

Organizationalleadership is not a completely novel concept to this era. Forcenturies, scholars have studied the self-organizing traits ofdifferent groups, emergence of leadership, and traits of individualleaders. Organizational leadership is considered to be inherent inthe very nature of an individual organization. Leadership is apeculiar relationship that emergences as people join the organizationto form a collaborative association. Leadership, its role, andsignificance in the organization are explained using the historicalas well as the contemporary theories of leadership.

    1. Historical theories of leadership

Thetrait theory of leadership is based on the notion that leaders areborn and they have special inheritable traits that distinguish themfrom non-leaders. Some of core traits of effective organizationalleaders include the achievement drive, honesty, self-confidence,integrity, cognitive ability, and emotional intelligence (Guillaume,2013, p. 446). Although the trait theory of leadership is stillimportant to-date, researchers, it was discovered in the 1940s thatthe personality traits alone were insufficient to predict theeffectiveness of a leader, which necessitated the development ofother leadership theories.

Thebehavioral theory of leadership is a complete departure from thebasic assumptions of the trait theory. Behavioral theorists look atwhat individual leaders do, rather than their inborn traits, whenassessing the leadership effectiveness (Rizi, 2013, p. 7). Inaddition, the behavioral theory holds that leadership can be learned.This implies that leaders can learn different strategies that areneeded in different work settings and workgroups.

Thecontingency theory is founded on the assumption that the leadershipeffectiveness is dependent on the situation. The theory holds that aleader may be effective in one situation and less effective in anthersituation since leadership strategies are not one-size-fit-all(Vroom, 2007, p. 17). Leaders who believe in the contingency theoryapply different leadership strategies depending on the nature of thetask and make-up of the group that is being led (Kriyantono, R.,2012, p. 124).

    1. Contemporary theories of leadership

Overthe years, scholars and researchers have introduced new leadershipapproaches and theories. For example, the transformative leadershipis a contemporary leadership approach in which the leader involve thefollows in the process of identifying the need a change, developingthe vision that will guide the organization towards the change, andinviting committed members to take part in the implementation ofchange (Ali, 2013, p. 9). Rather than focusing on the traits andbehaviors of the leader, transformational leadership approach holdsthat both the leader and the people being led have the responsibilityof elevating the level of human interaction and conduct of each other(Goertzen, 2010, p. 83 and Bushra, 2011, p. 261). This indicates thatcontemporary theories are increasingly focusing on thecharacteristics of the leaders and the people being led.

    1. Value-based leadership

Theconcept of value-based leadership holds that the values that areupheld by the organization and the values of individual leaders aswell as employees should be aligned (Coperland, 2014, p. 106).Organizations that invest in value-based leadership communicateorganization’s core values to employees with the objective ofconnecting the personal values of individual employees with the corevalues of the organization, which ensures that the members of staffidentify strongly with the company and its mission (Voon, 2011, p.26). Servant leadership theory is among the perspectives that arebased on the concept of value-based leadership. Robert Greenfielddefined servant leadership as a way of life that starts with thedevelopment of a natural feeling that one would like to serve, ratherthan being served (McCann, 2014, p. 29). The major characteristicthat distinguishes servant leaders from traditional leaders is thefact that servant leaders aim at facilitating the growth as well asthe well-being of their followers. Other characteristics of a servantleader include hearing, listening, foresight, awareness, empathy, andconceptualization (Coperland, 2014, p. 106). Most of the studies andscales that have been developed indicate that the servant leadershipis a reliable predictor of job satisfaction (Tischler, 2016, p. 1).Therefore, servant leadership provides a suitable framework forstudying the impact of the organizational leadership on the jobsatisfaction.

  1. Job satisfaction

Jobsatisfaction among employees is among the key factors that determinethe employee’s tendency to continue working for a givenorganization and demonstrate maximum dedication at work. Jobsatisfaction refers to employee’s attitude towards the job or theiremotional reaction towards their current work environment(Ghosbanian, 2012, p. 2 and Tsai, 2011, p. 2). This attitude resultsfrom employees’ evaluation of results against their expectations.Studies have shown that effective management of variables that arelikely to influence behavior of employees affects their performancelevels and discretionary efforts (Josanov, 2014, p. 45). Therelationship between the management of factors influencing employees’behavior and their performance indicates that members of staff feelmotivated when the organizations address issues that affect them.Other studies have shown that intrinsic motivation influenceemployees’ personal emotional and personal perception state, whichleads to job satisfaction (Malik, 2013, p. 212). Studies focusing onthe relationship between extrinsic motivation and job satisfactionhave shown that members of staff feel more satisfied and demonstratetheir willingness to stay with their present employer company whenreceive salary, promotion, and benefits that they feel arecommensurate to amount of work done (Saleem, 2015, p. 565).

  1. Impact of servant leadership on job satisfaction

Servantleadership is based on the core values of serving and caring forothers, and its main focus is on the aspects f trust, empowerment,and appreciation of followers. Genuine authenticity and caring thatis demonstrated by servant leaders has been shown to increaseorganizational effectiveness (Hanysha, 2012, p. 147, Ibraheem, 2011,p. 38 and Emmanuel, 2015, p. 5). This indicates that the servantleadership model enhance employee performance and satisfaction byfocusing on their needs, both emotional and physical. An increase inperformance of employees who work under servant leaders is anindication of their being motivated and satisfied with their job. Theability of the leaders to show empathy and the willingness to empowerfollowers instead of micromanaging them creates a perception that theorganization exists to serve the interests of its stakeholders(including the employees) and not just making profits, which enhanceemployee satisfaction. Moreover, servant leadership is characterizedwith extensive staff engagement, which provides a platform formembers of staff to exercise their skills and knowledge. Althoughmost of the employees feel motivated by extrinsic and extrinsicrewards, some employees are more interested in jobs that give themthe room and the autonomy to practice what they know (Maqsood, 2013,p. 140). Putting this category of employees under servant leadershipgives them an opportunity to feel fully engaged and empowered, whichin turn increases their job satisfaction.

  1. Employee commitment

Jobsatisfaction is measured using several variables, but one of the mosteffective measures is employee commitment. Studies have established apositive correlation between job satisfaction and employee commitmentas well the demonstration of loyalty to the employer organization(Susan, 2011, p. 509 and Bateh, 2012, p. 25). A similar studyconducted by McCann (2012, p. 30) indicated that employee who have aperception that their leaders apply the servant leadership model are85 % likely to feel motivated and 79 % of them demonstrate highlevels of commitment and loyalty. A combination of job satisfaction,commitment, and loyalty results in substantial increase inperformance of individual employees and the organization. Employeesdemonstrate their commitment through positive behavior, attitudetowards the organization as well the organization’s leadership, andintention to continue working for organization (Amin, 2013, p. 96,Stander, 2014, p. 27 and Ding, 2012, p. 2). This answers the researchquestion, by indicating that servant leadership improve jobsatisfaction, which is confirmed by an increase in commitment,loyalty, and performance of employees who believe that they are ledby servant leaders.

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Arzi,S. and Farahbod, L., 2014. The impact of leadership style on jobsatisfaction: A study of Iranian hotels. InternationalJournal of Contemporary Research in Business,6 (3), p. 171-186.

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