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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
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 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 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 2 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 3 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 4 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 5 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 6 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 7 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 8 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 9 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 10 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 11 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 12 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 13 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 14 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 15 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 16 MsMFHR Lim A Po Institute
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
Source Annual Reports CKC BEM 1999-2004
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
Marlegravene Amelo MBA-Intake 1 2003 page 17 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 18 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 19 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 20 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 21 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 22 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 23 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 24 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 25 MsMFHR Lim A Po Institute
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)
Marlegravene Amelo MBA-Intake 1 2003 page 26 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 27 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 28 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 29 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 30 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 31 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 32 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 33 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 34 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 35 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 36 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 37 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 38 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 39 MsMFHR Lim A Po Institute
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
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
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
Marlegravene Amelo MBA-Intake 1 2003 page 40 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 41 MsMFHR Lim A Po Institute
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)
Marlegravene Amelo MBA-Intake 1 2003 page 42 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 43 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 44 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 45 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 46 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 47 MsMFHR Lim A Po Institute
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)
Marlegravene Amelo MBA-Intake 1 2003 page 48 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 49 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 50 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 51 MsMFHR Lim A Po Institute
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
RQ1 What evidence exists that Transformational Leadership influences outcome measures in
organization in an emerging economy This question was assessed using the MLQ
Marlegravene Amelo MBA-Intake 1 2003 page 52 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 53 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 54 MsMFHR Lim A Po Institute
Table 7 Correlation between Transactional Leadership and the Performance Outcomes
Correlation Extra Effort Effectiveness Satisfaction Transactional Leadership 054 057 057
622 Research Question 2
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
Marlegravene Amelo MBA-Intake 1 2003 page 55 MsMFHR Lim A Po Institute
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
6241 Results of Job Satisfaction
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
Marlegravene Amelo MBA-Intake 1 2003 page 56 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 57 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 58 MsMFHR Lim A Po Institute
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
commitment to treat employees in a sensitive and considerate manner They expressed trust in
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
Marlegravene Amelo MBA-Intake 1 2003 page 59 MsMFHR Lim A Po Institute
CHAPTER SEVEN
7 CONCLUSIONS AND PRACTICAL IMPLEMENTATION
71 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 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
Marlegravene Amelo MBA-Intake 1 2003 page 60 MsMFHR Lim A Po Institute
73 Summary and Conclusions
The objectives of the study were
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
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
Marlegravene Amelo MBA-Intake 1 2003 page 61 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 62 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 63 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 64 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 65 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 66 MsMFHR Lim A Po Institute
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
7613 Incentive Program
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
Marlegravene Amelo MBA-Intake 1 2003 page 67 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 68 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 69 MsMFHR Lim A Po Institute
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Algemeen Bureau voor de Statistiek Statistical Yearbook Suriname 2003 Suriname in cijfers 211 ndash 200403 Suriname 2004
Al-Suwaidi Jamal S Leadership and Management in the Information age An Overview United
Arab Emirates The Emirates Center for Strategic Studies and Research 2002 Anthony Robert N Vijay Govindarajan Management Control Systems 11th ed United States
of America Mc Graw Hill 2004 Avolio Bruce J Publications Kellogg Leadership Studies Project Transformational
Leadership Working Papers The Great Leadership Migration to a Full Range Leadership Development System The James MacGregor Burns Academy of Leadership Academy of Leadership Press 1997 [On Line] Retrieved from httpwwwacademyumdedupublicationsklspdocstransformational_indexhtm [2005 January 10]
Avolio Bruce J Full Leadership Development Building the Vital Forces in Organizations
Thousand Oaks California Sage Publications Inc 1999 Avolio Bruce J and Bernard M Bass ed Developing Potential Across a Full Range of
Leadership Tm Cases on Traditional and Transformational Leadership Mahwah New Jersey Laurence Erlbaum Associates 2002
Avolio Bruce J and Bernard M Bass Multifactor Leadership Questionnaire 3rd ed Manual
and Sampler Set United States of America Mind Garden Inc 2004 Avolio Bruce J and Francis J Yammarino ed Monographs in Leadership and Management
Vol 2 Transformational and Charismatic Leadership The Road Ahead Kidlington Oxford UK Elsevier Science Ltd 2002
Ballenger K Eric Corporate Leaders Must Change Their Focus to Restore Public Confidence
Hanover Quarterly Winter 2003 [On Line] Retrieved from httphanovereduhanovertodaypublicationsquarterly [2005 April 28]
Bartlett Christopher A and Sumantra Ghoshal Harvard Business Review on Global Strategies
What is a Global Manager 7th ed President and Fellows of Harvard College United States of America Harvard Business School Press 1994
Bartlett Christopher A and Sumantra Ghoshal Managing Across Borders The
Transformational Solution 2nd ed United States of America Harvard Business School Press 2002
Marlegravene Amelo MBA-Intake-1 2003 page i MsMFHR Lim A Po Institute
Bartlett Christopher A and Sumantra Ghoshal The Individualized Corporation A
Fundamentally New Approach to Management United States of America Harper Business 1997 New York Harper Perennial 1999
Bass Bernard M Does the Transactional-Transformational Leadership Paradigm Transcend
Organizational and National Boundaries Journal of American Psychologist Volume 52 Number 2 Binghamton State University of New York February 1997
Bass Bernard M Publications Kellogg Leadership Studies Project Transformational
Leadership Working Papers The Ethics of Transformational Leadership The James MacGregor Burns Academy of Leadership Academy of Leadership Press 1997 [On Line] Retrieved from httpwwwacademyumdedupublicationsklspdocstransformational_indexhtm [2005 January 10]
Bass Bernard M Transformational Leadership Industrial Military and Educational Impact
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
Transformational Leadership United States of America Sage Publications Inc 1994 Bass Bernard M Paul Steidlmeier Ethics Character and Authentic Transformational
Leadership Center for leadership Studies School of Management Binghamton University Binghamton NY 1998 [On Line] Available httpEthicsMoralCharacterandAuthenticTraditionalLeadership [2005 January 28]
Bavendam James PhD Effective Management Through Measurement Managing Job
Satisfaction Bavendam Research Incorporated Special Reports Volume 6 2000 [On line] Retrieved from httpwwwemployeesatisfactioncom [2005 April 21]
Becker Brian E Mark A Huselid and Dave Ulrich The HR Scorecard Linking People
Strategy and Performance United States of America Harvard Business School Press 2001
Bennis Warren G On Becoming a Leader The Leadership Classic 2nd ed United States of
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Marlegravene Amelo MBA-Intake-1 2003 page ii MsMFHR Lim A Po Institute
Bennis Warren G Leadership and Management in the Information age A Farewell to Old
Leadership United Arab Emirates The Emirates Center for Strategic Studies and Research 2002
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
Brana ndash Shute Gary Leadership in the Caribbean Working Papers Policy papers on the
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
Brockner Joel Phillis A Siegel Joseph P Daly Martin Christopher Tom Tyler When Trust
Matters the moderating effect of outcome favorability Administrative Science Quarterly September 1997 [On Line] Retrieved from httpwwwfindarticlescomparticles [2005 March 30]
Burns James Macgregor Leadership New York Harper amp Row Publishers Inc 1978 New
York Perennial 1979 Burns James Macgregor Transforming Leadership A New Pursuit of Happiness New York
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and Employee Satisfaction United States of America Development Dimensions International Publications 1988 Reprint New York Ballantine Publishing Group 1998
Central Intelligence Agency The World Factbook Suriname [On Line] Retrieved from
httpwwwciagovpublicationsfactbookprintsnshtml [2004 August 3] Chowdhury Subir (led by) Next Generation Business Handbook New Strategies from
Tomorrows Leaders Hoboken New Jersey John Wiley amp Sons Inc 2004 Ciancutti Arky MD and Thomas L Steding Built on Trust Gaining Competitive Advantage
in Any Organization Illinois Contemporary Books 2001 Ciulla Joanne B ed Foreword by James MacGregor Burns Ethics The Heart of Leadership
Westport Connecticut London Quorum Books 1998 United States of America Preager 1998
CKC BEM NV Annual reports 1999-2004 Paramaribo 2000-2005
Marlegravene Amelo MBA-Intake-1 2003 page iii MsMFHR Lim A Po Institute
CKC BEM NV Audit reports 1999- 2004 by Ernst amp Young Accountants Paramaribo 2000-
2005 CKC BEM NV PUM Report CKC BEM NV Suriname By M van der Werken Paramaribo
1998 CKC BEM NV Quick Scan Paramaribo July 2001 CKC BEM NV Rapport Betongroep By Werkgroep Betonsector C Kersten amp Co NV
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
Bedrijfsgezondheidszorg Paramaribo 2001 Cone John D and Sharon L Foster Dissertation and Theses from Start to Finish Psychology
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
Competence or Charisma United Arab Emirates The Emirates Center for Strategic Studies and Research 2002
Couto Richard A Publications Kellogg leadership studies project Transformational
Leadership Working Papers Social Capital and Leadership The James MacGregor Burns Academy of Leadership Academy of Leadership Press 1997 [On Line] Retrieved from httpwwwacademyumdedupublicationsklspdocstransformational_indexhtm [2005 April 28]
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
Publishers 1994 [On Line] Retrieved from httpwwwleadingtodayorg [2005 January 27]
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
Studies March 2001 [On Line] Retrieved from httpwwwfindarticlescomparticles [2005 March 30]
Gill Roger Beyond Transformational Leadership Developing Vision Values and Strategy
Research Center for Leadership Studies England [On Line] Retrieved from wwwleadershipcouk [2005 January 28]
Goleman Daniel Richard Boyatzis and Annie McKee Harvard Business Review on
Breakthrough Leadership Primal Leadership The Hidden Driver of great Performance 4th ed Harvard Business School Publishing Corporation United States of America Harvard Business School Press 2001
Goleman Daniel Harvard Business Review on What Makes a Leader Leadership That gets
Results 4th ed Harvard Business School Publishing Corporation United States of America Harvard Business School Press 2001
Goleman Daniel Harvard Business Review on What Makes a Leader What Makes a Leader
4th ed Harvard Business School Publishing Corporation United States of America Harvard Business School Press 2001
Gupta Jatinder N D and Sushil K Sharma Intelligent Enterprises of the 21st Century United
States of America Idea Group Publishing 2004 Handy Charles Stephen Covey Michael Porter CK Prahalad Gary Hamel Michael Hammer
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
Valid Not at all 2 14 41 41 Once in a While 4 27 82 122 Sometimes 12 81 245 367 Fairly often 19 128 388 755 Frequently if not always 12 81 245 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Inspirational Motivation Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 2 14 41 41 Once in a While 2 14 41 82 Sometimes 7 47 143 224 Fairly often 14 95 286 510 Frequently if not always 24 162 490 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 669 Total 148 1000
Total Individualized Consideration Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 1 7 20 20 Once in a While 9 61 184 204 Sometimes 13 88 265 469 Fairly often 18 122 367 837 Frequently if not always 8 54 163 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Contingent Reward Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 3 20 61 61 Once in a While 5 34 102 163 Sometimes 9 61 184 347 Fairly often 15 101 306 653 Frequently if not always 17 115 347 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 6689 Total 148 10000
Total Management by Exception Active Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 4 270 816 816 Once in a While 20 1351 4082 4898 Sometimes 13 878 2653 7551 Fairly often 11 743 2245 9796 Frequently if not always 1 068 204 10000 Total 49 3311 10000
Missing System 99 6689 Total 148 10000
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
Missing System 99 6689 Total 148 10000
Total Extra Effort Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 3 20 61 61 Once in a While 1 7 20 82 Sometimes 14 95 286 367 Fairly often 17 115 347 714 Frequently if not always 14 95 286 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Effectiveness Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 2 14 41 41 Once in a While 6 41 122 163 Sometimes 11 74 224 388 Fairly often 17 115 347 735 Frequently if not always 13 88 265 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Satisfaction Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 3 20 61 61 Once in a While 2 14 41 102 Sometimes 7 47 143 245 Fairly often 18 122 367 612 Frequently if not always 19 128 388 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 669 Total 148 1000
total direct communication
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 1 7 20 20
Neutral 14 95 286 306 Agree 33 223 673 980 Strongly Agree 1 7 20 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
total commitment
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 4 27 82 82
Neutral 21 142 429 510 Agree 16 108 327 837 Strongly Agree 8 54 163 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
total speedy resolution
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 4 27 82 82
Neutral 21 142 429 510 Agree 20 135 408 918 Strongly Agree 4 27 82 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
total responsibility
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 2 14 41 41
Neutral 13 88 265 306 Agree 27 182 551 857 Strongly Agree 7 47 143 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 669 Total 148 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
Valid 0 99 669 669 669 Strongly Disagree 8 54 54 723 Disagree 9 61 61 784 Neutral 5 34 34 818 Agree 6 41 41 858 Strongly Agree 21 142 142 1000 Total 148 1000 1000
Colleagues Frequency Percent Valid Percent Cumulative Percent
Valid 0 99 669 669 669 Strongly Disagree 9 61 61 730 Disagree 5 34 34 764 Neutral 8 54 54 818 Agree 12 81 81 899 Strongly Agree 15 101 101 1000 Total 148 1000 1000
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
Valid 0 99 669 669 669 Strongly Disagree 16 108 108 777 Disagree 11 74 74 851 Neutral 7 47 47 899 Agree 6 41 41 939 Strongly Agree 9 61 61 1000 Total 148 1000 1000
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
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
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
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 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
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 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 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 2 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 3 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 4 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 5 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 6 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 7 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 8 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 9 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 10 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 11 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 12 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 13 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 14 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 15 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 16 MsMFHR Lim A Po Institute
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
Source Annual Reports CKC BEM 1999-2004
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
Marlegravene Amelo MBA-Intake 1 2003 page 17 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 18 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 19 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 20 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 21 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 22 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 23 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 24 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 25 MsMFHR Lim A Po Institute
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)
Marlegravene Amelo MBA-Intake 1 2003 page 26 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 27 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 28 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 29 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 30 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 31 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 32 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 33 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 34 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 35 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 36 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 37 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 38 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 39 MsMFHR Lim A Po Institute
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
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
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
Marlegravene Amelo MBA-Intake 1 2003 page 40 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 41 MsMFHR Lim A Po Institute
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)
Marlegravene Amelo MBA-Intake 1 2003 page 42 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 43 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 44 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 45 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 46 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 47 MsMFHR Lim A Po Institute
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)
Marlegravene Amelo MBA-Intake 1 2003 page 48 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 49 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 50 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 51 MsMFHR Lim A Po Institute
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
RQ1 What evidence exists that Transformational Leadership influences outcome measures in
organization in an emerging economy This question was assessed using the MLQ
Marlegravene Amelo MBA-Intake 1 2003 page 52 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 53 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 54 MsMFHR Lim A Po Institute
Table 7 Correlation between Transactional Leadership and the Performance Outcomes
Correlation Extra Effort Effectiveness Satisfaction Transactional Leadership 054 057 057
622 Research Question 2
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
Marlegravene Amelo MBA-Intake 1 2003 page 55 MsMFHR Lim A Po Institute
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
6241 Results of Job Satisfaction
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
Marlegravene Amelo MBA-Intake 1 2003 page 56 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 57 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 58 MsMFHR Lim A Po Institute
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
commitment to treat employees in a sensitive and considerate manner They expressed trust in
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
Marlegravene Amelo MBA-Intake 1 2003 page 59 MsMFHR Lim A Po Institute
CHAPTER SEVEN
7 CONCLUSIONS AND PRACTICAL IMPLEMENTATION
71 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 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
Marlegravene Amelo MBA-Intake 1 2003 page 60 MsMFHR Lim A Po Institute
73 Summary and Conclusions
The objectives of the study were
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
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
Marlegravene Amelo MBA-Intake 1 2003 page 61 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 62 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 63 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 64 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 65 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 66 MsMFHR Lim A Po Institute
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
7613 Incentive Program
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
Marlegravene Amelo MBA-Intake 1 2003 page 67 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 68 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 69 MsMFHR Lim A Po Institute
SELECTED BIBLIOGRAPHY
Algemeen Bureau voor de Statistiek Statistical Yearbook Suriname 2003 Suriname in cijfers 211 ndash 200403 Suriname 2004
Al-Suwaidi Jamal S Leadership and Management in the Information age An Overview United
Arab Emirates The Emirates Center for Strategic Studies and Research 2002 Anthony Robert N Vijay Govindarajan Management Control Systems 11th ed United States
of America Mc Graw Hill 2004 Avolio Bruce J Publications Kellogg Leadership Studies Project Transformational
Leadership Working Papers The Great Leadership Migration to a Full Range Leadership Development System The James MacGregor Burns Academy of Leadership Academy of Leadership Press 1997 [On Line] Retrieved from httpwwwacademyumdedupublicationsklspdocstransformational_indexhtm [2005 January 10]
Avolio Bruce J Full Leadership Development Building the Vital Forces in Organizations
Thousand Oaks California Sage Publications Inc 1999 Avolio Bruce J and Bernard M Bass ed Developing Potential Across a Full Range of
Leadership Tm Cases on Traditional and Transformational Leadership Mahwah New Jersey Laurence Erlbaum Associates 2002
Avolio Bruce J and Bernard M Bass Multifactor Leadership Questionnaire 3rd ed Manual
and Sampler Set United States of America Mind Garden Inc 2004 Avolio Bruce J and Francis J Yammarino ed Monographs in Leadership and Management
Vol 2 Transformational and Charismatic Leadership The Road Ahead Kidlington Oxford UK Elsevier Science Ltd 2002
Ballenger K Eric Corporate Leaders Must Change Their Focus to Restore Public Confidence
Hanover Quarterly Winter 2003 [On Line] Retrieved from httphanovereduhanovertodaypublicationsquarterly [2005 April 28]
Bartlett Christopher A and Sumantra Ghoshal Harvard Business Review on Global Strategies
What is a Global Manager 7th ed President and Fellows of Harvard College United States of America Harvard Business School Press 1994
Bartlett Christopher A and Sumantra Ghoshal Managing Across Borders The
Transformational Solution 2nd ed United States of America Harvard Business School Press 2002
Marlegravene Amelo MBA-Intake-1 2003 page i MsMFHR Lim A Po Institute
Bartlett Christopher A and Sumantra Ghoshal The Individualized Corporation A
Fundamentally New Approach to Management United States of America Harper Business 1997 New York Harper Perennial 1999
Bass Bernard M Does the Transactional-Transformational Leadership Paradigm Transcend
Organizational and National Boundaries Journal of American Psychologist Volume 52 Number 2 Binghamton State University of New York February 1997
Bass Bernard M Publications Kellogg Leadership Studies Project Transformational
Leadership Working Papers The Ethics of Transformational Leadership The James MacGregor Burns Academy of Leadership Academy of Leadership Press 1997 [On Line] Retrieved from httpwwwacademyumdedupublicationsklspdocstransformational_indexhtm [2005 January 10]
Bass Bernard M Transformational Leadership Industrial Military and Educational Impact
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
Transformational Leadership United States of America Sage Publications Inc 1994 Bass Bernard M Paul Steidlmeier Ethics Character and Authentic Transformational
Leadership Center for leadership Studies School of Management Binghamton University Binghamton NY 1998 [On Line] Available httpEthicsMoralCharacterandAuthenticTraditionalLeadership [2005 January 28]
Bavendam James PhD Effective Management Through Measurement Managing Job
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Becker Brian E Mark A Huselid and Dave Ulrich The HR Scorecard Linking People
Strategy and Performance United States of America Harvard Business School Press 2001
Bennis Warren G On Becoming a Leader The Leadership Classic 2nd ed United States of
America Basic Books 2003
Marlegravene Amelo MBA-Intake-1 2003 page ii MsMFHR Lim A Po Institute
Bennis Warren G Leadership and Management in the Information age A Farewell to Old
Leadership United Arab Emirates The Emirates Center for Strategic Studies and Research 2002
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
Brana ndash Shute Gary Leadership in the Caribbean Working Papers Policy papers on the
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
Brockner Joel Phillis A Siegel Joseph P Daly Martin Christopher Tom Tyler When Trust
Matters the moderating effect of outcome favorability Administrative Science Quarterly September 1997 [On Line] Retrieved from httpwwwfindarticlescomparticles [2005 March 30]
Burns James Macgregor Leadership New York Harper amp Row Publishers Inc 1978 New
York Perennial 1979 Burns James Macgregor Transforming Leadership A New Pursuit of Happiness New York
Atlantic Monthly Press 2003 Byham William Zapp The Lighting of Empowerment How to Improve Productivity Quality
and Employee Satisfaction United States of America Development Dimensions International Publications 1988 Reprint New York Ballantine Publishing Group 1998
Central Intelligence Agency The World Factbook Suriname [On Line] Retrieved from
httpwwwciagovpublicationsfactbookprintsnshtml [2004 August 3] Chowdhury Subir (led by) Next Generation Business Handbook New Strategies from
Tomorrows Leaders Hoboken New Jersey John Wiley amp Sons Inc 2004 Ciancutti Arky MD and Thomas L Steding Built on Trust Gaining Competitive Advantage
in Any Organization Illinois Contemporary Books 2001 Ciulla Joanne B ed Foreword by James MacGregor Burns Ethics The Heart of Leadership
Westport Connecticut London Quorum Books 1998 United States of America Preager 1998
CKC BEM NV Annual reports 1999-2004 Paramaribo 2000-2005
Marlegravene Amelo MBA-Intake-1 2003 page iii MsMFHR Lim A Po Institute
CKC BEM NV Audit reports 1999- 2004 by Ernst amp Young Accountants Paramaribo 2000-
2005 CKC BEM NV PUM Report CKC BEM NV Suriname By M van der Werken Paramaribo
1998 CKC BEM NV Quick Scan Paramaribo July 2001 CKC BEM NV Rapport Betongroep By Werkgroep Betonsector C Kersten amp Co NV
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
Bedrijfsgezondheidszorg Paramaribo 2001 Cone John D and Sharon L Foster Dissertation and Theses from Start to Finish Psychology
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
Competence or Charisma United Arab Emirates The Emirates Center for Strategic Studies and Research 2002
Couto Richard A Publications Kellogg leadership studies project Transformational
Leadership Working Papers Social Capital and Leadership The James MacGregor Burns Academy of Leadership Academy of Leadership Press 1997 [On Line] Retrieved from httpwwwacademyumdedupublicationsklspdocstransformational_indexhtm [2005 April 28]
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
Publishers 1994 [On Line] Retrieved from httpwwwleadingtodayorg [2005 January 27]
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
Studies March 2001 [On Line] Retrieved from httpwwwfindarticlescomparticles [2005 March 30]
Gill Roger Beyond Transformational Leadership Developing Vision Values and Strategy
Research Center for Leadership Studies England [On Line] Retrieved from wwwleadershipcouk [2005 January 28]
Goleman Daniel Richard Boyatzis and Annie McKee Harvard Business Review on
Breakthrough Leadership Primal Leadership The Hidden Driver of great Performance 4th ed Harvard Business School Publishing Corporation United States of America Harvard Business School Press 2001
Goleman Daniel Harvard Business Review on What Makes a Leader Leadership That gets
Results 4th ed Harvard Business School Publishing Corporation United States of America Harvard Business School Press 2001
Goleman Daniel Harvard Business Review on What Makes a Leader What Makes a Leader
4th ed Harvard Business School Publishing Corporation United States of America Harvard Business School Press 2001
Gupta Jatinder N D and Sushil K Sharma Intelligent Enterprises of the 21st Century United
States of America Idea Group Publishing 2004 Handy Charles Stephen Covey Michael Porter CK Prahalad Gary Hamel Michael Hammer
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
Valid Not at all 2 14 41 41 Once in a While 4 27 82 122 Sometimes 12 81 245 367 Fairly often 19 128 388 755 Frequently if not always 12 81 245 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Inspirational Motivation Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 2 14 41 41 Once in a While 2 14 41 82 Sometimes 7 47 143 224 Fairly often 14 95 286 510 Frequently if not always 24 162 490 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 669 Total 148 1000
Total Individualized Consideration Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 1 7 20 20 Once in a While 9 61 184 204 Sometimes 13 88 265 469 Fairly often 18 122 367 837 Frequently if not always 8 54 163 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Contingent Reward Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 3 20 61 61 Once in a While 5 34 102 163 Sometimes 9 61 184 347 Fairly often 15 101 306 653 Frequently if not always 17 115 347 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 6689 Total 148 10000
Total Management by Exception Active Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 4 270 816 816 Once in a While 20 1351 4082 4898 Sometimes 13 878 2653 7551 Fairly often 11 743 2245 9796 Frequently if not always 1 068 204 10000 Total 49 3311 10000
Missing System 99 6689 Total 148 10000
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
Missing System 99 6689 Total 148 10000
Total Extra Effort Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 3 20 61 61 Once in a While 1 7 20 82 Sometimes 14 95 286 367 Fairly often 17 115 347 714 Frequently if not always 14 95 286 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Effectiveness Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 2 14 41 41 Once in a While 6 41 122 163 Sometimes 11 74 224 388 Fairly often 17 115 347 735 Frequently if not always 13 88 265 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Satisfaction Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 3 20 61 61 Once in a While 2 14 41 102 Sometimes 7 47 143 245 Fairly often 18 122 367 612 Frequently if not always 19 128 388 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 669 Total 148 1000
total direct communication
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 1 7 20 20
Neutral 14 95 286 306 Agree 33 223 673 980 Strongly Agree 1 7 20 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
total commitment
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 4 27 82 82
Neutral 21 142 429 510 Agree 16 108 327 837 Strongly Agree 8 54 163 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
total speedy resolution
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 4 27 82 82
Neutral 21 142 429 510 Agree 20 135 408 918 Strongly Agree 4 27 82 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
total responsibility
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 2 14 41 41
Neutral 13 88 265 306 Agree 27 182 551 857 Strongly Agree 7 47 143 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 669 Total 148 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
Valid 0 99 669 669 669 Strongly Disagree 8 54 54 723 Disagree 9 61 61 784 Neutral 5 34 34 818 Agree 6 41 41 858 Strongly Agree 21 142 142 1000 Total 148 1000 1000
Colleagues Frequency Percent Valid Percent Cumulative Percent
Valid 0 99 669 669 669 Strongly Disagree 9 61 61 730 Disagree 5 34 34 764 Neutral 8 54 54 818 Agree 12 81 81 899 Strongly Agree 15 101 101 1000 Total 148 1000 1000
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
Valid 0 99 669 669 669 Strongly Disagree 16 108 108 777 Disagree 11 74 74 851 Neutral 7 47 47 899 Agree 6 41 41 939 Strongly Agree 9 61 61 1000 Total 148 1000 1000
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
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
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
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 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
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 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 2 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 3 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 4 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 5 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 6 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 7 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 8 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 9 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 10 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 11 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 12 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 13 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 14 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 15 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 16 MsMFHR Lim A Po Institute
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
Source Annual Reports CKC BEM 1999-2004
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
Marlegravene Amelo MBA-Intake 1 2003 page 17 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 18 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 19 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 20 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 21 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 22 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 23 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 24 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 25 MsMFHR Lim A Po Institute
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)
Marlegravene Amelo MBA-Intake 1 2003 page 26 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 27 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 28 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 29 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 30 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 31 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 32 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 33 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 34 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 35 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 36 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 37 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 38 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 39 MsMFHR Lim A Po Institute
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
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
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
Marlegravene Amelo MBA-Intake 1 2003 page 40 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 41 MsMFHR Lim A Po Institute
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)
Marlegravene Amelo MBA-Intake 1 2003 page 42 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 43 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 44 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 45 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 46 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 47 MsMFHR Lim A Po Institute
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)
Marlegravene Amelo MBA-Intake 1 2003 page 48 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 49 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 50 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 51 MsMFHR Lim A Po Institute
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
RQ1 What evidence exists that Transformational Leadership influences outcome measures in
organization in an emerging economy This question was assessed using the MLQ
Marlegravene Amelo MBA-Intake 1 2003 page 52 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 53 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 54 MsMFHR Lim A Po Institute
Table 7 Correlation between Transactional Leadership and the Performance Outcomes
Correlation Extra Effort Effectiveness Satisfaction Transactional Leadership 054 057 057
622 Research Question 2
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
Marlegravene Amelo MBA-Intake 1 2003 page 55 MsMFHR Lim A Po Institute
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
6241 Results of Job Satisfaction
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
Marlegravene Amelo MBA-Intake 1 2003 page 56 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 57 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 58 MsMFHR Lim A Po Institute
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
commitment to treat employees in a sensitive and considerate manner They expressed trust in
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
Marlegravene Amelo MBA-Intake 1 2003 page 59 MsMFHR Lim A Po Institute
CHAPTER SEVEN
7 CONCLUSIONS AND PRACTICAL IMPLEMENTATION
71 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 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
Marlegravene Amelo MBA-Intake 1 2003 page 60 MsMFHR Lim A Po Institute
73 Summary and Conclusions
The objectives of the study were
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
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
Marlegravene Amelo MBA-Intake 1 2003 page 61 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 62 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 63 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 64 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 65 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 66 MsMFHR Lim A Po Institute
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
7613 Incentive Program
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
Marlegravene Amelo MBA-Intake 1 2003 page 67 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 68 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 69 MsMFHR Lim A Po Institute
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Marlegravene Amelo MBA-Intake-1 2003 page i MsMFHR Lim A Po Institute
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Bass Bernard M Does the Transactional-Transformational Leadership Paradigm Transcend
Organizational and National Boundaries Journal of American Psychologist Volume 52 Number 2 Binghamton State University of New York February 1997
Bass Bernard M Publications Kellogg Leadership Studies Project Transformational
Leadership Working Papers The Ethics of Transformational Leadership The James MacGregor Burns Academy of Leadership Academy of Leadership Press 1997 [On Line] Retrieved from httpwwwacademyumdedupublicationsklspdocstransformational_indexhtm [2005 January 10]
Bass Bernard M Transformational Leadership Industrial Military and Educational Impact
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
Transformational Leadership United States of America Sage Publications Inc 1994 Bass Bernard M Paul Steidlmeier Ethics Character and Authentic Transformational
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Becker Brian E Mark A Huselid and Dave Ulrich The HR Scorecard Linking People
Strategy and Performance United States of America Harvard Business School Press 2001
Bennis Warren G On Becoming a Leader The Leadership Classic 2nd ed United States of
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Marlegravene Amelo MBA-Intake-1 2003 page ii MsMFHR Lim A Po Institute
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Leadership United Arab Emirates The Emirates Center for Strategic Studies and Research 2002
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
Brana ndash Shute Gary Leadership in the Caribbean Working Papers Policy papers on the
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Brockner Joel Phillis A Siegel Joseph P Daly Martin Christopher Tom Tyler When Trust
Matters the moderating effect of outcome favorability Administrative Science Quarterly September 1997 [On Line] Retrieved from httpwwwfindarticlescomparticles [2005 March 30]
Burns James Macgregor Leadership New York Harper amp Row Publishers Inc 1978 New
York Perennial 1979 Burns James Macgregor Transforming Leadership A New Pursuit of Happiness New York
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and Employee Satisfaction United States of America Development Dimensions International Publications 1988 Reprint New York Ballantine Publishing Group 1998
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Tomorrows Leaders Hoboken New Jersey John Wiley amp Sons Inc 2004 Ciancutti Arky MD and Thomas L Steding Built on Trust Gaining Competitive Advantage
in Any Organization Illinois Contemporary Books 2001 Ciulla Joanne B ed Foreword by James MacGregor Burns Ethics The Heart of Leadership
Westport Connecticut London Quorum Books 1998 United States of America Preager 1998
CKC BEM NV Annual reports 1999-2004 Paramaribo 2000-2005
Marlegravene Amelo MBA-Intake-1 2003 page iii MsMFHR Lim A Po Institute
CKC BEM NV Audit reports 1999- 2004 by Ernst amp Young Accountants Paramaribo 2000-
2005 CKC BEM NV PUM Report CKC BEM NV Suriname By M van der Werken Paramaribo
1998 CKC BEM NV Quick Scan Paramaribo July 2001 CKC BEM NV Rapport Betongroep By Werkgroep Betonsector C Kersten amp Co NV
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
Bedrijfsgezondheidszorg Paramaribo 2001 Cone John D and Sharon L Foster Dissertation and Theses from Start to Finish Psychology
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
Competence or Charisma United Arab Emirates The Emirates Center for Strategic Studies and Research 2002
Couto Richard A Publications Kellogg leadership studies project Transformational
Leadership Working Papers Social Capital and Leadership The James MacGregor Burns Academy of Leadership Academy of Leadership Press 1997 [On Line] Retrieved from httpwwwacademyumdedupublicationsklspdocstransformational_indexhtm [2005 April 28]
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
Publishers 1994 [On Line] Retrieved from httpwwwleadingtodayorg [2005 January 27]
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
Studies March 2001 [On Line] Retrieved from httpwwwfindarticlescomparticles [2005 March 30]
Gill Roger Beyond Transformational Leadership Developing Vision Values and Strategy
Research Center for Leadership Studies England [On Line] Retrieved from wwwleadershipcouk [2005 January 28]
Goleman Daniel Richard Boyatzis and Annie McKee Harvard Business Review on
Breakthrough Leadership Primal Leadership The Hidden Driver of great Performance 4th ed Harvard Business School Publishing Corporation United States of America Harvard Business School Press 2001
Goleman Daniel Harvard Business Review on What Makes a Leader Leadership That gets
Results 4th ed Harvard Business School Publishing Corporation United States of America Harvard Business School Press 2001
Goleman Daniel Harvard Business Review on What Makes a Leader What Makes a Leader
4th ed Harvard Business School Publishing Corporation United States of America Harvard Business School Press 2001
Gupta Jatinder N D and Sushil K Sharma Intelligent Enterprises of the 21st Century United
States of America Idea Group Publishing 2004 Handy Charles Stephen Covey Michael Porter CK Prahalad Gary Hamel Michael Hammer
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
Valid Not at all 2 14 41 41 Once in a While 4 27 82 122 Sometimes 12 81 245 367 Fairly often 19 128 388 755 Frequently if not always 12 81 245 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Inspirational Motivation Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 2 14 41 41 Once in a While 2 14 41 82 Sometimes 7 47 143 224 Fairly often 14 95 286 510 Frequently if not always 24 162 490 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 669 Total 148 1000
Total Individualized Consideration Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 1 7 20 20 Once in a While 9 61 184 204 Sometimes 13 88 265 469 Fairly often 18 122 367 837 Frequently if not always 8 54 163 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Contingent Reward Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 3 20 61 61 Once in a While 5 34 102 163 Sometimes 9 61 184 347 Fairly often 15 101 306 653 Frequently if not always 17 115 347 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 6689 Total 148 10000
Total Management by Exception Active Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 4 270 816 816 Once in a While 20 1351 4082 4898 Sometimes 13 878 2653 7551 Fairly often 11 743 2245 9796 Frequently if not always 1 068 204 10000 Total 49 3311 10000
Missing System 99 6689 Total 148 10000
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
Missing System 99 6689 Total 148 10000
Total Extra Effort Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 3 20 61 61 Once in a While 1 7 20 82 Sometimes 14 95 286 367 Fairly often 17 115 347 714 Frequently if not always 14 95 286 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Effectiveness Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 2 14 41 41 Once in a While 6 41 122 163 Sometimes 11 74 224 388 Fairly often 17 115 347 735 Frequently if not always 13 88 265 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Satisfaction Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 3 20 61 61 Once in a While 2 14 41 102 Sometimes 7 47 143 245 Fairly often 18 122 367 612 Frequently if not always 19 128 388 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 669 Total 148 1000
total direct communication
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 1 7 20 20
Neutral 14 95 286 306 Agree 33 223 673 980 Strongly Agree 1 7 20 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
total commitment
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 4 27 82 82
Neutral 21 142 429 510 Agree 16 108 327 837 Strongly Agree 8 54 163 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
total speedy resolution
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 4 27 82 82
Neutral 21 142 429 510 Agree 20 135 408 918 Strongly Agree 4 27 82 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
total responsibility
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 2 14 41 41
Neutral 13 88 265 306 Agree 27 182 551 857 Strongly Agree 7 47 143 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 669 Total 148 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
Valid 0 99 669 669 669 Strongly Disagree 8 54 54 723 Disagree 9 61 61 784 Neutral 5 34 34 818 Agree 6 41 41 858 Strongly Agree 21 142 142 1000 Total 148 1000 1000
Colleagues Frequency Percent Valid Percent Cumulative Percent
Valid 0 99 669 669 669 Strongly Disagree 9 61 61 730 Disagree 5 34 34 764 Neutral 8 54 54 818 Agree 12 81 81 899 Strongly Agree 15 101 101 1000 Total 148 1000 1000
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
Valid 0 99 669 669 669 Strongly Disagree 16 108 108 777 Disagree 11 74 74 851 Neutral 7 47 47 899 Agree 6 41 41 939 Strongly Agree 9 61 61 1000 Total 148 1000 1000
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
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
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
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 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
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 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 2 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 3 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 4 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 5 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 6 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 7 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 8 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 9 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 10 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 11 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 12 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 13 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 14 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 15 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 16 MsMFHR Lim A Po Institute
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
Source Annual Reports CKC BEM 1999-2004
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
Marlegravene Amelo MBA-Intake 1 2003 page 17 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 18 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 19 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 20 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 21 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 22 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 23 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 24 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 25 MsMFHR Lim A Po Institute
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)
Marlegravene Amelo MBA-Intake 1 2003 page 26 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 27 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 28 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 29 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 30 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 31 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 32 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 33 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 34 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 35 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 36 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 37 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 38 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 39 MsMFHR Lim A Po Institute
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
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
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
Marlegravene Amelo MBA-Intake 1 2003 page 40 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 41 MsMFHR Lim A Po Institute
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)
Marlegravene Amelo MBA-Intake 1 2003 page 42 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 43 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 44 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 45 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 46 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 47 MsMFHR Lim A Po Institute
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)
Marlegravene Amelo MBA-Intake 1 2003 page 48 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 49 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 50 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 51 MsMFHR Lim A Po Institute
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
RQ1 What evidence exists that Transformational Leadership influences outcome measures in
organization in an emerging economy This question was assessed using the MLQ
Marlegravene Amelo MBA-Intake 1 2003 page 52 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 53 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 54 MsMFHR Lim A Po Institute
Table 7 Correlation between Transactional Leadership and the Performance Outcomes
Correlation Extra Effort Effectiveness Satisfaction Transactional Leadership 054 057 057
622 Research Question 2
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
Marlegravene Amelo MBA-Intake 1 2003 page 55 MsMFHR Lim A Po Institute
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
6241 Results of Job Satisfaction
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
Marlegravene Amelo MBA-Intake 1 2003 page 56 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 57 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 58 MsMFHR Lim A Po Institute
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
commitment to treat employees in a sensitive and considerate manner They expressed trust in
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
Marlegravene Amelo MBA-Intake 1 2003 page 59 MsMFHR Lim A Po Institute
CHAPTER SEVEN
7 CONCLUSIONS AND PRACTICAL IMPLEMENTATION
71 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 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
Marlegravene Amelo MBA-Intake 1 2003 page 60 MsMFHR Lim A Po Institute
73 Summary and Conclusions
The objectives of the study were
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
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
Marlegravene Amelo MBA-Intake 1 2003 page 61 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 62 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 63 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 64 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 65 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 66 MsMFHR Lim A Po Institute
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
7613 Incentive Program
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
Marlegravene Amelo MBA-Intake 1 2003 page 67 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 68 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 69 MsMFHR Lim A Po Institute
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of America Mc Graw Hill 2004 Avolio Bruce J Publications Kellogg Leadership Studies Project Transformational
Leadership Working Papers The Great Leadership Migration to a Full Range Leadership Development System The James MacGregor Burns Academy of Leadership Academy of Leadership Press 1997 [On Line] Retrieved from httpwwwacademyumdedupublicationsklspdocstransformational_indexhtm [2005 January 10]
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Marlegravene Amelo MBA-Intake-1 2003 page i MsMFHR Lim A Po Institute
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Bass Bernard M Does the Transactional-Transformational Leadership Paradigm Transcend
Organizational and National Boundaries Journal of American Psychologist Volume 52 Number 2 Binghamton State University of New York February 1997
Bass Bernard M Publications Kellogg Leadership Studies Project Transformational
Leadership Working Papers The Ethics of Transformational Leadership The James MacGregor Burns Academy of Leadership Academy of Leadership Press 1997 [On Line] Retrieved from httpwwwacademyumdedupublicationsklspdocstransformational_indexhtm [2005 January 10]
Bass Bernard M Transformational Leadership Industrial Military and Educational Impact
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
Transformational Leadership United States of America Sage Publications Inc 1994 Bass Bernard M Paul Steidlmeier Ethics Character and Authentic Transformational
Leadership Center for leadership Studies School of Management Binghamton University Binghamton NY 1998 [On Line] Available httpEthicsMoralCharacterandAuthenticTraditionalLeadership [2005 January 28]
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Becker Brian E Mark A Huselid and Dave Ulrich The HR Scorecard Linking People
Strategy and Performance United States of America Harvard Business School Press 2001
Bennis Warren G On Becoming a Leader The Leadership Classic 2nd ed United States of
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Marlegravene Amelo MBA-Intake-1 2003 page ii MsMFHR Lim A Po Institute
Bennis Warren G Leadership and Management in the Information age A Farewell to Old
Leadership United Arab Emirates The Emirates Center for Strategic Studies and Research 2002
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
Brana ndash Shute Gary Leadership in the Caribbean Working Papers Policy papers on the
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
Brockner Joel Phillis A Siegel Joseph P Daly Martin Christopher Tom Tyler When Trust
Matters the moderating effect of outcome favorability Administrative Science Quarterly September 1997 [On Line] Retrieved from httpwwwfindarticlescomparticles [2005 March 30]
Burns James Macgregor Leadership New York Harper amp Row Publishers Inc 1978 New
York Perennial 1979 Burns James Macgregor Transforming Leadership A New Pursuit of Happiness New York
Atlantic Monthly Press 2003 Byham William Zapp The Lighting of Empowerment How to Improve Productivity Quality
and Employee Satisfaction United States of America Development Dimensions International Publications 1988 Reprint New York Ballantine Publishing Group 1998
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Tomorrows Leaders Hoboken New Jersey John Wiley amp Sons Inc 2004 Ciancutti Arky MD and Thomas L Steding Built on Trust Gaining Competitive Advantage
in Any Organization Illinois Contemporary Books 2001 Ciulla Joanne B ed Foreword by James MacGregor Burns Ethics The Heart of Leadership
Westport Connecticut London Quorum Books 1998 United States of America Preager 1998
CKC BEM NV Annual reports 1999-2004 Paramaribo 2000-2005
Marlegravene Amelo MBA-Intake-1 2003 page iii MsMFHR Lim A Po Institute
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2005 CKC BEM NV PUM Report CKC BEM NV Suriname By M van der Werken Paramaribo
1998 CKC BEM NV Quick Scan Paramaribo July 2001 CKC BEM NV Rapport Betongroep By Werkgroep Betonsector C Kersten amp Co NV
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
Bedrijfsgezondheidszorg Paramaribo 2001 Cone John D and Sharon L Foster Dissertation and Theses from Start to Finish Psychology
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
Competence or Charisma United Arab Emirates The Emirates Center for Strategic Studies and Research 2002
Couto Richard A Publications Kellogg leadership studies project Transformational
Leadership Working Papers Social Capital and Leadership The James MacGregor Burns Academy of Leadership Academy of Leadership Press 1997 [On Line] Retrieved from httpwwwacademyumdedupublicationsklspdocstransformational_indexhtm [2005 April 28]
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
Publishers 1994 [On Line] Retrieved from httpwwwleadingtodayorg [2005 January 27]
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
Studies March 2001 [On Line] Retrieved from httpwwwfindarticlescomparticles [2005 March 30]
Gill Roger Beyond Transformational Leadership Developing Vision Values and Strategy
Research Center for Leadership Studies England [On Line] Retrieved from wwwleadershipcouk [2005 January 28]
Goleman Daniel Richard Boyatzis and Annie McKee Harvard Business Review on
Breakthrough Leadership Primal Leadership The Hidden Driver of great Performance 4th ed Harvard Business School Publishing Corporation United States of America Harvard Business School Press 2001
Goleman Daniel Harvard Business Review on What Makes a Leader Leadership That gets
Results 4th ed Harvard Business School Publishing Corporation United States of America Harvard Business School Press 2001
Goleman Daniel Harvard Business Review on What Makes a Leader What Makes a Leader
4th ed Harvard Business School Publishing Corporation United States of America Harvard Business School Press 2001
Gupta Jatinder N D and Sushil K Sharma Intelligent Enterprises of the 21st Century United
States of America Idea Group Publishing 2004 Handy Charles Stephen Covey Michael Porter CK Prahalad Gary Hamel Michael Hammer
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
Valid Not at all 2 14 41 41 Once in a While 4 27 82 122 Sometimes 12 81 245 367 Fairly often 19 128 388 755 Frequently if not always 12 81 245 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Inspirational Motivation Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 2 14 41 41 Once in a While 2 14 41 82 Sometimes 7 47 143 224 Fairly often 14 95 286 510 Frequently if not always 24 162 490 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 669 Total 148 1000
Total Individualized Consideration Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 1 7 20 20 Once in a While 9 61 184 204 Sometimes 13 88 265 469 Fairly often 18 122 367 837 Frequently if not always 8 54 163 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Contingent Reward Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 3 20 61 61 Once in a While 5 34 102 163 Sometimes 9 61 184 347 Fairly often 15 101 306 653 Frequently if not always 17 115 347 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 6689 Total 148 10000
Total Management by Exception Active Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 4 270 816 816 Once in a While 20 1351 4082 4898 Sometimes 13 878 2653 7551 Fairly often 11 743 2245 9796 Frequently if not always 1 068 204 10000 Total 49 3311 10000
Missing System 99 6689 Total 148 10000
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
Missing System 99 6689 Total 148 10000
Total Extra Effort Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 3 20 61 61 Once in a While 1 7 20 82 Sometimes 14 95 286 367 Fairly often 17 115 347 714 Frequently if not always 14 95 286 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Effectiveness Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 2 14 41 41 Once in a While 6 41 122 163 Sometimes 11 74 224 388 Fairly often 17 115 347 735 Frequently if not always 13 88 265 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Satisfaction Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 3 20 61 61 Once in a While 2 14 41 102 Sometimes 7 47 143 245 Fairly often 18 122 367 612 Frequently if not always 19 128 388 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 669 Total 148 1000
total direct communication
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 1 7 20 20
Neutral 14 95 286 306 Agree 33 223 673 980 Strongly Agree 1 7 20 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
total commitment
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 4 27 82 82
Neutral 21 142 429 510 Agree 16 108 327 837 Strongly Agree 8 54 163 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
total speedy resolution
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 4 27 82 82
Neutral 21 142 429 510 Agree 20 135 408 918 Strongly Agree 4 27 82 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
total responsibility
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 2 14 41 41
Neutral 13 88 265 306 Agree 27 182 551 857 Strongly Agree 7 47 143 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 669 Total 148 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
Valid 0 99 669 669 669 Strongly Disagree 8 54 54 723 Disagree 9 61 61 784 Neutral 5 34 34 818 Agree 6 41 41 858 Strongly Agree 21 142 142 1000 Total 148 1000 1000
Colleagues Frequency Percent Valid Percent Cumulative Percent
Valid 0 99 669 669 669 Strongly Disagree 9 61 61 730 Disagree 5 34 34 764 Neutral 8 54 54 818 Agree 12 81 81 899 Strongly Agree 15 101 101 1000 Total 148 1000 1000
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
Valid 0 99 669 669 669 Strongly Disagree 16 108 108 777 Disagree 11 74 74 851 Neutral 7 47 47 899 Agree 6 41 41 939 Strongly Agree 9 61 61 1000 Total 148 1000 1000
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
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
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
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 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
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 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 2 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 3 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 4 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 5 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 6 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 7 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 8 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 9 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 10 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 11 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 12 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 13 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 14 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 15 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 16 MsMFHR Lim A Po Institute
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
Source Annual Reports CKC BEM 1999-2004
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
Marlegravene Amelo MBA-Intake 1 2003 page 17 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 18 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 19 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 20 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 21 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 22 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 23 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 24 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 25 MsMFHR Lim A Po Institute
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)
Marlegravene Amelo MBA-Intake 1 2003 page 26 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 27 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 28 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 29 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 30 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 31 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 32 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 33 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 34 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 35 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 36 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 37 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 38 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 39 MsMFHR Lim A Po Institute
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
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
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
Marlegravene Amelo MBA-Intake 1 2003 page 40 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 41 MsMFHR Lim A Po Institute
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)
Marlegravene Amelo MBA-Intake 1 2003 page 42 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 43 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 44 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 45 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 46 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 47 MsMFHR Lim A Po Institute
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)
Marlegravene Amelo MBA-Intake 1 2003 page 48 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 49 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 50 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 51 MsMFHR Lim A Po Institute
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
RQ1 What evidence exists that Transformational Leadership influences outcome measures in
organization in an emerging economy This question was assessed using the MLQ
Marlegravene Amelo MBA-Intake 1 2003 page 52 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 53 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 54 MsMFHR Lim A Po Institute
Table 7 Correlation between Transactional Leadership and the Performance Outcomes
Correlation Extra Effort Effectiveness Satisfaction Transactional Leadership 054 057 057
622 Research Question 2
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
Marlegravene Amelo MBA-Intake 1 2003 page 55 MsMFHR Lim A Po Institute
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
6241 Results of Job Satisfaction
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
Marlegravene Amelo MBA-Intake 1 2003 page 56 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 57 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 58 MsMFHR Lim A Po Institute
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
commitment to treat employees in a sensitive and considerate manner They expressed trust in
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
Marlegravene Amelo MBA-Intake 1 2003 page 59 MsMFHR Lim A Po Institute
CHAPTER SEVEN
7 CONCLUSIONS AND PRACTICAL IMPLEMENTATION
71 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 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
Marlegravene Amelo MBA-Intake 1 2003 page 60 MsMFHR Lim A Po Institute
73 Summary and Conclusions
The objectives of the study were
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
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
Marlegravene Amelo MBA-Intake 1 2003 page 61 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 62 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 63 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 64 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 65 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 66 MsMFHR Lim A Po Institute
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
7613 Incentive Program
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
Marlegravene Amelo MBA-Intake 1 2003 page 67 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 68 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 69 MsMFHR Lim A Po Institute
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Avolio Bruce J and Bernard M Bass Multifactor Leadership Questionnaire 3rd ed Manual
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Marlegravene Amelo MBA-Intake-1 2003 page i MsMFHR Lim A Po Institute
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Bass Bernard M Does the Transactional-Transformational Leadership Paradigm Transcend
Organizational and National Boundaries Journal of American Psychologist Volume 52 Number 2 Binghamton State University of New York February 1997
Bass Bernard M Publications Kellogg Leadership Studies Project Transformational
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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
Transformational Leadership United States of America Sage Publications Inc 1994 Bass Bernard M Paul Steidlmeier Ethics Character and Authentic Transformational
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Leadership United Arab Emirates The Emirates Center for Strategic Studies and Research 2002
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
Brana ndash Shute Gary Leadership in the Caribbean Working Papers Policy papers on the
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Brockner Joel Phillis A Siegel Joseph P Daly Martin Christopher Tom Tyler When Trust
Matters the moderating effect of outcome favorability Administrative Science Quarterly September 1997 [On Line] Retrieved from httpwwwfindarticlescomparticles [2005 March 30]
Burns James Macgregor Leadership New York Harper amp Row Publishers Inc 1978 New
York Perennial 1979 Burns James Macgregor Transforming Leadership A New Pursuit of Happiness New York
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Marlegravene Amelo MBA-Intake-1 2003 page iii MsMFHR Lim A Po Institute
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1998 CKC BEM NV Quick Scan Paramaribo July 2001 CKC BEM NV Rapport Betongroep By Werkgroep Betonsector C Kersten amp Co NV
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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
Bedrijfsgezondheidszorg Paramaribo 2001 Cone John D and Sharon L Foster Dissertation and Theses from Start to Finish Psychology
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
Competence or Charisma United Arab Emirates The Emirates Center for Strategic Studies and Research 2002
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
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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
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Garsten Christina and Chris Grey Trust Control and Post-bureaucracy Organizational
Studies March 2001 [On Line] Retrieved from httpwwwfindarticlescomparticles [2005 March 30]
Gill Roger Beyond Transformational Leadership Developing Vision Values and Strategy
Research Center for Leadership Studies England [On Line] Retrieved from wwwleadershipcouk [2005 January 28]
Goleman Daniel Richard Boyatzis and Annie McKee Harvard Business Review on
Breakthrough Leadership Primal Leadership The Hidden Driver of great Performance 4th ed Harvard Business School Publishing Corporation United States of America Harvard Business School Press 2001
Goleman Daniel Harvard Business Review on What Makes a Leader Leadership That gets
Results 4th ed Harvard Business School Publishing Corporation United States of America Harvard Business School Press 2001
Goleman Daniel Harvard Business Review on What Makes a Leader What Makes a Leader
4th ed Harvard Business School Publishing Corporation United States of America Harvard Business School Press 2001
Gupta Jatinder N D and Sushil K Sharma Intelligent Enterprises of the 21st Century United
States of America Idea Group Publishing 2004 Handy Charles Stephen Covey Michael Porter CK Prahalad Gary Hamel Michael Hammer
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
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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
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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
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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
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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
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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
Valid Not at all 2 14 41 41 Once in a While 4 27 82 122 Sometimes 12 81 245 367 Fairly often 19 128 388 755 Frequently if not always 12 81 245 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Inspirational Motivation Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 2 14 41 41 Once in a While 2 14 41 82 Sometimes 7 47 143 224 Fairly often 14 95 286 510 Frequently if not always 24 162 490 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 669 Total 148 1000
Total Individualized Consideration Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 1 7 20 20 Once in a While 9 61 184 204 Sometimes 13 88 265 469 Fairly often 18 122 367 837 Frequently if not always 8 54 163 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Contingent Reward Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 3 20 61 61 Once in a While 5 34 102 163 Sometimes 9 61 184 347 Fairly often 15 101 306 653 Frequently if not always 17 115 347 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 6689 Total 148 10000
Total Management by Exception Active Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 4 270 816 816 Once in a While 20 1351 4082 4898 Sometimes 13 878 2653 7551 Fairly often 11 743 2245 9796 Frequently if not always 1 068 204 10000 Total 49 3311 10000
Missing System 99 6689 Total 148 10000
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
Missing System 99 6689 Total 148 10000
Total Extra Effort Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 3 20 61 61 Once in a While 1 7 20 82 Sometimes 14 95 286 367 Fairly often 17 115 347 714 Frequently if not always 14 95 286 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Effectiveness Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 2 14 41 41 Once in a While 6 41 122 163 Sometimes 11 74 224 388 Fairly often 17 115 347 735 Frequently if not always 13 88 265 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Satisfaction Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 3 20 61 61 Once in a While 2 14 41 102 Sometimes 7 47 143 245 Fairly often 18 122 367 612 Frequently if not always 19 128 388 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 669 Total 148 1000
total direct communication
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 1 7 20 20
Neutral 14 95 286 306 Agree 33 223 673 980 Strongly Agree 1 7 20 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
total commitment
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 4 27 82 82
Neutral 21 142 429 510 Agree 16 108 327 837 Strongly Agree 8 54 163 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
total speedy resolution
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 4 27 82 82
Neutral 21 142 429 510 Agree 20 135 408 918 Strongly Agree 4 27 82 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
total responsibility
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 2 14 41 41
Neutral 13 88 265 306 Agree 27 182 551 857 Strongly Agree 7 47 143 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 669 Total 148 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
Valid 0 99 669 669 669 Strongly Disagree 8 54 54 723 Disagree 9 61 61 784 Neutral 5 34 34 818 Agree 6 41 41 858 Strongly Agree 21 142 142 1000 Total 148 1000 1000
Colleagues Frequency Percent Valid Percent Cumulative Percent
Valid 0 99 669 669 669 Strongly Disagree 9 61 61 730 Disagree 5 34 34 764 Neutral 8 54 54 818 Agree 12 81 81 899 Strongly Agree 15 101 101 1000 Total 148 1000 1000
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
Valid 0 99 669 669 669 Strongly Disagree 16 108 108 777 Disagree 11 74 74 851 Neutral 7 47 47 899 Agree 6 41 41 939 Strongly Agree 9 61 61 1000 Total 148 1000 1000
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
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
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
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 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
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
Marlegravene Amelo MBA-Intake 1 2003 page 2 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 3 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 4 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 5 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 6 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 7 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 8 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 9 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 10 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 11 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 12 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 13 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 14 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 15 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 16 MsMFHR Lim A Po Institute
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
Source Annual Reports CKC BEM 1999-2004
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
Marlegravene Amelo MBA-Intake 1 2003 page 17 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 18 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 19 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 20 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 21 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 22 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 23 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 24 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 25 MsMFHR Lim A Po Institute
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)
Marlegravene Amelo MBA-Intake 1 2003 page 26 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 27 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 28 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 29 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 30 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 31 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 32 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 33 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 34 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 35 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 36 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 37 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 38 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 39 MsMFHR Lim A Po Institute
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
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
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
Marlegravene Amelo MBA-Intake 1 2003 page 40 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 41 MsMFHR Lim A Po Institute
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)
Marlegravene Amelo MBA-Intake 1 2003 page 42 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 43 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 44 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 45 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 46 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 47 MsMFHR Lim A Po Institute
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)
Marlegravene Amelo MBA-Intake 1 2003 page 48 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 49 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 50 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 51 MsMFHR Lim A Po Institute
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
RQ1 What evidence exists that Transformational Leadership influences outcome measures in
organization in an emerging economy This question was assessed using the MLQ
Marlegravene Amelo MBA-Intake 1 2003 page 52 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 53 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 54 MsMFHR Lim A Po Institute
Table 7 Correlation between Transactional Leadership and the Performance Outcomes
Correlation Extra Effort Effectiveness Satisfaction Transactional Leadership 054 057 057
622 Research Question 2
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
Marlegravene Amelo MBA-Intake 1 2003 page 55 MsMFHR Lim A Po Institute
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
6241 Results of Job Satisfaction
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
Marlegravene Amelo MBA-Intake 1 2003 page 56 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 57 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 58 MsMFHR Lim A Po Institute
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
commitment to treat employees in a sensitive and considerate manner They expressed trust in
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
Marlegravene Amelo MBA-Intake 1 2003 page 59 MsMFHR Lim A Po Institute
CHAPTER SEVEN
7 CONCLUSIONS AND PRACTICAL IMPLEMENTATION
71 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 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
Marlegravene Amelo MBA-Intake 1 2003 page 60 MsMFHR Lim A Po Institute
73 Summary and Conclusions
The objectives of the study were
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
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
Marlegravene Amelo MBA-Intake 1 2003 page 61 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 62 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 63 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 64 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 65 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 66 MsMFHR Lim A Po Institute
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
7613 Incentive Program
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
Marlegravene Amelo MBA-Intake 1 2003 page 67 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 68 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 69 MsMFHR Lim A Po Institute
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Al-Suwaidi Jamal S Leadership and Management in the Information age An Overview United
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of America Mc Graw Hill 2004 Avolio Bruce J Publications Kellogg Leadership Studies Project Transformational
Leadership Working Papers The Great Leadership Migration to a Full Range Leadership Development System The James MacGregor Burns Academy of Leadership Academy of Leadership Press 1997 [On Line] Retrieved from httpwwwacademyumdedupublicationsklspdocstransformational_indexhtm [2005 January 10]
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Thousand Oaks California Sage Publications Inc 1999 Avolio Bruce J and Bernard M Bass ed Developing Potential Across a Full Range of
Leadership Tm Cases on Traditional and Transformational Leadership Mahwah New Jersey Laurence Erlbaum Associates 2002
Avolio Bruce J and Bernard M Bass Multifactor Leadership Questionnaire 3rd ed Manual
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Vol 2 Transformational and Charismatic Leadership The Road Ahead Kidlington Oxford UK Elsevier Science Ltd 2002
Ballenger K Eric Corporate Leaders Must Change Their Focus to Restore Public Confidence
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What is a Global Manager 7th ed President and Fellows of Harvard College United States of America Harvard Business School Press 1994
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Marlegravene Amelo MBA-Intake-1 2003 page i MsMFHR Lim A Po Institute
Bartlett Christopher A and Sumantra Ghoshal The Individualized Corporation A
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Bass Bernard M Does the Transactional-Transformational Leadership Paradigm Transcend
Organizational and National Boundaries Journal of American Psychologist Volume 52 Number 2 Binghamton State University of New York February 1997
Bass Bernard M Publications Kellogg Leadership Studies Project Transformational
Leadership Working Papers The Ethics of Transformational Leadership The James MacGregor Burns Academy of Leadership Academy of Leadership Press 1997 [On Line] Retrieved from httpwwwacademyumdedupublicationsklspdocstransformational_indexhtm [2005 January 10]
Bass Bernard M Transformational Leadership Industrial Military and Educational Impact
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
Transformational Leadership United States of America Sage Publications Inc 1994 Bass Bernard M Paul Steidlmeier Ethics Character and Authentic Transformational
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Becker Brian E Mark A Huselid and Dave Ulrich The HR Scorecard Linking People
Strategy and Performance United States of America Harvard Business School Press 2001
Bennis Warren G On Becoming a Leader The Leadership Classic 2nd ed United States of
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Marlegravene Amelo MBA-Intake-1 2003 page ii MsMFHR Lim A Po Institute
Bennis Warren G Leadership and Management in the Information age A Farewell to Old
Leadership United Arab Emirates The Emirates Center for Strategic Studies and Research 2002
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
Brana ndash Shute Gary Leadership in the Caribbean Working Papers Policy papers on the
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
Brockner Joel Phillis A Siegel Joseph P Daly Martin Christopher Tom Tyler When Trust
Matters the moderating effect of outcome favorability Administrative Science Quarterly September 1997 [On Line] Retrieved from httpwwwfindarticlescomparticles [2005 March 30]
Burns James Macgregor Leadership New York Harper amp Row Publishers Inc 1978 New
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
Marlegravene Amelo MBA-Intake-1 2003 page iii MsMFHR Lim A Po Institute
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1998 CKC BEM NV Quick Scan Paramaribo July 2001 CKC BEM NV Rapport Betongroep By Werkgroep Betonsector C Kersten amp Co NV
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
Bedrijfsgezondheidszorg Paramaribo 2001 Cone John D and Sharon L Foster Dissertation and Theses from Start to Finish Psychology
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
Competence or Charisma United Arab Emirates The Emirates Center for Strategic Studies and Research 2002
Couto Richard A Publications Kellogg leadership studies project Transformational
Leadership Working Papers Social Capital and Leadership The James MacGregor Burns Academy of Leadership Academy of Leadership Press 1997 [On Line] Retrieved from httpwwwacademyumdedupublicationsklspdocstransformational_indexhtm [2005 April 28]
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
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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
Publishers 1994 [On Line] Retrieved from httpwwwleadingtodayorg [2005 January 27]
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
Studies March 2001 [On Line] Retrieved from httpwwwfindarticlescomparticles [2005 March 30]
Gill Roger Beyond Transformational Leadership Developing Vision Values and Strategy
Research Center for Leadership Studies England [On Line] Retrieved from wwwleadershipcouk [2005 January 28]
Goleman Daniel Richard Boyatzis and Annie McKee Harvard Business Review on
Breakthrough Leadership Primal Leadership The Hidden Driver of great Performance 4th ed Harvard Business School Publishing Corporation United States of America Harvard Business School Press 2001
Goleman Daniel Harvard Business Review on What Makes a Leader Leadership That gets
Results 4th ed Harvard Business School Publishing Corporation United States of America Harvard Business School Press 2001
Goleman Daniel Harvard Business Review on What Makes a Leader What Makes a Leader
4th ed Harvard Business School Publishing Corporation United States of America Harvard Business School Press 2001
Gupta Jatinder N D and Sushil K Sharma Intelligent Enterprises of the 21st Century United
States of America Idea Group Publishing 2004 Handy Charles Stephen Covey Michael Porter CK Prahalad Gary Hamel Michael Hammer
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
Valid Not at all 2 14 41 41 Once in a While 4 27 82 122 Sometimes 12 81 245 367 Fairly often 19 128 388 755 Frequently if not always 12 81 245 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Inspirational Motivation Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 2 14 41 41 Once in a While 2 14 41 82 Sometimes 7 47 143 224 Fairly often 14 95 286 510 Frequently if not always 24 162 490 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 669 Total 148 1000
Total Individualized Consideration Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 1 7 20 20 Once in a While 9 61 184 204 Sometimes 13 88 265 469 Fairly often 18 122 367 837 Frequently if not always 8 54 163 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Contingent Reward Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 3 20 61 61 Once in a While 5 34 102 163 Sometimes 9 61 184 347 Fairly often 15 101 306 653 Frequently if not always 17 115 347 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 6689 Total 148 10000
Total Management by Exception Active Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 4 270 816 816 Once in a While 20 1351 4082 4898 Sometimes 13 878 2653 7551 Fairly often 11 743 2245 9796 Frequently if not always 1 068 204 10000 Total 49 3311 10000
Missing System 99 6689 Total 148 10000
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
Missing System 99 6689 Total 148 10000
Total Extra Effort Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 3 20 61 61 Once in a While 1 7 20 82 Sometimes 14 95 286 367 Fairly often 17 115 347 714 Frequently if not always 14 95 286 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Effectiveness Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 2 14 41 41 Once in a While 6 41 122 163 Sometimes 11 74 224 388 Fairly often 17 115 347 735 Frequently if not always 13 88 265 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Satisfaction Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 3 20 61 61 Once in a While 2 14 41 102 Sometimes 7 47 143 245 Fairly often 18 122 367 612 Frequently if not always 19 128 388 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 669 Total 148 1000
total direct communication
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 1 7 20 20
Neutral 14 95 286 306 Agree 33 223 673 980 Strongly Agree 1 7 20 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
total commitment
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 4 27 82 82
Neutral 21 142 429 510 Agree 16 108 327 837 Strongly Agree 8 54 163 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
total speedy resolution
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 4 27 82 82
Neutral 21 142 429 510 Agree 20 135 408 918 Strongly Agree 4 27 82 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
total responsibility
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 2 14 41 41
Neutral 13 88 265 306 Agree 27 182 551 857 Strongly Agree 7 47 143 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 669 Total 148 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
Valid 0 99 669 669 669 Strongly Disagree 8 54 54 723 Disagree 9 61 61 784 Neutral 5 34 34 818 Agree 6 41 41 858 Strongly Agree 21 142 142 1000 Total 148 1000 1000
Colleagues Frequency Percent Valid Percent Cumulative Percent
Valid 0 99 669 669 669 Strongly Disagree 9 61 61 730 Disagree 5 34 34 764 Neutral 8 54 54 818 Agree 12 81 81 899 Strongly Agree 15 101 101 1000 Total 148 1000 1000
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
Valid 0 99 669 669 669 Strongly Disagree 16 108 108 777 Disagree 11 74 74 851 Neutral 7 47 47 899 Agree 6 41 41 939 Strongly Agree 9 61 61 1000 Total 148 1000 1000
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
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
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
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 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
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
Marlegravene Amelo MBA-Intake 1 2003 page 2 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 3 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 4 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 5 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 6 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 7 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 8 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 9 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 10 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 11 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 12 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 13 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 14 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 15 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 16 MsMFHR Lim A Po Institute
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
Source Annual Reports CKC BEM 1999-2004
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
Marlegravene Amelo MBA-Intake 1 2003 page 17 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 18 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 19 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 20 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 21 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 22 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 23 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 24 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 25 MsMFHR Lim A Po Institute
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)
Marlegravene Amelo MBA-Intake 1 2003 page 26 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 27 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 28 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 29 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 30 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 31 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 32 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 33 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 34 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 35 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 36 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 37 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 38 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 39 MsMFHR Lim A Po Institute
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
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
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
Marlegravene Amelo MBA-Intake 1 2003 page 40 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 41 MsMFHR Lim A Po Institute
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)
Marlegravene Amelo MBA-Intake 1 2003 page 42 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 43 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 44 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 45 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 46 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 47 MsMFHR Lim A Po Institute
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)
Marlegravene Amelo MBA-Intake 1 2003 page 48 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 49 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 50 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 51 MsMFHR Lim A Po Institute
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
RQ1 What evidence exists that Transformational Leadership influences outcome measures in
organization in an emerging economy This question was assessed using the MLQ
Marlegravene Amelo MBA-Intake 1 2003 page 52 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 53 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 54 MsMFHR Lim A Po Institute
Table 7 Correlation between Transactional Leadership and the Performance Outcomes
Correlation Extra Effort Effectiveness Satisfaction Transactional Leadership 054 057 057
622 Research Question 2
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
Marlegravene Amelo MBA-Intake 1 2003 page 55 MsMFHR Lim A Po Institute
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
6241 Results of Job Satisfaction
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
Marlegravene Amelo MBA-Intake 1 2003 page 56 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 57 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 58 MsMFHR Lim A Po Institute
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
commitment to treat employees in a sensitive and considerate manner They expressed trust in
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
Marlegravene Amelo MBA-Intake 1 2003 page 59 MsMFHR Lim A Po Institute
CHAPTER SEVEN
7 CONCLUSIONS AND PRACTICAL IMPLEMENTATION
71 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 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
Marlegravene Amelo MBA-Intake 1 2003 page 60 MsMFHR Lim A Po Institute
73 Summary and Conclusions
The objectives of the study were
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
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
Marlegravene Amelo MBA-Intake 1 2003 page 61 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 62 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 63 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 64 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 65 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 66 MsMFHR Lim A Po Institute
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
7613 Incentive Program
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
Marlegravene Amelo MBA-Intake 1 2003 page 67 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 68 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 69 MsMFHR Lim A Po Institute
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Al-Suwaidi Jamal S Leadership and Management in the Information age An Overview United
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of America Mc Graw Hill 2004 Avolio Bruce J Publications Kellogg Leadership Studies Project Transformational
Leadership Working Papers The Great Leadership Migration to a Full Range Leadership Development System The James MacGregor Burns Academy of Leadership Academy of Leadership Press 1997 [On Line] Retrieved from httpwwwacademyumdedupublicationsklspdocstransformational_indexhtm [2005 January 10]
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Thousand Oaks California Sage Publications Inc 1999 Avolio Bruce J and Bernard M Bass ed Developing Potential Across a Full Range of
Leadership Tm Cases on Traditional and Transformational Leadership Mahwah New Jersey Laurence Erlbaum Associates 2002
Avolio Bruce J and Bernard M Bass Multifactor Leadership Questionnaire 3rd ed Manual
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Vol 2 Transformational and Charismatic Leadership The Road Ahead Kidlington Oxford UK Elsevier Science Ltd 2002
Ballenger K Eric Corporate Leaders Must Change Their Focus to Restore Public Confidence
Hanover Quarterly Winter 2003 [On Line] Retrieved from httphanovereduhanovertodaypublicationsquarterly [2005 April 28]
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What is a Global Manager 7th ed President and Fellows of Harvard College United States of America Harvard Business School Press 1994
Bartlett Christopher A and Sumantra Ghoshal Managing Across Borders The
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Marlegravene Amelo MBA-Intake-1 2003 page i MsMFHR Lim A Po Institute
Bartlett Christopher A and Sumantra Ghoshal The Individualized Corporation A
Fundamentally New Approach to Management United States of America Harper Business 1997 New York Harper Perennial 1999
Bass Bernard M Does the Transactional-Transformational Leadership Paradigm Transcend
Organizational and National Boundaries Journal of American Psychologist Volume 52 Number 2 Binghamton State University of New York February 1997
Bass Bernard M Publications Kellogg Leadership Studies Project Transformational
Leadership Working Papers The Ethics of Transformational Leadership The James MacGregor Burns Academy of Leadership Academy of Leadership Press 1997 [On Line] Retrieved from httpwwwacademyumdedupublicationsklspdocstransformational_indexhtm [2005 January 10]
Bass Bernard M Transformational Leadership Industrial Military and Educational Impact
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
Transformational Leadership United States of America Sage Publications Inc 1994 Bass Bernard M Paul Steidlmeier Ethics Character and Authentic Transformational
Leadership Center for leadership Studies School of Management Binghamton University Binghamton NY 1998 [On Line] Available httpEthicsMoralCharacterandAuthenticTraditionalLeadership [2005 January 28]
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Becker Brian E Mark A Huselid and Dave Ulrich The HR Scorecard Linking People
Strategy and Performance United States of America Harvard Business School Press 2001
Bennis Warren G On Becoming a Leader The Leadership Classic 2nd ed United States of
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Marlegravene Amelo MBA-Intake-1 2003 page ii MsMFHR Lim A Po Institute
Bennis Warren G Leadership and Management in the Information age A Farewell to Old
Leadership United Arab Emirates The Emirates Center for Strategic Studies and Research 2002
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
Brana ndash Shute Gary Leadership in the Caribbean Working Papers Policy papers on the
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
Brockner Joel Phillis A Siegel Joseph P Daly Martin Christopher Tom Tyler When Trust
Matters the moderating effect of outcome favorability Administrative Science Quarterly September 1997 [On Line] Retrieved from httpwwwfindarticlescomparticles [2005 March 30]
Burns James Macgregor Leadership New York Harper amp Row Publishers Inc 1978 New
York Perennial 1979 Burns James Macgregor Transforming Leadership A New Pursuit of Happiness New York
Atlantic Monthly Press 2003 Byham William Zapp The Lighting of Empowerment How to Improve Productivity Quality
and Employee Satisfaction United States of America Development Dimensions International Publications 1988 Reprint New York Ballantine Publishing Group 1998
Central Intelligence Agency The World Factbook Suriname [On Line] Retrieved from
httpwwwciagovpublicationsfactbookprintsnshtml [2004 August 3] Chowdhury Subir (led by) Next Generation Business Handbook New Strategies from
Tomorrows Leaders Hoboken New Jersey John Wiley amp Sons Inc 2004 Ciancutti Arky MD and Thomas L Steding Built on Trust Gaining Competitive Advantage
in Any Organization Illinois Contemporary Books 2001 Ciulla Joanne B ed Foreword by James MacGregor Burns Ethics The Heart of Leadership
Westport Connecticut London Quorum Books 1998 United States of America Preager 1998
CKC BEM NV Annual reports 1999-2004 Paramaribo 2000-2005
Marlegravene Amelo MBA-Intake-1 2003 page iii MsMFHR Lim A Po Institute
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2005 CKC BEM NV PUM Report CKC BEM NV Suriname By M van der Werken Paramaribo
1998 CKC BEM NV Quick Scan Paramaribo July 2001 CKC BEM NV Rapport Betongroep By Werkgroep Betonsector C Kersten amp Co NV
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
Bedrijfsgezondheidszorg Paramaribo 2001 Cone John D and Sharon L Foster Dissertation and Theses from Start to Finish Psychology
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
Competence or Charisma United Arab Emirates The Emirates Center for Strategic Studies and Research 2002
Couto Richard A Publications Kellogg leadership studies project Transformational
Leadership Working Papers Social Capital and Leadership The James MacGregor Burns Academy of Leadership Academy of Leadership Press 1997 [On Line] Retrieved from httpwwwacademyumdedupublicationsklspdocstransformational_indexhtm [2005 April 28]
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
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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
Publishers 1994 [On Line] Retrieved from httpwwwleadingtodayorg [2005 January 27]
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
Studies March 2001 [On Line] Retrieved from httpwwwfindarticlescomparticles [2005 March 30]
Gill Roger Beyond Transformational Leadership Developing Vision Values and Strategy
Research Center for Leadership Studies England [On Line] Retrieved from wwwleadershipcouk [2005 January 28]
Goleman Daniel Richard Boyatzis and Annie McKee Harvard Business Review on
Breakthrough Leadership Primal Leadership The Hidden Driver of great Performance 4th ed Harvard Business School Publishing Corporation United States of America Harvard Business School Press 2001
Goleman Daniel Harvard Business Review on What Makes a Leader Leadership That gets
Results 4th ed Harvard Business School Publishing Corporation United States of America Harvard Business School Press 2001
Goleman Daniel Harvard Business Review on What Makes a Leader What Makes a Leader
4th ed Harvard Business School Publishing Corporation United States of America Harvard Business School Press 2001
Gupta Jatinder N D and Sushil K Sharma Intelligent Enterprises of the 21st Century United
States of America Idea Group Publishing 2004 Handy Charles Stephen Covey Michael Porter CK Prahalad Gary Hamel Michael Hammer
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
Valid Not at all 2 14 41 41 Once in a While 4 27 82 122 Sometimes 12 81 245 367 Fairly often 19 128 388 755 Frequently if not always 12 81 245 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Inspirational Motivation Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 2 14 41 41 Once in a While 2 14 41 82 Sometimes 7 47 143 224 Fairly often 14 95 286 510 Frequently if not always 24 162 490 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 669 Total 148 1000
Total Individualized Consideration Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 1 7 20 20 Once in a While 9 61 184 204 Sometimes 13 88 265 469 Fairly often 18 122 367 837 Frequently if not always 8 54 163 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Contingent Reward Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 3 20 61 61 Once in a While 5 34 102 163 Sometimes 9 61 184 347 Fairly often 15 101 306 653 Frequently if not always 17 115 347 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 6689 Total 148 10000
Total Management by Exception Active Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 4 270 816 816 Once in a While 20 1351 4082 4898 Sometimes 13 878 2653 7551 Fairly often 11 743 2245 9796 Frequently if not always 1 068 204 10000 Total 49 3311 10000
Missing System 99 6689 Total 148 10000
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
Missing System 99 6689 Total 148 10000
Total Extra Effort Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 3 20 61 61 Once in a While 1 7 20 82 Sometimes 14 95 286 367 Fairly often 17 115 347 714 Frequently if not always 14 95 286 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Effectiveness Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 2 14 41 41 Once in a While 6 41 122 163 Sometimes 11 74 224 388 Fairly often 17 115 347 735 Frequently if not always 13 88 265 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Satisfaction Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 3 20 61 61 Once in a While 2 14 41 102 Sometimes 7 47 143 245 Fairly often 18 122 367 612 Frequently if not always 19 128 388 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 669 Total 148 1000
total direct communication
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 1 7 20 20
Neutral 14 95 286 306 Agree 33 223 673 980 Strongly Agree 1 7 20 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
total commitment
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 4 27 82 82
Neutral 21 142 429 510 Agree 16 108 327 837 Strongly Agree 8 54 163 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
total speedy resolution
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 4 27 82 82
Neutral 21 142 429 510 Agree 20 135 408 918 Strongly Agree 4 27 82 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
total responsibility
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 2 14 41 41
Neutral 13 88 265 306 Agree 27 182 551 857 Strongly Agree 7 47 143 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 669 Total 148 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
Valid 0 99 669 669 669 Strongly Disagree 8 54 54 723 Disagree 9 61 61 784 Neutral 5 34 34 818 Agree 6 41 41 858 Strongly Agree 21 142 142 1000 Total 148 1000 1000
Colleagues Frequency Percent Valid Percent Cumulative Percent
Valid 0 99 669 669 669 Strongly Disagree 9 61 61 730 Disagree 5 34 34 764 Neutral 8 54 54 818 Agree 12 81 81 899 Strongly Agree 15 101 101 1000 Total 148 1000 1000
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
Valid 0 99 669 669 669 Strongly Disagree 16 108 108 777 Disagree 11 74 74 851 Neutral 7 47 47 899 Agree 6 41 41 939 Strongly Agree 9 61 61 1000 Total 148 1000 1000
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
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
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
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 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
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
Marlegravene Amelo MBA-Intake 1 2003 page 2 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 3 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 4 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 5 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 6 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 7 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 8 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 9 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 10 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 11 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 12 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 13 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 14 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 15 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 16 MsMFHR Lim A Po Institute
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
Source Annual Reports CKC BEM 1999-2004
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
Marlegravene Amelo MBA-Intake 1 2003 page 17 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 18 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 19 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 20 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 21 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 22 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 23 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 24 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 25 MsMFHR Lim A Po Institute
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)
Marlegravene Amelo MBA-Intake 1 2003 page 26 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 27 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 28 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 29 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 30 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 31 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 32 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 33 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 34 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 35 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 36 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 37 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 38 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 39 MsMFHR Lim A Po Institute
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
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
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
Marlegravene Amelo MBA-Intake 1 2003 page 40 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 41 MsMFHR Lim A Po Institute
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)
Marlegravene Amelo MBA-Intake 1 2003 page 42 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 43 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 44 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 45 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 46 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 47 MsMFHR Lim A Po Institute
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)
Marlegravene Amelo MBA-Intake 1 2003 page 48 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 49 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 50 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 51 MsMFHR Lim A Po Institute
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
RQ1 What evidence exists that Transformational Leadership influences outcome measures in
organization in an emerging economy This question was assessed using the MLQ
Marlegravene Amelo MBA-Intake 1 2003 page 52 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 53 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 54 MsMFHR Lim A Po Institute
Table 7 Correlation between Transactional Leadership and the Performance Outcomes
Correlation Extra Effort Effectiveness Satisfaction Transactional Leadership 054 057 057
622 Research Question 2
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
Marlegravene Amelo MBA-Intake 1 2003 page 55 MsMFHR Lim A Po Institute
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
6241 Results of Job Satisfaction
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
Marlegravene Amelo MBA-Intake 1 2003 page 56 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 57 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 58 MsMFHR Lim A Po Institute
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
commitment to treat employees in a sensitive and considerate manner They expressed trust in
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
Marlegravene Amelo MBA-Intake 1 2003 page 59 MsMFHR Lim A Po Institute
CHAPTER SEVEN
7 CONCLUSIONS AND PRACTICAL IMPLEMENTATION
71 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 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
Marlegravene Amelo MBA-Intake 1 2003 page 60 MsMFHR Lim A Po Institute
73 Summary and Conclusions
The objectives of the study were
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
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
Marlegravene Amelo MBA-Intake 1 2003 page 61 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 62 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 63 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 64 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 65 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 66 MsMFHR Lim A Po Institute
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
7613 Incentive Program
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
Marlegravene Amelo MBA-Intake 1 2003 page 67 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 68 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 69 MsMFHR Lim A Po Institute
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Al-Suwaidi Jamal S Leadership and Management in the Information age An Overview United
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of America Mc Graw Hill 2004 Avolio Bruce J Publications Kellogg Leadership Studies Project Transformational
Leadership Working Papers The Great Leadership Migration to a Full Range Leadership Development System The James MacGregor Burns Academy of Leadership Academy of Leadership Press 1997 [On Line] Retrieved from httpwwwacademyumdedupublicationsklspdocstransformational_indexhtm [2005 January 10]
Avolio Bruce J Full Leadership Development Building the Vital Forces in Organizations
Thousand Oaks California Sage Publications Inc 1999 Avolio Bruce J and Bernard M Bass ed Developing Potential Across a Full Range of
Leadership Tm Cases on Traditional and Transformational Leadership Mahwah New Jersey Laurence Erlbaum Associates 2002
Avolio Bruce J and Bernard M Bass Multifactor Leadership Questionnaire 3rd ed Manual
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Vol 2 Transformational and Charismatic Leadership The Road Ahead Kidlington Oxford UK Elsevier Science Ltd 2002
Ballenger K Eric Corporate Leaders Must Change Their Focus to Restore Public Confidence
Hanover Quarterly Winter 2003 [On Line] Retrieved from httphanovereduhanovertodaypublicationsquarterly [2005 April 28]
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What is a Global Manager 7th ed President and Fellows of Harvard College United States of America Harvard Business School Press 1994
Bartlett Christopher A and Sumantra Ghoshal Managing Across Borders The
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Marlegravene Amelo MBA-Intake-1 2003 page i MsMFHR Lim A Po Institute
Bartlett Christopher A and Sumantra Ghoshal The Individualized Corporation A
Fundamentally New Approach to Management United States of America Harper Business 1997 New York Harper Perennial 1999
Bass Bernard M Does the Transactional-Transformational Leadership Paradigm Transcend
Organizational and National Boundaries Journal of American Psychologist Volume 52 Number 2 Binghamton State University of New York February 1997
Bass Bernard M Publications Kellogg Leadership Studies Project Transformational
Leadership Working Papers The Ethics of Transformational Leadership The James MacGregor Burns Academy of Leadership Academy of Leadership Press 1997 [On Line] Retrieved from httpwwwacademyumdedupublicationsklspdocstransformational_indexhtm [2005 January 10]
Bass Bernard M Transformational Leadership Industrial Military and Educational Impact
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
Transformational Leadership United States of America Sage Publications Inc 1994 Bass Bernard M Paul Steidlmeier Ethics Character and Authentic Transformational
Leadership Center for leadership Studies School of Management Binghamton University Binghamton NY 1998 [On Line] Available httpEthicsMoralCharacterandAuthenticTraditionalLeadership [2005 January 28]
Bavendam James PhD Effective Management Through Measurement Managing Job
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Becker Brian E Mark A Huselid and Dave Ulrich The HR Scorecard Linking People
Strategy and Performance United States of America Harvard Business School Press 2001
Bennis Warren G On Becoming a Leader The Leadership Classic 2nd ed United States of
America Basic Books 2003
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Bennis Warren G Leadership and Management in the Information age A Farewell to Old
Leadership United Arab Emirates The Emirates Center for Strategic Studies and Research 2002
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
Brana ndash Shute Gary Leadership in the Caribbean Working Papers Policy papers on the
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
Brockner Joel Phillis A Siegel Joseph P Daly Martin Christopher Tom Tyler When Trust
Matters the moderating effect of outcome favorability Administrative Science Quarterly September 1997 [On Line] Retrieved from httpwwwfindarticlescomparticles [2005 March 30]
Burns James Macgregor Leadership New York Harper amp Row Publishers Inc 1978 New
York Perennial 1979 Burns James Macgregor Transforming Leadership A New Pursuit of Happiness New York
Atlantic Monthly Press 2003 Byham William Zapp The Lighting of Empowerment How to Improve Productivity Quality
and Employee Satisfaction United States of America Development Dimensions International Publications 1988 Reprint New York Ballantine Publishing Group 1998
Central Intelligence Agency The World Factbook Suriname [On Line] Retrieved from
httpwwwciagovpublicationsfactbookprintsnshtml [2004 August 3] Chowdhury Subir (led by) Next Generation Business Handbook New Strategies from
Tomorrows Leaders Hoboken New Jersey John Wiley amp Sons Inc 2004 Ciancutti Arky MD and Thomas L Steding Built on Trust Gaining Competitive Advantage
in Any Organization Illinois Contemporary Books 2001 Ciulla Joanne B ed Foreword by James MacGregor Burns Ethics The Heart of Leadership
Westport Connecticut London Quorum Books 1998 United States of America Preager 1998
CKC BEM NV Annual reports 1999-2004 Paramaribo 2000-2005
Marlegravene Amelo MBA-Intake-1 2003 page iii MsMFHR Lim A Po Institute
CKC BEM NV Audit reports 1999- 2004 by Ernst amp Young Accountants Paramaribo 2000-
2005 CKC BEM NV PUM Report CKC BEM NV Suriname By M van der Werken Paramaribo
1998 CKC BEM NV Quick Scan Paramaribo July 2001 CKC BEM NV Rapport Betongroep By Werkgroep Betonsector C Kersten amp Co NV
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
Bedrijfsgezondheidszorg Paramaribo 2001 Cone John D and Sharon L Foster Dissertation and Theses from Start to Finish Psychology
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
Competence or Charisma United Arab Emirates The Emirates Center for Strategic Studies and Research 2002
Couto Richard A Publications Kellogg leadership studies project Transformational
Leadership Working Papers Social Capital and Leadership The James MacGregor Burns Academy of Leadership Academy of Leadership Press 1997 [On Line] Retrieved from httpwwwacademyumdedupublicationsklspdocstransformational_indexhtm [2005 April 28]
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
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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
Publishers 1994 [On Line] Retrieved from httpwwwleadingtodayorg [2005 January 27]
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
Studies March 2001 [On Line] Retrieved from httpwwwfindarticlescomparticles [2005 March 30]
Gill Roger Beyond Transformational Leadership Developing Vision Values and Strategy
Research Center for Leadership Studies England [On Line] Retrieved from wwwleadershipcouk [2005 January 28]
Goleman Daniel Richard Boyatzis and Annie McKee Harvard Business Review on
Breakthrough Leadership Primal Leadership The Hidden Driver of great Performance 4th ed Harvard Business School Publishing Corporation United States of America Harvard Business School Press 2001
Goleman Daniel Harvard Business Review on What Makes a Leader Leadership That gets
Results 4th ed Harvard Business School Publishing Corporation United States of America Harvard Business School Press 2001
Goleman Daniel Harvard Business Review on What Makes a Leader What Makes a Leader
4th ed Harvard Business School Publishing Corporation United States of America Harvard Business School Press 2001
Gupta Jatinder N D and Sushil K Sharma Intelligent Enterprises of the 21st Century United
States of America Idea Group Publishing 2004 Handy Charles Stephen Covey Michael Porter CK Prahalad Gary Hamel Michael Hammer
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
Valid Not at all 2 14 41 41 Once in a While 4 27 82 122 Sometimes 12 81 245 367 Fairly often 19 128 388 755 Frequently if not always 12 81 245 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Inspirational Motivation Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 2 14 41 41 Once in a While 2 14 41 82 Sometimes 7 47 143 224 Fairly often 14 95 286 510 Frequently if not always 24 162 490 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 669 Total 148 1000
Total Individualized Consideration Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 1 7 20 20 Once in a While 9 61 184 204 Sometimes 13 88 265 469 Fairly often 18 122 367 837 Frequently if not always 8 54 163 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Contingent Reward Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 3 20 61 61 Once in a While 5 34 102 163 Sometimes 9 61 184 347 Fairly often 15 101 306 653 Frequently if not always 17 115 347 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 6689 Total 148 10000
Total Management by Exception Active Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 4 270 816 816 Once in a While 20 1351 4082 4898 Sometimes 13 878 2653 7551 Fairly often 11 743 2245 9796 Frequently if not always 1 068 204 10000 Total 49 3311 10000
Missing System 99 6689 Total 148 10000
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
Missing System 99 6689 Total 148 10000
Total Extra Effort Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 3 20 61 61 Once in a While 1 7 20 82 Sometimes 14 95 286 367 Fairly often 17 115 347 714 Frequently if not always 14 95 286 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Effectiveness Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 2 14 41 41 Once in a While 6 41 122 163 Sometimes 11 74 224 388 Fairly often 17 115 347 735 Frequently if not always 13 88 265 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Satisfaction Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 3 20 61 61 Once in a While 2 14 41 102 Sometimes 7 47 143 245 Fairly often 18 122 367 612 Frequently if not always 19 128 388 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 669 Total 148 1000
total direct communication
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 1 7 20 20
Neutral 14 95 286 306 Agree 33 223 673 980 Strongly Agree 1 7 20 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
total commitment
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 4 27 82 82
Neutral 21 142 429 510 Agree 16 108 327 837 Strongly Agree 8 54 163 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
total speedy resolution
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 4 27 82 82
Neutral 21 142 429 510 Agree 20 135 408 918 Strongly Agree 4 27 82 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
total responsibility
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 2 14 41 41
Neutral 13 88 265 306 Agree 27 182 551 857 Strongly Agree 7 47 143 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 669 Total 148 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
Valid 0 99 669 669 669 Strongly Disagree 8 54 54 723 Disagree 9 61 61 784 Neutral 5 34 34 818 Agree 6 41 41 858 Strongly Agree 21 142 142 1000 Total 148 1000 1000
Colleagues Frequency Percent Valid Percent Cumulative Percent
Valid 0 99 669 669 669 Strongly Disagree 9 61 61 730 Disagree 5 34 34 764 Neutral 8 54 54 818 Agree 12 81 81 899 Strongly Agree 15 101 101 1000 Total 148 1000 1000
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
Valid 0 99 669 669 669 Strongly Disagree 16 108 108 777 Disagree 11 74 74 851 Neutral 7 47 47 899 Agree 6 41 41 939 Strongly Agree 9 61 61 1000 Total 148 1000 1000
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
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
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
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 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
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
Marlegravene Amelo MBA-Intake 1 2003 page 2 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 3 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 4 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 5 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 6 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 7 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 8 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 9 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 10 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 11 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 12 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 13 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 14 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 15 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 16 MsMFHR Lim A Po Institute
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
Source Annual Reports CKC BEM 1999-2004
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
Marlegravene Amelo MBA-Intake 1 2003 page 17 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 18 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 19 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 20 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 21 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 22 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 23 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 24 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 25 MsMFHR Lim A Po Institute
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)
Marlegravene Amelo MBA-Intake 1 2003 page 26 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 27 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 28 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 29 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 30 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 31 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 32 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 33 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 34 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 35 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 36 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 37 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 38 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 39 MsMFHR Lim A Po Institute
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
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
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
Marlegravene Amelo MBA-Intake 1 2003 page 40 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 41 MsMFHR Lim A Po Institute
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)
Marlegravene Amelo MBA-Intake 1 2003 page 42 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 43 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 44 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 45 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 46 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 47 MsMFHR Lim A Po Institute
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)
Marlegravene Amelo MBA-Intake 1 2003 page 48 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 49 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 50 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 51 MsMFHR Lim A Po Institute
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
RQ1 What evidence exists that Transformational Leadership influences outcome measures in
organization in an emerging economy This question was assessed using the MLQ
Marlegravene Amelo MBA-Intake 1 2003 page 52 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 53 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 54 MsMFHR Lim A Po Institute
Table 7 Correlation between Transactional Leadership and the Performance Outcomes
Correlation Extra Effort Effectiveness Satisfaction Transactional Leadership 054 057 057
622 Research Question 2
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
Marlegravene Amelo MBA-Intake 1 2003 page 55 MsMFHR Lim A Po Institute
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
6241 Results of Job Satisfaction
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
Marlegravene Amelo MBA-Intake 1 2003 page 56 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 57 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 58 MsMFHR Lim A Po Institute
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
commitment to treat employees in a sensitive and considerate manner They expressed trust in
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
Marlegravene Amelo MBA-Intake 1 2003 page 59 MsMFHR Lim A Po Institute
CHAPTER SEVEN
7 CONCLUSIONS AND PRACTICAL IMPLEMENTATION
71 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 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
Marlegravene Amelo MBA-Intake 1 2003 page 60 MsMFHR Lim A Po Institute
73 Summary and Conclusions
The objectives of the study were
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
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
Marlegravene Amelo MBA-Intake 1 2003 page 61 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 62 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 63 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 64 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 65 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 66 MsMFHR Lim A Po Institute
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
7613 Incentive Program
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
Marlegravene Amelo MBA-Intake 1 2003 page 67 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 68 MsMFHR Lim A Po Institute
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
Marlegravene Amelo MBA-Intake 1 2003 page 69 MsMFHR Lim A Po Institute
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of America Mc Graw Hill 2004 Avolio Bruce J Publications Kellogg Leadership Studies Project Transformational
Leadership Working Papers The Great Leadership Migration to a Full Range Leadership Development System The James MacGregor Burns Academy of Leadership Academy of Leadership Press 1997 [On Line] Retrieved from httpwwwacademyumdedupublicationsklspdocstransformational_indexhtm [2005 January 10]
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Leadership Tm Cases on Traditional and Transformational Leadership Mahwah New Jersey Laurence Erlbaum Associates 2002
Avolio Bruce J and Bernard M Bass Multifactor Leadership Questionnaire 3rd ed Manual
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Marlegravene Amelo MBA-Intake-1 2003 page i MsMFHR Lim A Po Institute
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Bass Bernard M Does the Transactional-Transformational Leadership Paradigm Transcend
Organizational and National Boundaries Journal of American Psychologist Volume 52 Number 2 Binghamton State University of New York February 1997
Bass Bernard M Publications Kellogg Leadership Studies Project Transformational
Leadership Working Papers The Ethics of Transformational Leadership The James MacGregor Burns Academy of Leadership Academy of Leadership Press 1997 [On Line] Retrieved from httpwwwacademyumdedupublicationsklspdocstransformational_indexhtm [2005 January 10]
Bass Bernard M Transformational Leadership Industrial Military and Educational Impact
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
Transformational Leadership United States of America Sage Publications Inc 1994 Bass Bernard M Paul Steidlmeier Ethics Character and Authentic Transformational
Leadership Center for leadership Studies School of Management Binghamton University Binghamton NY 1998 [On Line] Available httpEthicsMoralCharacterandAuthenticTraditionalLeadership [2005 January 28]
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Becker Brian E Mark A Huselid and Dave Ulrich The HR Scorecard Linking People
Strategy and Performance United States of America Harvard Business School Press 2001
Bennis Warren G On Becoming a Leader The Leadership Classic 2nd ed United States of
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Marlegravene Amelo MBA-Intake-1 2003 page ii MsMFHR Lim A Po Institute
Bennis Warren G Leadership and Management in the Information age A Farewell to Old
Leadership United Arab Emirates The Emirates Center for Strategic Studies and Research 2002
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
Brana ndash Shute Gary Leadership in the Caribbean Working Papers Policy papers on the
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
Brockner Joel Phillis A Siegel Joseph P Daly Martin Christopher Tom Tyler When Trust
Matters the moderating effect of outcome favorability Administrative Science Quarterly September 1997 [On Line] Retrieved from httpwwwfindarticlescomparticles [2005 March 30]
Burns James Macgregor Leadership New York Harper amp Row Publishers Inc 1978 New
York Perennial 1979 Burns James Macgregor Transforming Leadership A New Pursuit of Happiness New York
Atlantic Monthly Press 2003 Byham William Zapp The Lighting of Empowerment How to Improve Productivity Quality
and Employee Satisfaction United States of America Development Dimensions International Publications 1988 Reprint New York Ballantine Publishing Group 1998
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httpwwwciagovpublicationsfactbookprintsnshtml [2004 August 3] Chowdhury Subir (led by) Next Generation Business Handbook New Strategies from
Tomorrows Leaders Hoboken New Jersey John Wiley amp Sons Inc 2004 Ciancutti Arky MD and Thomas L Steding Built on Trust Gaining Competitive Advantage
in Any Organization Illinois Contemporary Books 2001 Ciulla Joanne B ed Foreword by James MacGregor Burns Ethics The Heart of Leadership
Westport Connecticut London Quorum Books 1998 United States of America Preager 1998
CKC BEM NV Annual reports 1999-2004 Paramaribo 2000-2005
Marlegravene Amelo MBA-Intake-1 2003 page iii MsMFHR Lim A Po Institute
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2005 CKC BEM NV PUM Report CKC BEM NV Suriname By M van der Werken Paramaribo
1998 CKC BEM NV Quick Scan Paramaribo July 2001 CKC BEM NV Rapport Betongroep By Werkgroep Betonsector C Kersten amp Co NV
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
Bedrijfsgezondheidszorg Paramaribo 2001 Cone John D and Sharon L Foster Dissertation and Theses from Start to Finish Psychology
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
Competence or Charisma United Arab Emirates The Emirates Center for Strategic Studies and Research 2002
Couto Richard A Publications Kellogg leadership studies project Transformational
Leadership Working Papers Social Capital and Leadership The James MacGregor Burns Academy of Leadership Academy of Leadership Press 1997 [On Line] Retrieved from httpwwwacademyumdedupublicationsklspdocstransformational_indexhtm [2005 April 28]
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
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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
Publishers 1994 [On Line] Retrieved from httpwwwleadingtodayorg [2005 January 27]
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
Studies March 2001 [On Line] Retrieved from httpwwwfindarticlescomparticles [2005 March 30]
Gill Roger Beyond Transformational Leadership Developing Vision Values and Strategy
Research Center for Leadership Studies England [On Line] Retrieved from wwwleadershipcouk [2005 January 28]
Goleman Daniel Richard Boyatzis and Annie McKee Harvard Business Review on
Breakthrough Leadership Primal Leadership The Hidden Driver of great Performance 4th ed Harvard Business School Publishing Corporation United States of America Harvard Business School Press 2001
Goleman Daniel Harvard Business Review on What Makes a Leader Leadership That gets
Results 4th ed Harvard Business School Publishing Corporation United States of America Harvard Business School Press 2001
Goleman Daniel Harvard Business Review on What Makes a Leader What Makes a Leader
4th ed Harvard Business School Publishing Corporation United States of America Harvard Business School Press 2001
Gupta Jatinder N D and Sushil K Sharma Intelligent Enterprises of the 21st Century United
States of America Idea Group Publishing 2004 Handy Charles Stephen Covey Michael Porter CK Prahalad Gary Hamel Michael Hammer
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
Valid Not at all 2 14 41 41 Once in a While 4 27 82 122 Sometimes 12 81 245 367 Fairly often 19 128 388 755 Frequently if not always 12 81 245 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Inspirational Motivation Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 2 14 41 41 Once in a While 2 14 41 82 Sometimes 7 47 143 224 Fairly often 14 95 286 510 Frequently if not always 24 162 490 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 669 Total 148 1000
Total Individualized Consideration Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 1 7 20 20 Once in a While 9 61 184 204 Sometimes 13 88 265 469 Fairly often 18 122 367 837 Frequently if not always 8 54 163 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Contingent Reward Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 3 20 61 61 Once in a While 5 34 102 163 Sometimes 9 61 184 347 Fairly often 15 101 306 653 Frequently if not always 17 115 347 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 6689 Total 148 10000
Total Management by Exception Active Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 4 270 816 816 Once in a While 20 1351 4082 4898 Sometimes 13 878 2653 7551 Fairly often 11 743 2245 9796 Frequently if not always 1 068 204 10000 Total 49 3311 10000
Missing System 99 6689 Total 148 10000
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
Missing System 99 6689 Total 148 10000
Total Extra Effort Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 3 20 61 61 Once in a While 1 7 20 82 Sometimes 14 95 286 367 Fairly often 17 115 347 714 Frequently if not always 14 95 286 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Effectiveness Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 2 14 41 41 Once in a While 6 41 122 163 Sometimes 11 74 224 388 Fairly often 17 115 347 735 Frequently if not always 13 88 265 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
Total Satisfaction Frequency Percent Valid Percent Cumulative Percent
Valid Not at all 3 20 61 61 Once in a While 2 14 41 102 Sometimes 7 47 143 245 Fairly often 18 122 367 612 Frequently if not always 19 128 388 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 669 Total 148 1000
total direct communication
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 1 7 20 20
Neutral 14 95 286 306 Agree 33 223 673 980 Strongly Agree 1 7 20 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
total commitment
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 4 27 82 82
Neutral 21 142 429 510 Agree 16 108 327 837 Strongly Agree 8 54 163 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
total speedy resolution
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 4 27 82 82
Neutral 21 142 429 510 Agree 20 135 408 918 Strongly Agree 4 27 82 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
total responsibility
Frequency Percent Valid Percent Cumulative Percent Valid Disagree 2 14 41 41
Neutral 13 88 265 306 Agree 27 182 551 857 Strongly Agree 7 47 143 1000 Total 49 331 1000
Missing System 99 669 Total 148 1000
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
Missing System 99 669 Total 148 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
Valid 0 99 669 669 669 Strongly Disagree 8 54 54 723 Disagree 9 61 61 784 Neutral 5 34 34 818 Agree 6 41 41 858 Strongly Agree 21 142 142 1000 Total 148 1000 1000
Colleagues Frequency Percent Valid Percent Cumulative Percent
Valid 0 99 669 669 669 Strongly Disagree 9 61 61 730 Disagree 5 34 34 764 Neutral 8 54 54 818 Agree 12 81 81 899 Strongly Agree 15 101 101 1000 Total 148 1000 1000
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
Valid 0 99 669 669 669 Strongly Disagree 16 108 108 777 Disagree 11 74 74 851 Neutral 7 47 47 899 Agree 6 41 41 939 Strongly Agree 9 61 61 1000 Total 148 1000 1000
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
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
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
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 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
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