Leadership and change in a crisis organization: An exploratory analysis of the relationship between leadership style and employee perception

by Graham, Jennoa R., Ph.D., CAPELLA UNIVERSITY, 2008, 113 pages; 3339019


A financial service organization implemented the Consolidation Project to offset declines in the economy and operational revenue. This exploratory study examined the relationships between transformational, transactional, and laissez-faire leadership styles of departmental leaders and their subordinates' perceived extra effort, leadership effectiveness, satisfaction of leadership, and perception of change in a crisis situation. The Multifactor Leadership Questionnaire (Form 5X-Short) survey (Bass & Avolio, 2004), perception of change questions, the full range leadership model, and comparative analysis were used to analyze these relationships. According to seminal studies as reviewed in the literature, transformational leadership is the key to sustaining organizational change. The results of this research supported previous studies in that the participating leaders possessed the transformational leadership behaviors required to obtain employee buy-in and sustain the successful implementation of the Consolidation Project. Overall, participating employees were satisfied with their leader's effectiveness and will exert extra effort, contributing to long-term success. Due to the low response rate, a comparative analysis was performed and showed that there was a significant positive relationship between transformational leadership behaviors and employee perceptions. This significant relationship indicated that leaders had established the interpersonal relationships necessary to maintain motivation and increase participation throughout the crisis life cycle. This research through comparative analysis demonstrated the link between transformational leadership style and employee perception in sustaining organizational change success and preventing crisis reoccurrence.

AdviserShelley Robbins
Source TypeDissertation
SubjectsManagement; Organizational behavior
Publication Number3339019

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