The impact and influence of leadership style on employee loyalty and performance in commercial banks in Klang Valley

This thesis attempts to present a snapshot of leadership‟s style impact and influence and other related effecting reasons towards the employee's performance and loyalty in banking industry. The scope of this research is broad and attempts to address all issues involved in the employee's p...

Full description

Saved in:
Bibliographic Details
Main Author: Muhd Zulfadli, Ishammudin
Format: Thesis
Language:eng
eng
Published: 2014
Subjects:
Online Access:https://etd.uum.edu.my/4160/1/s812010.pdf
https://etd.uum.edu.my/4160/13/s812010_abstract.pdf
Tags: Add Tag
No Tags, Be the first to tag this record!
id my-uum-etd.4160
record_format uketd_dc
institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
advisor Darus, Amer
topic HD58.7 Organizational Behavior.
HG Finance
spellingShingle HD58.7 Organizational Behavior.
HG Finance
Muhd Zulfadli, Ishammudin
The impact and influence of leadership style on employee loyalty and performance in commercial banks in Klang Valley
description This thesis attempts to present a snapshot of leadership‟s style impact and influence and other related effecting reasons towards the employee's performance and loyalty in banking industry. The scope of this research is broad and attempts to address all issues involved in the employee's performance, transformational and transactional leadership style and loyalty. Therefore, this research is just focusing on those most influential factors, such as leadership style, employee's loyalty and variables that affects employee performance in banking industry in Malaysia. The study population comprised five headquarter offices of commercial banks around Kuala Lumpur City. It analysis and describes data collected from 118 respondents comprises of manager, executive and clerical staff of several commercials banks within Klang Valley area. To determine whether the hypothesis were accepted or rejected, Pearson Coefficient correlation analysis was conducted. Sobel test was also used in order to determine whether the mediator applied have mediating effect between independent variable and dependent variable in this thesis. The result of this research did support most of the researches done on transformational leadership and transactional leadership since it has been found that both leadership styles have significant (positive) relationship towards employee performance in banking industry. This thesis also concluded that employee loyalty do have mediation effect between transformational leadership and employee performance as well as between transactional leadership and employee performance. Demographic characters do not have strong influence on employee loyalty and performance within the organization based on the output received from the respondents of the distributed survey.
format Thesis
qualification_name masters
qualification_level Master's degree
author Muhd Zulfadli, Ishammudin
author_facet Muhd Zulfadli, Ishammudin
author_sort Muhd Zulfadli, Ishammudin
title The impact and influence of leadership style on employee loyalty and performance in commercial banks in Klang Valley
title_short The impact and influence of leadership style on employee loyalty and performance in commercial banks in Klang Valley
title_full The impact and influence of leadership style on employee loyalty and performance in commercial banks in Klang Valley
title_fullStr The impact and influence of leadership style on employee loyalty and performance in commercial banks in Klang Valley
title_full_unstemmed The impact and influence of leadership style on employee loyalty and performance in commercial banks in Klang Valley
title_sort impact and influence of leadership style on employee loyalty and performance in commercial banks in klang valley
granting_institution Universiti Utara Malaysia
granting_department Othman Yeop Abdullah Graduate School of Business
publishDate 2014
url https://etd.uum.edu.my/4160/1/s812010.pdf
https://etd.uum.edu.my/4160/13/s812010_abstract.pdf
_version_ 1747827690465918976
spelling my-uum-etd.41602022-08-03T02:00:13Z The impact and influence of leadership style on employee loyalty and performance in commercial banks in Klang Valley 2014-08 Muhd Zulfadli, Ishammudin Darus, Amer Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HD58.7 Organizational Behavior. HG Finance This thesis attempts to present a snapshot of leadership‟s style impact and influence and other related effecting reasons towards the employee's performance and loyalty in banking industry. The scope of this research is broad and attempts to address all issues involved in the employee's performance, transformational and transactional leadership style and loyalty. Therefore, this research is just focusing on those most influential factors, such as leadership style, employee's loyalty and variables that affects employee performance in banking industry in Malaysia. The study population comprised five headquarter offices of commercial banks around Kuala Lumpur City. It analysis and describes data collected from 118 respondents comprises of manager, executive and clerical staff of several commercials banks within Klang Valley area. To determine whether the hypothesis were accepted or rejected, Pearson Coefficient correlation analysis was conducted. Sobel test was also used in order to determine whether the mediator applied have mediating effect between independent variable and dependent variable in this thesis. The result of this research did support most of the researches done on transformational leadership and transactional leadership since it has been found that both leadership styles have significant (positive) relationship towards employee performance in banking industry. This thesis also concluded that employee loyalty do have mediation effect between transformational leadership and employee performance as well as between transactional leadership and employee performance. Demographic characters do not have strong influence on employee loyalty and performance within the organization based on the output received from the respondents of the distributed survey. 2014-08 Thesis https://etd.uum.edu.my/4160/ https://etd.uum.edu.my/4160/1/s812010.pdf text eng public https://etd.uum.edu.my/4160/13/s812010_abstract.pdf text eng public masters masters Universiti Utara Malaysia Abdullah, Musa, M., Zahari, H., Rahman, R., & Khalid, K. (2011). The study of employee satisfaction and its effects towards loyalty in hotel industry in Klang Valley, Malaysia. International Journal of Business and Social Science, 12(2), 56-63. Alkahtani, D. H., Abu-Jarad, D., & Sulaiman, P. (2011, May). The Impact of Personality and Leadership Styles on Leading Change Capability of Malaysian Managers. Australian Journal of Business and Management Research, 1(2), 70-94. Ayob, N. B., Voon, M. L., Lo, M. C., & Ngui, K. S. (2011). The influence of leadership styles on employees‟ job satisfaction in public sector organizations in Malaysia. International Journal of Business, Management and Social Sciences, 2(1), 24-32. Azril, H. (2010). The Influence of Socio-Demographic Factors on Work Performance Among Employees of Government Agriculture Agencies in Malaysia. Universiti Putra Malaysia, Serdang. Bass, B. M. (1999). Two decades of research and development in transformational leadership. European Journal of Work and Organizational Psychology, 8(1), 9-32. Behling, O., & Mcfillen, J. (1996). “A Syncretical Model Charismatic or Transformational Leadership. Group and Organisation Management, 21(2), pp. 120-160. Belonio, & Joy, R. (2010). The Effect of Leadership Style on Employee Satisfaction and Performance of Bank Employee In Bangkok. Stamford International University, Bangkok. Boonyachai, Y. (2011). An investigation of the leadership styles of middle managers in the Thai hotel industry using the MLQ (5X-Short Form) and Hofstede’s Cultural Dimensions. Southern Cross University, Lismore. Bunnel, T., Barter, P., & Morshidi, S. (2002). City profile:Kuala Lumpur Metropolitan Area; A Globalizing City region. Cities, 19(5), 357-370. Chien, M. H. (2004). An investigation of the relationship of organizational structure, employee's personality and organizational citizenship behaviors. Journal of American of Business, 5(1/2), 428-431. Daryoush, Y., Silong, A. D., Omar, Z., & Othman, J. (2013, July). Improving Job Performance: Workplace Learning is the First Step. International Journal of Education & Literacy Studies, 1(1), 101-105. Emuwa, A. (2013). Authentic Leadership: Commitment to Supervisor, Follower Empowerment, and Procedural Justice Climate. Emerging Leadership Journeys, 6(1), 45-65. Fong, L. W., Ting, L. W., Ng, Shua, & Teh. (2011). The Impacts of Organizational Change Towards Employee's Performance in Banking Industry. Universiti Tunku Abdul Rahman, Kuala Lumpur. Gruman, J. A., & Saks, A. M. (2010). Performance management and employee engagement. Human Resource Management Review, 21(2), 123-136. Hasbullah, N. B. (2008). The Relationship Between Leadership Behaviour and Organizational Commitment: A Study in The Co-operative Societies in Peninsular Malaysia. Universiti of Malaya, Kuala Lumpur. Ismail, M., & Rahim, H. A. (2009). Impact of Merger on Efficiency and Productivity. International Journal of Economics and Finance, 1(2), 225- 228. Jankingthong, K., & Rurkkhum, S. (2012). Factors Affecting Job Performance: A Review of Literature. Journal of Social Sciences, Humanities, and Arts, 12(2), 115-127. Jusoh, A., Long, C. S., Thean, L. Y., & Khairuzzaman, W. (2012). Leadership Styles and Employees‟ Turnover Intention: Exploratory Study of Academic Staff in a Malaysian College. World Applied Sciences Journal, 19(4), 575-581. Kazlauskaite, R., Buciuniene, I., & Turauskas, L. (2006). Building employee commitment in the hospitality industry. Baltic Journal of Management, 1(3), 300-314. Koh, S. Y. (2013, October 2). Retrieved February 24, 2014, from Towers Watson: http://www.towerswatson.com/en-MY/Press/ 2013/10/Higher-turnover-rate-in-Malaysian-Financial-Services -industry. Krattenmaker, T. (2009). Appraising employee performance in a downsized. Havard Management Updated, 14(5), 3-5. Lievens, F., Geit, P. V., & Coetsier, P. (1997). Identification of Transformational Leadership Qualities: An Examination of Potential Biases. European Journal Of Work And Organisational Psychology, 6(4),415-430. Long, C. S., & Thean, L. Y. (2012, October). Employees‟ Turnover Intention: A Leadership Issue? International Journal of Future Computer and Communication, 1(3), 229-230. Malaysia, B. N. (2013). Prospek dan Dasar Pada Tahun 2013. Kuala Lumpur: Bank Negara Malaysia. Mester, C., Visser, D., & Roodt, G. (2003). Leadership Style and Its Relation To Employee Attitudes and Behaviour. Journal of Industrial Psychology, 29(2), 72-82. Meyer, J. P., & Allen, N. J. (1991). A three Component of Conceptualization of Organizational Commitment. Human Resource Management Review, 1, pp. 61-89. Monetary, Markets, C., & Departments, A. P. (2013). Malaysia: Financial Sector Stability Assessment. Washington, D.C.: International Monetary Fund. Mullins, L. J. (1999). Management and Organizational Behaviour. London: Financial Times. Negron, D. (2008). A case study examining the relationship of the path-goal theory leadership styles to profits in El Paso, Texas, Rent-A-Center stores. Capella University, Minneapolis. Nunnally, J. (1978). Psychometric Theory. New York, NY: McGraw-Hill. Odumeru, J. A., & Ognonna, I. G. (2013, June). Transformational vs. Transactional Leadership Theories: Evidence in Literature. International Review of Management and Business Research, 2(2), pp. 355-359. Ogbonna, E., & Harris, L. C. (2000, August). Leadership style, organizational culture and performance: empirical evidence from UK companies. The International Journal of Human Resource Management, 11(4), 766-783. Othman, H. (2009). The Effects of The Perceived Leadership Style on Organizational Commitment. The Islamic University, Gaza. Oyentunji, & Christianah. (2006). The Relationship Between Leadership Style and School Climate in Botswana Secondary Schools. University of South Africa, Botswana. Pieterse-Landman, E. (2012). The relationship between transformational leadership, employee engagement, job characteristics and intention to quit. Stellenbosch University, Stellenbosch. Polston-Murdoch, L. (2013). An Investigation of Path-Goal Theory, Relationship of Leadership Style, Supervisor-Related Commitment, and Gender. Regent University School of Business & Leadership, Virginia. Rahman, R. B. (2012). A Study on Turnover Intention trend In Commercial Banks In Penang, Malaysia. Universiti Sains Malaysia, Georgetown. Ramlall, S. (2004). A review of employee motivation theories and their. Journal of American Academy of Business, 5(1/2), 52-63. Salanova, A., & Kirmanen, S. (2010). Employee Satisfaction and Work Motivation. Mikkeli University of Applied Sciences, South-Savo. Sobel, M. E. (1982). Asymptotic confidence intervals for indirect effects in structural equation models. Sociological Methodology, 13(2), pp. 290-312. Tandoh, V. C. (2011). Effect of Leadership Behaviours on Employee Performance in Guiness Ghana Breweries Limited. Kwame Nkrumah University, Kumasi. Vroom, V., & Jago, A. (1988). The New Leadership: Managing participation in Organisations. Cliffs: Prentice Hall. Wah, T. A. (2010). The Influence of Transformational Leadership On Team Innovation And Team Performance. Universiti Sains Malaysia, Georgetown. Werner, J. M. (2000). Implications of OCB and contextual performance. Human Resource Management, 10(1), 245-261. Wu, A. D., & Zumbo, B. D. (2007, June 6). Understanding and Using Mediators and Moderators. Vancouver, BC, Canada: Springer Science+Business Media. Xiaoxia, P., & Jing, W. (2006). The Influence of Gender and Culture on Leadership Styles of SMEs in China and Sweeden. Kristianstad University, Kristianstad. Yi, C. X. (2012). Factors Influencing Intention to Quit Among Bank Employees in Malaysia. Universiti Tunku Abdul Rahman, Kuala Lumpur. Yin, C. S., Meng, K. Y., & Yin, L. P. (2012). A Study of Employee Satisfaction and Its Effect Toward Loyalty In Hotel Industry. Universiti Tunku Abdul Rahman, Kuala Lumpur. Yukl, G. A. (2006). Leadership in Organizations. Prentice Hall.