This research concerns with the relationship of the leadership of managers and organizational effectiveness which has been the chief interest of contemporary organizational theory.
The styles of leadership conduced to The Trait Approaches to Leadersh...
This research concerns with the relationship of the leadership of managers and organizational effectiveness which has been the chief interest of contemporary organizational theory.
The styles of leadership conduced to The Trait Approaches to Leadership, Behavioral Approaches to Leadership and Contingency Approaches to Leadership. And thereafter Downton's Transformational Leadership Theory(1973) as well as other new theories on leadership has been constantly created.
This research, out of many other contemporary leadership theories, observes the impact upon organizational effectiveness between Transformational Leadership and Transactional Leadership.
After the financial crisis of 1997, there was an apparent generation shift of employees from the old to the young and their value system also changed in the composition distribution of the organization.
The research especially placed interest on individualism, which is one of the prominent value of this new generation, and whether individualism plays a role in controlling part in organizational effectiveness, and whether the individual interest of the members, size of the organization, and organization possession characteristics play the role of moderating effects.
For the purpose of this research, leadership, organizational effectiveness, individualism, age, years of employment, size of the organization, organization possession characteristics have been studied through documentary and empirical analysis.
As for empirical analysis, hypothesis and survey has been used with the foundation of leadership styles and organizational theories and for statistical data, software SPSS WIN 10.0 was used to derive the research results and its implications.
The results and implications of the research are as follows.
First, between the two leadership style, charisma, motivation, and contingent reward has been analyzed as the most effective features. Therefore managers need a strategical approach to improve these features.
Second, the manager should aware of the importance of the age distribution in organization and the service years of the employee. And management strategy is needed to attend for different generations to avoid the loss of able employees but old.
Third, charisma of the leader, motivation, and contingent rewards are specific methods a manager can utilize to decrease the withdrawal intention.
Fourth, the manager should always have interested in the ability to adapt the changes of the distribution of the employees and their value system. A special attention on the upper mentioned points is required to the manager, for it can affect the subculture of the organization and, furthermore, change the entire culture of the organization.
Fifth, regarding the size of the organization, small and medium-sized corporation managers should practice individual consideration to the employees to keep their job satisfaction and a large corporation can enhance the organizational commitment with management by exception. And as for employees of private company, contingent reward is their biggest interest
and therefore managers should make a good use of this fact.
Sixth, Transformational and Transactional Leadership are essential in contemporary organizations. Thus through harmony between top class managers and middle class managers, they should show interest in the style of leadership which is best applicable for the organization.
Through this research, the importance of the leadership of the manager has been certified, also it is verified that the strategy to predict the change and adapt the change of employee's characteristics and change of traits of the organization is required for business management.