Leaders’ Effective Communication Competencies: An Intercede in Amplifying the Effect of Leadership Styles on Employee Turnover Intentions in Indian Small and Medium Scale IT/ITES Organizations
Keywords:
Turnover intention, Transactional leadership, Transformational leadership, Effective communication Competencies, leadership stylesAbstract
The purpose of this paper is to address two of the theoretical and empirical questions on two main leadership styles: transformational and transactional leadership: what effect both transformational and transactional leadership has on employees’ turnover intentions of executives working in Small and Medium Indian IT/ITES organizations. What is the change in effect in case leaders have effective communication competencies?
A mediation model for the effective communication competencies linking transformational and transactional leadership and turnover intentions was developed and tested on a sample of 242 employees working in small and medium Indian IT/ ITES organization by using SPSS-23 and Amos-21softwares.
Significant negative relation of Transactional leadership style and transformational leadership with employee turnover intentions observed. Apart from them both the leadership styles were positively associated with communication competencies and communication competencies were again negatively linked to employee turnover intentions. Mediation analysis also indicated the partial mediation of communication competencies for both leadership styles. The effects were significant at 95% of confidence level.
The findings of the present study may be valuable to organizations and leaders who are struggling with employee turnover. Small and medium IT/ITES organizations can control turnover intentions by hiring transactional or transformational leaders with effective communication competencies to create a healthy work environment.
This study validates the results of previous studies in highlighting the universal effects of transformational and transactional leadership on turnover intentions. And also explains the change in effect if leaders develop effective communication competencies.
References
Abbasi, S. M., & Hollman, K. W. (2000). Turnover: The real bottom line. Public Personnel Management, 29(3), 333-342.
Abouraia, M. K. et al. (2017). Transformational Leadership, Job Satisfaction, Organizational Commitment, and Turnover Intentions: The Direct Effects among Bank Representatives. American Journal of Industrial and Business Management, 7, 404-423.
Allen, N.J., Meyer, J.P., (1990). Measurement and Antecedents of Affective, Continuance and Normative Commitment to the Organization. Journal of Occupational Psychology, 63, 1–18.
Allen, M.W. (1996). The relationship between communication, affect, job alternatives, and voluntary turnover intentions. Southern Communication Journal, 61(3), 198-209. DOI: 10.1080/10417949609373015
Alzubi, Y. Z. W. (2018). Turnover intentions in Jordanian Universities: The role of leadership behaviour, organizational commitment and organizational culture. International Journal of Advanced and Applied Sciences, 5(1), 177-192.
Avolio, B. J., & Bass, B. M. (1999). Re-examining the components of transformational and transactional leadership using the Multifactor Leadership Questionnaire. Journal of Occupational & Organizational Psychology, 72(4), 441-462.
Awamleh, R., & Gardner, W. L. (1999). Perceptions of leader charisma and effectiveness: The effects of vision content, delivery, and organizational performance. The Leadership Quarterly, 10(3), 345-373. http://dx.doi.org/10.1016/S1048-9843(99)00022-3
Bass, B. M. (1991). From transactional to transformational leadership: Learning to share the vision. Organizational dynamics, 18(3), 19-31.
Bass, B. M., & Riggio, R. E. (2006). Transformational leadership. Psychology Press.
Bass, B.M. and Avolio, B.J. (1995), Multifactor Leadership Questionnaire for Research, Mind Garden, Redwood City, CA.
Bi, L., Ehrich, J., & Ehrich, L. (2012). Confucius as transformational leader: lessons for ESL leadership. International Journal of Educational Management, 26(4), 391-402.
Cetin, M. et al. (2012). The Effects of Leadership Styles and the Communication Competency of Bank Managers on Employee’s Job Satisfaction: The Case of Turkish Banks. Procedia - Social and Behavioural Sciences, 58, 227-235.
Das, P. (2017). Micro, Small and Medium Enterprises (MSME) in India: Opportunities, Issues & Challenges. Great Lakes Herald, 11(1), 77-88. https://www.greatlakes.edu.in/herald/pdfs/march-2017/article-5.pdf
De Vries, R. E., Bakker-Pieper, A., & Oostenveld, W. (2010). Leadership = Communication? The Relations of Leaders’ Communication Styles with Leadership Styles, Knowledge Sharing and Leadership Outcomes. Journal of Business and Psychology, 25(3), 367–380. http://doi.org/10.1007/s10869-009-9140-2
Deva, T.H., & Yazdanifard, R. (2014). The Review of Communication Methods Used by Leaders Employing Various Basic Leadership Styles.
Dewan, T., & Myatt, D. P. (2008). The Qualities of Leadership: Direction, Communication, and Obfuscation. Available at: https://ssrn.com/abstract=1083815.
doi: 10.1207/s15327906mbr3202_5.
Fatimah, M. S. (2008). Effects of communication on turnover intention: A case of hotel employees in Malaysia. Graduate Theses and Dissertations.
Firth, L. (2003). How can managers reduce employee intention to quit? Journal of Managerial Psychology, 19(2), 170-187.
George, D., & Mallery, P. (2003). SPSS for Windows step by step: A simple guide and reference. 11.0 update (4th ed.). Boston, MA: Allyn & Bacon.
Gul, S. et al. (2012). Leadership Styles, Turnover Intentions and the Mediating Role of Organizational Commitment. Information and Knowledge, 2(7).
Gul, S., Ahmad, B., Rehman, S., Shabir, N., & Razzaq, N. (2012). Leadership Styles, Turnover Intentions and the Mediating Role of Organizational Commitment. Information and Knowledge Management, 2(7), 44-51.
Gwavuya, F. (2011). Leadership Influences on Turnover Intentions of Academic Staff in Tertiary Institutions in Zimbabwe. Academic Leadership Online Journal. 9(2). http://www.academicleadership.
Gyensare, M. A. et al. (2016). Transformational leadership and employee turnover intention. World Journal of Entrepreneurship, Management and Sustainable Development, 12(3), 243-266. http://dx.doi.org/10.1108/WJEMSD-02-2016-0008
Hair JF, Black WC, Babin BJ, et al. (1995). Multivariate data analysis. New Jersey: Pearson Prentice Hall,
Iqra Saeed et al. (2014). The relationship of Turnover intention with job satisfaction, job performance, Leader member exchange, Emotional intelligence and organizational commitment. International Journal of Learning & Development, 4(2).
Jinuk, Oh., Semi, Oh. (2017). Authentic leadership and turnover intention: does organizational size matter? Leadership & Organization Development Journal. https://doi.org/10.1108/LODJ-08-2016-0209
Judge, TA., & Piccolo RF. (2004). Transformational and transactional leadership: A meta-analytic test of their relative validity. Journal of Applied Psychology, 89(5), 755–768.
Kerdngern, N. et al. (2017). Influence of contemporary leadership on job satisfaction, organizational commitment, and turnover intention: A case study of the construction industry in Thailand. International Journal of Engineering Business Management, 9,1-8.
Khan, S. I. (2015). Using Transformational Leadership to Predict Employees’ Turnover Intention: The Mediating Effects of Trust and Employees’ Job Performance in Bangkok, Thailand. Academic Services Journal Prince of Songkla University, 26(1).
Long, C.S. et al. (2012). Leadership Styles and Employees’ Turnover Intention: Exploratory Study of Academic Staff in a Malaysian College. World Appl. Sci. J., 19 (4), 575-581.
Luthra, A., & Dahiya, K. (2015). Organizational Communication and Management Effectiveness: An analytical Study at Various Managerial Levels. International Journal of Management & Business Studies, 5(3).
Luthra, A., & Dahiya, R. (2015). Effective Leadership is all about Communicating Effectively: Connecting Leadership and Communication. International Journal of Management & Business Studies, 5(3).
MacCallum & Hong. (1997). Multivariate Behav Res. 32(2), 193-210.
Mat, J. (2008). The Influence of Leadership Style on Internal Marketing in Retailing. PhD Thesis. University of Stirling.
Mayfield, J., & Mayfield, M. (2016). Leadership Communication: Reflecting, Engaging, and Innovating. International Journal of Business Communication,1(9).
Minavand, H. (2013). The impact of project managers’ leadership style on employees’ job satisfaction, performance and turnover. IOSR Journal of Business and Management, 11(6), 43-49.
Mobley, W. H. (1982). Employee turnover: Causes, consequences, and control. Reading, MA: Addison-Wesley.
Monge, P. R., Backman, S. G., Dillard, J. P., & Eisenburg, E. M. (1982). Communicator competence in the workplace: Model testing and scale development. Communication Yearbook, 5, 505-528
Naidoo, LJ., Lord RG. (2008). Speech imagery and perceptions of charisma: The mediating role of positive affect. The Leadership Quarterly. 19:283–296. doi: 10.1016/j.leaqua.2008.03.010. [Cross Ref]
Nanjundeswaraswamy, T. S., & Swamy, D. R. (2014). Leadership styles. Advances in Management, 7(2), 57-64.
Nazari, R. et al. (2016). The Analysis of the Relationship between Communication Skills and the Establishment of Clark's Management Network among Sport Managers. International Journal of Science Culture and Sport, 4(1). Doi: 10.14486/IntJSCS469.
Ngethe, J. M. et al. (2012). Influence of Leadership Style on Academic Staff Retention in Public Universities in Kenya. International Journal of Business and Social Science,3(21).
Nwagbara, U. et al. (2013) The Impact of Effective Communication on Employee Turnover Intension at First Bank of Nigeria. Economic Insights – Trends and Challenges, 2(4),13-21.
O’brien, R. (2007). A Caution Regarding Rules of Thumb for Variance Inflation Factors. Quality & Quantity, 41(5), 673-690.
Puni, A., Agyemang, C. B., & Asamoah, E. S. (2016). Leadership Styles, Employee Turnover Intentions and Counterproductive Work Behaviours. International Journal of Innovative Research and Development, 5(1), 1-7.
Stanton, J. M., Smith, P. C., & Ironson, G. H. (2004). Shorter can also be better: The Abridged Job In General scale. Educational and Psychological Measurement, 64, 878-893.
Shapiro SS, Wilk MB. (1965) An analysis of variance test for normality (complete samples). Biometrika, 52(3-4),591–611.
Siew, L. K. (2017). Analysis of the Relationship between Leadership Styles and Turnover Intention within Small Medium Enterprise in Malaysia. Journal of Arts & Social Sciences, 1(1), 1-11.
Soojin, K., Nam, K. J., & Yunna, R. (2017). Determinants of employee turnover intention: Understanding the roles of organizational justice, supervisory justice, authoritarian organizational culture and organization-employee relationship quality. Corporate Communications: An International Journal, 22(3), 308-328.
Steiger, H. J. (1990). Structural Model Evaluation and Modification: An Interval Estimation Approach. Multivariate Behavioral Research, 25(2), 173-180. DOI: 10.1207/s15327906mbr2502_4
Stiverson, B.L. (2015). Causes of Turnover and Employee Satisfaction: A Case Study of Otterbein University Tele FUND. Honor's Papers. Paper 10.
Tsai, M., Chuang, S., & Hsieh, W. (2009). An integrated process model of communication satisfaction and organizational outcomes. Social Behavior and Personality: An international journal, 37, 825-834. DOI: https://doi.org/10.2224/sbp.2009.37.6.825
Wu. (2009). A Competency-based Model for Success of An Entrepreneur Start-up. WSEAS Transaction of Business and Economics, 6(6).
