The Effect of Transformational Leadership Behavior on Organizational Performance in Gold Industry of Saudi Arabia
Keywords:
Transformational Leadership, Organizational Performance, Gold Industry.
Abstract
This paper mainly aims at investigating the effect of transformational leadership behaviour on organizational performance, as well as other factors such as psychological ownership, working environment, employee involvement, incentives, and employee motivation take into account their effect on organizational performance. To achieve the objectives of the study, quantitative research approach was applied through a questionnaire specifically designed to collect primary information from the samples of the study, which consisted of (250) managers in gold shops in Jaddah. The collected data was analysed using SPSS 20.0. The results showed that transformational leadership behaviour, psychological ownership, working environment, employee involvement, incentives, and employee motivation significantly affect organizational performance in the Saudi Arabian gold industry. Finally, the researcher recommended ways to promote the concept of transformational leadership behaviour in the gold sector in Saudi Arabia at various administrative levels by holding courses and seminars.Transformational Leadership, Organizational Performance, Gold Industry.
References
Abusharbeh, M. T., & Nazzal, H. H. (2018). The Impact of Motivations on Employees Performance: Case Study from Palestinian Commercial Banks. International Business Research, 11(4), 142.
Aledeinat, M., & Alrfou, H. (2017). The Effects of Organizational Support and Organizational Commitment on Organizational Citizenship Behaviour: (A Conceptual Framework). International Journal of Management Sciences and Business Research, 6(5), 1-9.
ALHussain, A. Z. (2011). Barriers to knowledge management in Saudi Arabia. The George Washington University.
Alqatawenah, A. S. (2018). Transformational leadership style and its relationship with change management. Business: Theory and Practice, 19, 17.
Bacha, E. (2014). The relationship between transformational leadership, task performance and job characteristics. Journal of Management Development, 33(4), 410-420.
bakhit Al Zefeiti, S. M. (2017). The Influence of Transformational Leadership Behaviours on Organizational Commitment in Omani Governmental Organizations. International Journal of Business and Management, 12(4), 111.
Bakotić, D. (2016). Relationship between job satisfaction and organisational performance. Economic research-Ekonomska istraživanja, 29(1), 118-130.
Bushiri, C. P. (2014). The impact of working environment on employees’ performance, the case of Institute of Finance Management in Dar es Salaam (Doctoral dissertation, The Open University of Tanzania).
Butali, P., & Njoroge, D. (2018). Effect of Employee Participation on Organizational Performance with Organizational Commitment as a Moderator. International Journal of Scientific Research and Management, 6(06).
Chandani, A., Mehta, M., Mall, A., & Khokhar, V. (2016). Employee engagement: A review paper on factors affecting employee engagement. Indian Journal of Science and Technology, 9(15).
Cheema, J. R., & Asrar-ul-Haq, M. (2017). Effects of staff participation, morale, and shortage on organisational performance: An international survey. Issues in Educational Research, 27(4), 677.
Chepkemoi, J. (2018). Effect of Incentives on Employee Performance At Kenya Forest Service Uasin Gishu County, IOSR Journal of Business and Management (IOSR-JBM), 20(3), 26-32.
Chrp, Y. B. (2018). The Effect of Counterproductive Work Behavior (CWB) And Organizational Citizenship Behavior (OCB) on Employee Performance With Employee Engagement As Intervening Variable, IOSR Journal of Business and Management (IOSR-JBM), 20(2), 83-89.
Eliophotou Menon, M. (2014). The relationship between transformational leadership, perceived leader effectiveness and teachers’ job satisfaction. Journal of Educational Administration, 52(4), 509-528.
Gulluce, A. Ç., Kaygin, E., Kafadar, S. B., & Atay, M. (2016). The Relationship between Transformational Leadership and Organizational Commitment: A Study on the Bank Employees. Journal of Service Science and Management, 9(03), 263.
Gyawali, A. (2017). Impact of Employee Participation on Job Satisfaction, Employee Fairness Perception and Organizational Commitment: A Case of Nepalese Commercial Banks. Saptagandaki Journal, 8, 1-13.
Howladar, M. H. R., Rahman, S., & Uddin, A. (2018). Deviant Workplace Behavior and Job Performance: The Moderating Effect of Transformational Leadership. Iranian Journal of Management Studies, 11(1), 147-183.
Jha, S. (2014). Transformational leadership and psychological empowerment: Determinants of organizational citizenship behavior. South Asian Journal of Global Business Research, 3(1), 18-35.
Khalili, A. (2017). Transformational leadership and organizational citizenship behavior: The moderating role of emotional intelligence. Leadership & Organization Development Journal, 38(7), 1004-1015.
Khan, A., Ahmed, S., Paul, S., & Kazmi, S. H. A. (2017). Factors Affecting Employee Motivation Towards Employee Performance: A Study on Banking Industry of Pakistan. In International Conference on Management Science and Engineering Management (pp. 615-625). Springer, Cham.
Kumari, P., & Thapliyal, S. (2017). Studying the Impact of Organizational Citizenship Behavior on Organizational Effectiveness. Human Resource Management, 4(1), 9-21.
Kuruppuge, R. H., & Gregar, A. (2017). The Power of Psychological Ownership in the Longevity of Family Businesses. Journal of Innovation Management in Small & Medium Enterprises, 2017(2017), 1-9.
Lazauskaite-Zabielske, J., Urbanaviciute, I., & Rekasiute Balsiene, R. (2018). From psychosocial working environment to good performance: the role of work engagement. Baltic Journal of Management, 13(2), 236-249.
Lu, L., Liu, J., & Zhao, N. (2017). Why employees stay: the roles of psychological ownership, territoriality and work relationship closeness in affecting employee turnover intention. Frontiers of Business Research in China, 11(1), 187-207.
Luu, T. T. (2017). CSR and organizational citizenship behavior for the environment in hotel industry: The moderating roles of corporate entrepreneurship and employee attachment style. International Journal of Contemporary Hospitality Management, 29(11), 2867-2900.
Ma'aden. (2014). Availavle At: http://www.sulphuric-acid.com/sulphuric-acid-on-the-web/acid%20plants/Maaden%20Phosphate%20Company.htm.
Mahsud, M., & Hao, J. (2017). Measurement and comparison of psychological ownership in public and private service organizations. In Service Systems and Service Management (ICSSSM), 2017 International Conference on (pp. 1-6). IEEE.
Masa'deh, R. E., Obeidat, B. Y., & Tarhini, A. (2016). A Jordanian empirical study of the associations among transformational leadership, transactional leadership, knowledge sharing, job performance, and firm performance: A structural equation modelling approach. Journal of Management Development, 35(5), 681-705.
Massoudi, A. H., & Hamdi, S. S. A. (2017). The Consequence of work environment on Employees Productivity. Journal of Business and Management, 1(3), 35-42.
Merriman, K. K., Sen, S., Felo, A. J., & Litzky, B. E. (2016). Employees and sustainability: the role of incentives. Journal of Managerial Psychology, 31(4), 820-836.
Mobbs, P. M., Taib, M., & Wallace, G. J. (2012). The Mineral Industries of the Middle East. Minerals Yearbook, 2010, V. 3, Area Reports, International, Africa and the Middle East, 10.
Mokhniuk, A. M. (2016). The Impact of Monetary Rewards on the Motivation of Employees. Roczniki Ekonomiczne Kujawsko-Pomorskiej Szkoły Wyższej w Bydgoszczy, (9), 336-346.
Mustafa, M., Martin, L., & Hughes, M. (2016). Psychological ownership, job satisfaction, and middle manager entrepreneurial behavior. Journal of Leadership & Organizational Studies, 23(3), 272-287.
Nabi, M. N., Islam, M., Dip, T. M., & Hassain, A. A. (2017). Impact of motivation on employee performances: a case study of Karmasangsthan bank Limited, Bangladesh. International Journal of Business and Management, 5(4), 57-78.
O'Connor, F. A., Lucey, B. M., Batten, J. A., & Baur, D. G. (2015). The financial economics of gold—a survey. International Review of Financial Analysis, 41, 186-205.
Odero, J. A., & Makori, M. E. (2018). Employee involvement and employee performance: the case of part time lecturers in public universities in kenya. International Journal of Management and Commerce Innovations, 5(2), 1169-1178.
Potdar, B., Guthrie, J., Gnoth, J., & Garry, T. (2018). The role of psychological ownership in shoplifting prevention: An exploratory study. Journal of Retailing and Consumer Services, 44, 253-265.
PratimaSarangi, D., & Nayak, B. (2018). Employee Engagement and Its Impact on Organizational Success–A Study in Manufacturing Company, India, OSR Journal of Business and Management (IOSR-JBM), 18(4), 52-57.
Rahman, W., Shah, F. A., & Rasli, A. (2015). Use of structural equation modeling in social science research. Asian Social Science, 11(4), 371.
Raziq, A., & Maulabakhsh, R. (2015). Impact of working environment on job satisfaction. Procedia Economics and Finance, 23, 717-725.
Redmond, M. V. (2015). Social Exchange Theory, English Technical Reports and White Papers.
Rezaei, M. R., & Beheshtifar, M. (2017). Promoting Psychological Ownership through Job Enthusiasm. Pal. Jour., 16(2), 296-301.
Shahin, A., Shabani Naftchali, J., & Khazaei Pool, J. (2014). Developing a model for the influence of perceived organizational climate on organizational citizenship behaviour and organizational performance based on balanced score card. International Journal of Productivity and Performance Management, 63(3), 290-307.
Singh, P., & Twalo, T. (2015). Mismanaging unethical behaviour in the workplace. Journal of Applied Business Research, 31(2), 515.
Strukan, E., Nikolić, M., & Sefić, S. (2017). Impact of transformational leadership on business performance, Tehnički vjesnik 24, 2(2017), 435-444.
Taty, S., & Basir, M. (2018). The Effect of Leadership Style, Work Environment and Organization Culture on Employee Performance: A Case Study at Kawasan Industri Makassar (Kima), Indonesia, IOSR Journal of Business and Management (IOSR-JBM), 18(10), 49-55.
Veliu, L., Manxhari, M., Demiri, V., & Jahaj, L. (2017). The influence of leadership styles on employee's performance. Management (16487974), 31(2).
Zeng, W., Zhou, Y., & Shen, Z. (2018). Dealing with an abusive boss in China: The moderating effect of promotion focus on reward expectancy and organizational citizenship behavior. International Journal of Conflict Management. 29(4), 500-518.
Aledeinat, M., & Alrfou, H. (2017). The Effects of Organizational Support and Organizational Commitment on Organizational Citizenship Behaviour: (A Conceptual Framework). International Journal of Management Sciences and Business Research, 6(5), 1-9.
ALHussain, A. Z. (2011). Barriers to knowledge management in Saudi Arabia. The George Washington University.
Alqatawenah, A. S. (2018). Transformational leadership style and its relationship with change management. Business: Theory and Practice, 19, 17.
Bacha, E. (2014). The relationship between transformational leadership, task performance and job characteristics. Journal of Management Development, 33(4), 410-420.
bakhit Al Zefeiti, S. M. (2017). The Influence of Transformational Leadership Behaviours on Organizational Commitment in Omani Governmental Organizations. International Journal of Business and Management, 12(4), 111.
Bakotić, D. (2016). Relationship between job satisfaction and organisational performance. Economic research-Ekonomska istraživanja, 29(1), 118-130.
Bushiri, C. P. (2014). The impact of working environment on employees’ performance, the case of Institute of Finance Management in Dar es Salaam (Doctoral dissertation, The Open University of Tanzania).
Butali, P., & Njoroge, D. (2018). Effect of Employee Participation on Organizational Performance with Organizational Commitment as a Moderator. International Journal of Scientific Research and Management, 6(06).
Chandani, A., Mehta, M., Mall, A., & Khokhar, V. (2016). Employee engagement: A review paper on factors affecting employee engagement. Indian Journal of Science and Technology, 9(15).
Cheema, J. R., & Asrar-ul-Haq, M. (2017). Effects of staff participation, morale, and shortage on organisational performance: An international survey. Issues in Educational Research, 27(4), 677.
Chepkemoi, J. (2018). Effect of Incentives on Employee Performance At Kenya Forest Service Uasin Gishu County, IOSR Journal of Business and Management (IOSR-JBM), 20(3), 26-32.
Chrp, Y. B. (2018). The Effect of Counterproductive Work Behavior (CWB) And Organizational Citizenship Behavior (OCB) on Employee Performance With Employee Engagement As Intervening Variable, IOSR Journal of Business and Management (IOSR-JBM), 20(2), 83-89.
Eliophotou Menon, M. (2014). The relationship between transformational leadership, perceived leader effectiveness and teachers’ job satisfaction. Journal of Educational Administration, 52(4), 509-528.
Gulluce, A. Ç., Kaygin, E., Kafadar, S. B., & Atay, M. (2016). The Relationship between Transformational Leadership and Organizational Commitment: A Study on the Bank Employees. Journal of Service Science and Management, 9(03), 263.
Gyawali, A. (2017). Impact of Employee Participation on Job Satisfaction, Employee Fairness Perception and Organizational Commitment: A Case of Nepalese Commercial Banks. Saptagandaki Journal, 8, 1-13.
Howladar, M. H. R., Rahman, S., & Uddin, A. (2018). Deviant Workplace Behavior and Job Performance: The Moderating Effect of Transformational Leadership. Iranian Journal of Management Studies, 11(1), 147-183.
Jha, S. (2014). Transformational leadership and psychological empowerment: Determinants of organizational citizenship behavior. South Asian Journal of Global Business Research, 3(1), 18-35.
Khalili, A. (2017). Transformational leadership and organizational citizenship behavior: The moderating role of emotional intelligence. Leadership & Organization Development Journal, 38(7), 1004-1015.
Khan, A., Ahmed, S., Paul, S., & Kazmi, S. H. A. (2017). Factors Affecting Employee Motivation Towards Employee Performance: A Study on Banking Industry of Pakistan. In International Conference on Management Science and Engineering Management (pp. 615-625). Springer, Cham.
Kumari, P., & Thapliyal, S. (2017). Studying the Impact of Organizational Citizenship Behavior on Organizational Effectiveness. Human Resource Management, 4(1), 9-21.
Kuruppuge, R. H., & Gregar, A. (2017). The Power of Psychological Ownership in the Longevity of Family Businesses. Journal of Innovation Management in Small & Medium Enterprises, 2017(2017), 1-9.
Lazauskaite-Zabielske, J., Urbanaviciute, I., & Rekasiute Balsiene, R. (2018). From psychosocial working environment to good performance: the role of work engagement. Baltic Journal of Management, 13(2), 236-249.
Lu, L., Liu, J., & Zhao, N. (2017). Why employees stay: the roles of psychological ownership, territoriality and work relationship closeness in affecting employee turnover intention. Frontiers of Business Research in China, 11(1), 187-207.
Luu, T. T. (2017). CSR and organizational citizenship behavior for the environment in hotel industry: The moderating roles of corporate entrepreneurship and employee attachment style. International Journal of Contemporary Hospitality Management, 29(11), 2867-2900.
Ma'aden. (2014). Availavle At: http://www.sulphuric-acid.com/sulphuric-acid-on-the-web/acid%20plants/Maaden%20Phosphate%20Company.htm.
Mahsud, M., & Hao, J. (2017). Measurement and comparison of psychological ownership in public and private service organizations. In Service Systems and Service Management (ICSSSM), 2017 International Conference on (pp. 1-6). IEEE.
Masa'deh, R. E., Obeidat, B. Y., & Tarhini, A. (2016). A Jordanian empirical study of the associations among transformational leadership, transactional leadership, knowledge sharing, job performance, and firm performance: A structural equation modelling approach. Journal of Management Development, 35(5), 681-705.
Massoudi, A. H., & Hamdi, S. S. A. (2017). The Consequence of work environment on Employees Productivity. Journal of Business and Management, 1(3), 35-42.
Merriman, K. K., Sen, S., Felo, A. J., & Litzky, B. E. (2016). Employees and sustainability: the role of incentives. Journal of Managerial Psychology, 31(4), 820-836.
Mobbs, P. M., Taib, M., & Wallace, G. J. (2012). The Mineral Industries of the Middle East. Minerals Yearbook, 2010, V. 3, Area Reports, International, Africa and the Middle East, 10.
Mokhniuk, A. M. (2016). The Impact of Monetary Rewards on the Motivation of Employees. Roczniki Ekonomiczne Kujawsko-Pomorskiej Szkoły Wyższej w Bydgoszczy, (9), 336-346.
Mustafa, M., Martin, L., & Hughes, M. (2016). Psychological ownership, job satisfaction, and middle manager entrepreneurial behavior. Journal of Leadership & Organizational Studies, 23(3), 272-287.
Nabi, M. N., Islam, M., Dip, T. M., & Hassain, A. A. (2017). Impact of motivation on employee performances: a case study of Karmasangsthan bank Limited, Bangladesh. International Journal of Business and Management, 5(4), 57-78.
O'Connor, F. A., Lucey, B. M., Batten, J. A., & Baur, D. G. (2015). The financial economics of gold—a survey. International Review of Financial Analysis, 41, 186-205.
Odero, J. A., & Makori, M. E. (2018). Employee involvement and employee performance: the case of part time lecturers in public universities in kenya. International Journal of Management and Commerce Innovations, 5(2), 1169-1178.
Potdar, B., Guthrie, J., Gnoth, J., & Garry, T. (2018). The role of psychological ownership in shoplifting prevention: An exploratory study. Journal of Retailing and Consumer Services, 44, 253-265.
PratimaSarangi, D., & Nayak, B. (2018). Employee Engagement and Its Impact on Organizational Success–A Study in Manufacturing Company, India, OSR Journal of Business and Management (IOSR-JBM), 18(4), 52-57.
Rahman, W., Shah, F. A., & Rasli, A. (2015). Use of structural equation modeling in social science research. Asian Social Science, 11(4), 371.
Raziq, A., & Maulabakhsh, R. (2015). Impact of working environment on job satisfaction. Procedia Economics and Finance, 23, 717-725.
Redmond, M. V. (2015). Social Exchange Theory, English Technical Reports and White Papers.
Rezaei, M. R., & Beheshtifar, M. (2017). Promoting Psychological Ownership through Job Enthusiasm. Pal. Jour., 16(2), 296-301.
Shahin, A., Shabani Naftchali, J., & Khazaei Pool, J. (2014). Developing a model for the influence of perceived organizational climate on organizational citizenship behaviour and organizational performance based on balanced score card. International Journal of Productivity and Performance Management, 63(3), 290-307.
Singh, P., & Twalo, T. (2015). Mismanaging unethical behaviour in the workplace. Journal of Applied Business Research, 31(2), 515.
Strukan, E., Nikolić, M., & Sefić, S. (2017). Impact of transformational leadership on business performance, Tehnički vjesnik 24, 2(2017), 435-444.
Taty, S., & Basir, M. (2018). The Effect of Leadership Style, Work Environment and Organization Culture on Employee Performance: A Case Study at Kawasan Industri Makassar (Kima), Indonesia, IOSR Journal of Business and Management (IOSR-JBM), 18(10), 49-55.
Veliu, L., Manxhari, M., Demiri, V., & Jahaj, L. (2017). The influence of leadership styles on employee's performance. Management (16487974), 31(2).
Zeng, W., Zhou, Y., & Shen, Z. (2018). Dealing with an abusive boss in China: The moderating effect of promotion focus on reward expectancy and organizational citizenship behavior. International Journal of Conflict Management. 29(4), 500-518.
Published
2020/08/03
Section
Original Scientific Paper