Transformational Leadership Style And Organizational Culture Management Essay

Transformational leaders Style And organisational Culture Management EssayThis quantitative seek investigates the family amid transformational leading room organisational conclusion with organizational commission and trouble contentment in field cover mickle in Libya. The literature supported the kinship in the midst of these variables and the kindred amongst these variables was investigated by distinct approaches. However, in the current subject area the researcher uses transformational drawshiphip flare which introduced by thick as a independent variable and quaternion types of organizational acculturation much(prenominal) as Clan, Hierarchy, Adhocracy, Market and which introduced by Cameron and Quinn in 1999 as a mediator variable, speckle the three dimensions of organizational consignment such as Affective, Normative and Continuance loyalty which introduced by Meyer and Allen in 1991 and telephone circuit satisfaction as dependent variables.The ob jectives of this research are Firstly, to determine the spirit of the family between transformational leading style with organizational consignment (affective, normative and continuance) in national crude embrocate lot in Libya. Secondly, to determine the nature of the relationship between transformational lead style with patronage satisfaction in subject field embrocate stomach in Libya. Thirdly, to determine the nature of the relationship between transformational leaders style with organizational culture (Clan, Market, hierarchy and adhocratic) in National crude potbelly stove in Libya. Fourthly, to determine the effect of Organizational culture (Clan, Market, hierarchy and adhocratic) on the relationship between transformational leading style with organizational committal (affective, normative and continuance) in National anele Corporation in Libya. fifthly, to determine the effect of Organizational culture (Clan, Market, hierarchy and adhocratic) on the relatio nship between transformational leadership style with job satisfaction in National oil color Corporation in Libya. Lastly, to determine the nature of the relationship between organizational commitment (affective, normative and continuance) with job satisfaction in National inunct Corporation in Libya.To strike these aims 4 instruments ordain use in this research such as Multifactor Leadership Questionnaire (MLQ) uses to test employee opinions about leadership style, Organizational Culture Assessment Instrument (OCAI) uses to measure Organizational Culture, (TCOCQ) Three Components Organizational Commitment Questionnaire uses to measure Organizational Commitment and (JSS) Job Satisfaction Survey to measure Job Satisfaction in National Oil Corporation in Libya. The pilot mull over maintain that these instruments were suitable for this research because the result of the Cronbachs alpha reli baron coefficients for the transformational leadership style, organizational culture, orga nizational commitment and job satisfaction are more than 0.70.The nature of the data and the relationship between the method and the research objectives are considered as the basis for selecting the right statistical methods. Therefore, this contract used what is relevant to the research question and framework. The statistical methods will be used in this study consist of Descriptive analysis, Inferential analysis, Correlation, and Multiple analogue regression. The findings from this study will excessively provide some useful breeding of leadership style in oil sector in Libya to umteen researchers and managers with the opportunity to gain and enhance their knowledge in this field, and will be abide building knowledge and an redeing in this field in National Oil Corporation in Libya insha Allah.CHAPTER ONEINTRODUCTION1.1 Background of the studyLibya is a element of the Organization of Petroleum Exporting Countries (OPEC) and holds the largest proven oil reserves in Africa. L ibya has attracted hydrocarbon exploration since 1956, when the first wildcat oil well was drilled onshore in the Sirte Basin. Libya granted multiple concessions to Esso, Mobil, Texas Gulf, and new(prenominal)s, resulting in major oil discoveries by 1959. The brass dominates Libyas economy through control of oil resources, which account for approximately 95% of export earnings, 75% of government receipts, and over 50% of GDP. The National Oil Corporation was established in 1970. It dominates Libyas oil industry, along with a number of smaller subsidiaries, which combined account for around half of the countrys oil output. Figure 1.1the map of Libya describes fuck up Pipeline, Oil Pipeline, Oil Field, Liquefied Gas Planet Oil Terminal (Oil Exporting harbor) and Petroleum refining which consume and controlled by National Oil Corporation in Libya.http//www.odysseydawn.com/libya-oil-map.jpgFigure 1.1 Map of Libya describes Gas Pipeline, Oil Pipeline, Oil Field, Liquefied Gas Planet Oil Terminal (Oil Exporting harbor) and Petroleum refining which owned and controlled by National Oil Corporation in Libya.Source http//www.google.com.my/images (8-4-2011)National Oil Corporation is carrying out exploration and production operations through its own affiliated companies, or in participation with other companies under service contracts or any other kind of fossil oil investment agreements. This is in summing up to selling operations of oil and gas, locally and abroad. NOC has its own fully owned companies which carry out exploration, development and production operations, in addition to local and supranational marketing companies. NOC also has participation agreements with specialized world(prenominal) companies. Such agreements throw off developed into exploration and production sharing agreements, in accordance with the development of the international oil and gas industry, and international petroleum marketing. The National Oil Corporation of Libya (NOC) is a state-owned company that controls Libyas oil and gas production. The company is the biggest oil producer in Africa. Its mandate was to endeavor to promote the Libyan economy by undertaking development, direction and exploitation of oil resources as well as by fighting(a) in planning and executing the general oil policy of the state.The Brega Petroleum Marketing Company, a subsidiary of NOC, was set up to carry out the marketing activities of NOC, and the marketing assets of all the foreign oil companies were nationalized. A point of that during the past four decades, the impact of leadership styles on organizational performance has been a study of interest among academics and practitioners working in the area of leadership (Darwish, 1998 Sadler, 2003 Rowe et al., 2005 Gadot,2007 Yiing, and Zaman Ahmad, 2009). The researcher would like to examine how leadership style put to works organization performance in Libya in (NOC). Rowe et al (2005) pointed out that the to the highest d egree prominent reason for this interest is the widespread belief that leadership croupister affect organizations performance (Jing and Avery, 2008).In addition, the creation of a state-owned oil company allowed Libya to follow in the footsteps of other oil-producing economies, where control of such a revenue-generating resource lay with the government. Soon after its establishment, NOC signed a vocalise venture agreement with the U.S. Occidental Petroleum involving production-sharing. In 1971, NOC arranged a processing deal with Sincat of Italy for refining oil products for domestic consumption, thitherby providing a seamy supply of oil for internal Libyan consumption. A joint drilling company was formed with Saipem, a subsidiary of the Italian ENI, in early 1972. By April 1974, production-sharing agreements had been reached with Exxon, Mobil, Compagnie Franaise des Ptroles, Elf Aquitaine, and Agip. By using the surplus funds and technical expertise of the foreign oil companies , the problem of stimulating investment in exploration was resolved. In 1980, the Libyan Arabian Gulf Oil Company (Agoco) was established by NOC through the amalgamation of the Arabian Gulf Exploration Company, Umm-al-Jawabi Oil Company, and direct NOC exploration and production interests. NOC continued to bother production-sharing agreements. In 2004, NOCs estimated crude oil output was 1.623 million barrels per day. The company hoped to raise its production to deuce million barrels per day by 2007. Figure 1.2 below shows the revenue of National Oil Corporation in Libya from (1999 to 2009).Figure 1.2 Libyas Oil Production (1999-2009) in million barrels per daySource British Petroleum, BP Statistical Review of World Energy June (2010)This study set out to investigate whether there is an interrelationship between transformational leadership style and organizational culture, and the effect of organizational culture on the relationship between transformational leadership style with o rganizational commitment and job satisfaction in the National Oil Corporation in Libya. In particular, our knowledge would benefit from an understanding of how leadership and organizational culture affect job satisfaction and organizational commitment. The study examines Libya National Oil Corporation in relation to leadership style in the organization. Thus, the study also would like to look for an organizational culture of the National Oil Corporation and finally how does leadership style in particular transformational leadership style may ferment the National Oil Corporation progresses.The subject of leadership is interesting for many researchers. In addition, the continued search for good leaders has resulted in the development of many leadership theories (Mosadegh and Yarmohammadian, 2006). According to Oluseyi and Ayo (2009) Leadership is a central feature of organizational performance. This is an essential part of management activities of deal and directing their efforts t owards the goals and objectives of the organization. There must be an attach form of behavior to enhance performance. Leadership might be viewed in terms of the role of the leaders and their ability to achieve effective performance from others. In recent years, leadership has been studied in various ways, depending on the researchers methodological preferences and definition of leadership (Chen, 2002 Reuvers, et al., 2008 Gadot, 2007).Oluseyi and Ayo (2009) defined Leadership as the moral and intellectual ability to visualize and work for what is best for the company and its employees. Good management and effective leadership help to develop team work and the integration of individual and congregation goals. On the other hand, Kenny and Zaccaro (1983) suggested that leaders to be successful need a behavioral repertoire and the ability to select the right role for the situation. To do this, leaders need both cognitive and behavioral complexity and flexibility a leader needfully th e ability to perceive the needs and goals of a constituency and the ability to even off ones personal approach to group action (Leban and Zulauf 2004).Therefore, Mosadeghrad et al (2006) pointed out that while there are several styles of leadership such as autocratic, bureaucratic, laissez-faire, charismatic, democratic, participative, situational, transactional, and transformational leadership. Not everyone agrees that a particular style of leadership will result in the most effective form of organizational behavior. Different styles were needed for several(predicate) situations and each leader needed to know when to exhibit a particular approach. No one leadership style is ideal for every situation, since a leader may fuddle knowledge and skills to act effectively in one situation but may not emerge as effectively in a different situation.In contrast, Darwish (1998) pointed out that there is wide disagreement among scholars with regard to effective leadership style. For instanc e, Brozik (1994) argues that no one type of leadership style is the best in all situations. The leader, subordinates and the environment or the task determine the effectiveness or ineffectiveness of each style Kur (1995) believes that effectiveness in leading is directly cerebrate to the leaders way of thinking about him, subordinates, organization and environment. Likert (1977) argue that the participative style is more productive in any culture.In the last three decades many scholars had received increasing attention to two new paradigms called transformational leadership and transactional leadership where the interests of the study are. It added a new dimension to organizational studies, namely the visionary eyeshot of leadership and the emotional involvement of employees within an organization. The basic notion is that a visionary leader can create an impression that he has high competence and a vision to achieve success (Jing and Avery, 2008). According to Bass (1985) develo ped a theory of visionary or transformational leadership whereby the leader inspires and activates subordinates to perform beyond normal expectations (Jing and Avery, 2008). The study would like to examine this in National Oil Corporation in Libya.On other hand, Lowe et al., (1996) pointed out that there are four dimensions of transformational leadership style such as Idealized make up ones mind or charisma, inspirational motivation, intellectual stimulation, and individualized consideration. (Bass et al., 2003 Piccolo and Colquitt, 2006), defined these dimensions for transformational leadership as followsa. Idealized influence or Charisma is the story to which leaders behave in such a charismatic way that followers identify with them.b. Inspirational motivation is the stratum to which leaders articulate visions for the future that appeal to followers.c. Intellectual stimulation is the degree to which leaders challenge assumptions, take risks, and solicit followers ideas.d. Indiv idualized consideration is the degree to which leaders attend to followers needs, act as mentors or coaches, and listen to followers concerns.Bass, (1985), Burns (1978) Leadership is considered a factor that has a major influence on the performance of organizations, managers and employees. More recently, researchers have focused mainly on the subordinates perspective and proposed two main facets of leadership transactional and transformational. This theory suggests that transformational leadership, more than transactional leadership, has a stronger positivistic effect on employees attitudes towards their job, their job environment, and ultimately affects their work performance.Oluseyi and Ayo (2009) pointed out that leadership is a central feature of organizational performance. This is an essential part of management activities of pack and directing their efforts towards the goals and objectives of the organization. There must be an appropriate form of behavior to enhance performa nce. Leadership might be viewed in terms of the role of the leaders and their ability to achieve effective performance from others. On the other hand, Xenikou and Simosi (2006) suggested that organizational culture and transformational leadership have been theoretically and empirically linked to organizational effectiveness. During the nineties a number of comparative studies on the culture-performance link showed that certain culture orientations are conducive to performance.Lok and Crawford (2004) pointed out that organizational culture can influence how people set personal and professional goals, perform tasks and administer resources to achieve them. Organizational culture affects the way in which people consciously and subconsciously think make decisions and ultimately the way in which they perceive. slice other researchers has suggested that organizational culture can exert considerable influence in organizations particularly in areas such as performance and commitment.Bass (1985) said that transformational leaders frequently change their organizations culture with a new vision and revision of its shared assumptions values and norms. In a transformational culture, there is generally a sense of purpose and a feeling of family. Superiors feel a personal obligation to help new members plunge into the culture. Assumptions, norms, and values do not preclude individuals from pursuing their own goals and rewards. In addition, Bass (1985) mentioned that transformational qualities lead to performance beyond expectations in organizational settings. A study of Ogbonna and Harris (2000) organizational culture and leadership finds that the two areas have been independently linked to organizational performance.A little critical research attention has been devoted to understand the links between the leadership and culture also and the impact that such an association might have on organizational performance (Ogbonna and Harris, 2000). Organizational commitment is an fundamental employee attribute from the organizations perspective. Several studies have found relationships between high-commitment human resource policies and positive organizational outcomes such as productiveness, quality, and profitability (Perryer and Jordan 2005).Organizational commitment has been studied in relation to employee performance there is still considerable controversy surrounding the precise nature of the relationship. While there is some recite to suggest that organizational commitment is a mediating variable between leadership and performance. Consequently, studies that examine the complex relationships and interaction between these variables will be of value to management theorists and practitioners.Lok and Crawford (2004) said that organizational commitment and job satisfaction have received significant attention in studies of the work place. This is due to the general recognition that these variables can be the major determinants of organizational performanc e and effectiveness. A numerous of studies in the area of job satisfaction and organizational commitment have been asserted that leadership and organizational culture have significant impact on both job satisfaction and organizational commitment (Chen and Francesco, 2000 Mathieu and Zajac, 1990 Williams and Hazer, 1986).Lok and Crawford (2004) had the same result in his research which has been done to make comparative between Hong Kong and Australian managers the result confirms that organizational culture and leadership styles are important organizational antecedents of job satisfaction and commitment. However, the influence of national culture on leadership styles, organizational culture and their subsequent effects on employees job satisfaction and organizational commitment were not researchd intensively enough in National Oil Corporation in Libya.To choose National Oil Corporation in Libya for the current study because Libya is a member of the Organization of Petroleum Exportin g Countries (OPEC). It holds the largest proven oil reserves in Africa which make it as one of the most important oil-producing countries in Africa and in the world. Therefore, petroleum sector in Libya is very important sector which is like the backbone of Libyan economy. In this context, National Oil Corporation of Libya (NOC) is a state-owned company that controls Libyas oil and gas production. The company is the biggest oil producer in Africa. Its mandate was to endeavor to promote the Libyan economy by undertaking development, management and exploitation of oil resources as well as by participating in planning and executing the general oil policy of the state.In additionally, the study expected to offering some useful information of leadership style in National Oil Corporation in Libya, and hopes that this useful information can help to contribute building knowledge and an understanding in this filed in National Oil Corporation in Libya.1.2 Purpose of Research StudyThe purpose of this study is to explore the relationship between transformational leadership, organizational culture, with job satisfaction and organizational commitment in National Oil Corporation in Libya. Cameron and Quinn (1999) pointed out that numerous studies story the most frequent reason given for the failure of planned organizational change was due to a neglect of the organizational culture.According to Schneider (2000) Organizational culture is a key to organizational success, and effective leadership is the means by which the culture is created and managed. Understanding organizational culture is an important activity for managers because it affects strategic development, productivity and learning at all levels of management (Twati and Gammack, 2006).The relationship between transformational leadership style and organizational culture was examined by some researchers such as Xenikou and Simosi (2006), who asserted in his study that organizational culture had direct impact on organ ization performance while transformational leadership had indirect positive influence on performance through its impact achievement orientation. This study showed that organizational culture mediates the effect of transformational leadership on performance. Therefore, the purpose of the study is to accept or contemn the suppositions that there is a relationship between transformational leadership style organizational culture with job satisfaction and organization commitment in National Oil Corporation in Libya.Therefore, Yiing and Bin Ahmad (2009) pointed out that leaders behaviors have positive and significant relationship with organizational commitment. On the other hand, cultures have significant moderate effects on the relationship between leadership behaviors and organizational commitment. However, the main academic purpose of this study is to make a contribution in leadership field behaviors on culture and on organization behavior in the petroleum sector in Libya.1.3 Problem StatementThe oil sector is the most important sector in Libya. Libya is one of the most important oil-producing countries in Africa and in the world and that the interest in this sector is very important. Therefore, this sector needs professionals leaders who can achieve all the goals of both employees and organization. An organization short on capital can borrow money, and one with a poor attitude can move. But an organization short on leadership has little chance for survival (Darwish, 1998). A set of characteristics that help leaders to achieve the plans, programs, policies and outline that have been developed and the advancement of their respective organizations. The most important of these characteristics experience, decision-making, knowledge and to deal with the environmental variables that may occur both within and outside the organization.The flunk of these skills and characteristics makes it difficult for leaders to carry out its functions and achieve organizations goal s. Therefore, Chen (2002) found that transformational leadership behaviors have a slightly positive relationship with organizational commitment. While Harris and Mossholder (1996), pointed out that organizational culture stands as the center from which all other factors of human resource management derive. It is believed to influence individuals attitudes concerning outcomes, such as commitment, motivation, morale, and satisfaction.In addition, Bass (1985) have mentioned that demonstrates the relationship between leadership and culture by examining the impact of different styles of leadership on culture. He argues that transformational leaders frequently work towards ever-changing the organizational culture in line with their vision. Similarly, Brown (1992) observes that good leaders need to develop the skills that enable them to alter aspects of their culture in order to correct their organizational performance.The leaders of National Oil Corporation have to know that organization al culture, organization commitment and job satisfaction are very important factors can help them to achieve the goals of the organization, and these variables enhance organization performance. In short, and based to what has been mentioned preceding(prenominal), this study is trying to clarify the relationship between transformational leadership style organizational culture with job satisfaction and organizational commitment in National Oil Corporation in Libya. Which the researcher believes it does not exist in Libya National Oil Corporation. Specifically, the relationship between transformational leadership style organizational culture with job satisfaction and organizational commitment and how organizational culture effect the relationship between transformational leadership style with organizational commitment and job satisfaction in National Oil Corporation in Libya.The research questions are as follows1. Is there any relationship between transformational leadership style or ganizational commitment (affective, normative and continuance) in National Oil Corporation in Libya?2. Is there any relationship between transformational leadership style job satisfaction in National Oil Corporation in Libya?3. Is there any relationship between transformational leadership style with organizational culture (Clan, Market, hierarchy and adhocracy) in National Oil Corporation in Libya?4. Does Organizational culture (Clan, Market, hierarchy and adhocracy) have any effect on the relationship between transformational leadership style with organizational commitment (affective, normative and continuance) in National Oil Corporation in Libya?5. Does Organizational culture (Clan, Market, hierarchy and adhocracy) have any effect on the relationship between transformational leadership style with job satisfaction in National Oil Corporation in Libya?6. Is there any relationship between organizational commitment (affective, normative and continuance) with job satisfaction in Natio nal Oil Corporation in Libya?1.4 Focus and Research ObjectivesThe overall objective of this study is to examine the role of leadership style in the National Oil Corporation in Libya. The specific objective in this study is to clarify the relationship between transformational leadership style with job satisfaction and organizational commitment while organizational culture is the mediate variable in the National Oil Corporation in Libya. The study expected to offer some useful information of leadership style in oil sector in Libya, and hopes that this useful information can help to contribute building knowledge and an understanding in this filed in National Oil Corporation in Libya.The breakdown of these objectives yields the following specific objectives1. To determine the nature of the relationship between transformational leadership style with organizational commitment (affective, normative and continuance) in National Oil Corporation in Libya.2. To determine the nature of the rela tionship between transformational leadership style with job satisfaction in National Oil Corporation in Libya.3. To determine the nature of the relationship between transformational leadership style with organizational culture (Clan, Market, hierarchy and adhocracy) in National Oil Corporation in Libya.4. To determine the effect of organizational culture (Clan, Market, hierarchy and adhocracy) on the relationship between transformational leadership style with organizational commitment (affective, normative and continuance) in National Oil Corporation in Libya.5. To determine the effect of organizational culture (Clan, Market, hierarchy and adhocracy) on the relationship between transformational leadership style with job satisfaction in National Oil Corporation in Libya.6. To determine the nature of the relationship between organizational commitment (affective, normative and continuance) with job satisfaction in National Oil Corporation in Libya.1.5 Rationale of StudyPrevious studies have examined the link between leadership paradigms and behaviors and have shown a positive relationship, none has explained the nature of this connection, and therefore, how and why leadership affects performance. Future research needs to address this deficiency. In sum, based on the above discussion, there are many problems and gaps in existing studies of the leadership performance relationship that need to be addressed before a clear enactment of this relationship can be drawn (Jing and Avery, 2008).Therefore, the aim of this study is to investigate the relationship between transformational leadership, organizational culture with job satisfaction and organizational commitment in the Notional Oil Corporation in Libya. Therefore, the topic of leadership is very important to the organization performance and the entire petroleum sector. Leaders can set the direction of the organization and it is very significance issue can lead the organization to achieve their goals.To do this stu dy in the Notional Oil Corporation in Libya because Libya is the one of the (OPEC) organization and this sector is very important which is like the backbone of Libyan economy. Therefore, organization culture influences organization performance and also the employees. Organization culture influence perceptions of employees towards investors of technology transfer. Additionally, try to add useful information to improve our knowledge for this field in Libya.1.6 Significance of StudyThis study is important for several reasons, to make a positive view of transformational leadership style in the National Oil Corporation in Libya. To clarify the problems and barriers encountered in application of transformational leadership style programs in the National Oil Corporation in Libya in the context to the case included in this study.In addition, to clarify the role of leadership to improve organization performance in the National Oil Corporation in Libya and to what extent this leadership succe eded to achieve organizations goals. On the other hand, this study is an attempt to participate in and contribute to research resulting in knowledge increases. Assist scholars, and other researches in leadership field.The researcher achieved that the leadership style and organizational culture play a significant role to effect organizational commitment and job satisfaction in National Oil Corporation in Libya. In particular, how transformational leadership style and organizational culture can impact organizational commitment and job satisfaction in National Oil Corporation in Libya. Finally, the researcher achieved the nature of the relationship between all these concepts such as transformational leadership style, organizational culture, job satisfaction and organizational commitment in National Oil Corporation in Libya.1.7 Definition of Terms1.7.1 LeadershipLeadership, like most other concepts in social sciences, has no hotshot or unique definition. It has been defined differently by different authors. Leadership is defined as the process of influencing employees to work toward the achievement of objectives. While others defined leadership as a management function, which is mostly directed towards people and social interaction, as well as the process of influencing people so that they will achieve the goals of the organization.1.7.2 Leadership StyleLeadership style is the way to understand why leaders, faced with seemingly identical situations, use such different decision processes. Leadership style can be viewed as a series of managerial attitudes, behaviors, characteristics and skills based on individual and organizational values, leadership interests and reliability of employees in different situations. In the other meaning, it is the ability of a leader to influence subordinates to performing at their highest capability.1.7.3 Transformational leadershipTransformational leadership is grooms followers into future leaders by well-favored them freedom to co ntrol their behavior, elevates followers concerns from physical to psychological needs