Leadership styles and their impact on organizational innovation and success

Leadership Innovation

The Role of Leadership Styles in Organizational Innovation and Success

Purpose Statement / Problem Statement

Theory

Effects of theory

Limitations of the theory

Innovation and Organizational Success

Leadership Style and Innovation

Leadership Styles and Organizational Success

Instruments for assessing leadership style

Vl. Methodology

Vll. Type of Study

Quantitative Research

Qualitative Research

Vlll. Conclusion

This study will attempt to identify which leadership style is best suited for organizational innovation and success. There are a large range of factors to be considered. Among them, leadership style has been recognized as one of the most important of the various considerations. Leadership style correlates to positive transformation as well as influences organizational innovation and often diffusion of innovation. A few studies have empirically examined and found the links between leadership style and innovation at the organizational level and even connection between style of diffusion of innovation and success. Leadership style has been traditionally emphasized as the most important individual influences on organizational innovation (Goldsmith, Baldoni and McArthur, 2010).

Within the development of the literature, researchers and professionals have started believing that the collective capability of organizational learning plays a key role in determining innovation which passively affects the real form of success. In the structural equation model organizational learning creating a stronger direct influence on innovation than leadership style but however, leadership had a strong, significant influence on organizational learning, indirectly affecting firm innovation and success. Influential leadership always motivates the inverted pyramid style managerial structure of employees as a part of organization. Functional key of success is depending on exceptional innovation and diffusion. This is basically an extended effort of the top level leadership in a model of managing strategic contradictions associated with paradoxical cognition. Top leaders are articulating a paradoxical frame, differentiating between the strategy and feature for the existing product and those for innovation, moreover integrating between those strategies and features while diffusion of any new innovation. Still there is a big lack of research which specifically examines the contextual conditions under which this factor enhances the organizational success (Lindebaum and Cartwright, 2010).

II. Purpose Statement / Problem Statement:

a. The purpose of this study is to explore and provide a deeper understanding of the relationship between leadership styles and organizational innovation. This research will also provide all the details of connectivity factors and catalysts of ultimate organizational success, which will enhance the basic idea of relation between leadership style and success. These factors vise aversely spread effect on total management strategy.

b. It is not fully known to what extent leadership styles keep impact on innovation and diffusion which ultimately is a critical success factor of innovation enhancement and organizational success. Therefore, this study will investigate to provide a deeper understanding of the relationship between leadership styles and organizational innovation and success. During the course of investigation it will go through different phases and experiments even it may change or update few previous concepts.

III. Literature Review:

Theory:

Transformational Leadership Theory: This research is intended to investigate the impact of transformational leadership on organizational innovation, and to determine whether transformational leadership acts as a positive catalyst in organizational success. Bass discussed in his theory of Transformational Leadership about both organizational environment and personality factors. Charismatic leaders basically are more successful to motivate others employees and even the higher managements. Bass (1985) in his theory deals with such consideration that the association between transformational relationship and organic system brings changes rapidly. In the early pre-theory period there were a number of hypothesis that didn't fit the other theories, even often fit the involving attempts to make factor analysis fits with constructs that they stubbornly refused to accommodate (Hawkins, 2011). As the rapid technological changes are continuously taking place in today's dynamic work environment, transformational leadership leading change of high value in the organization. According to Goldsmith, Baldoni and McArthur, (2010) power needs to be predominated in transformational leaders and affiliation needed in transactional part. This theory has a big implication on the training of an employee. It is done by helping the staff, making them self-confident, making them aware of their further goals. From previous all the works it has been proved that good leaders are not only transformational but also transactional. There are hierarchies of correlations among the various leadership styles. In this theory there are multiple levels of analysis and psudotransformation (Goldsmith, Baldoni and McArthur, 2010).

Innovation and Organizational Success

Innovation can be considered as the initiation, adoption and implementation of new ideas or activity in an organization. It is recreation of a premade brand or making a new product or just marketing of old product in new form and style. It is becoming the most essential tool of competitive marketing. Just to be one step ahead from same category brands an organization always needs to innovate regularly. According to McLaughlin, (2013) success of an organization is maximum dependent on innovation in daily basis. So, it is most important to adopt a market-oriented approach and consider the definition of organizational success as the returns of new innovation and also in diffusion of that innovation. In order to gain returns from any organizational innovation that will involve all the organization and its employees about the specific innovation in the organization (McLaughlin, 2013). To be more specific, it pertains to those who are involved in the accounting department. The monetary returns realized due to the innovations realized by the organization. Organizational success is fully depending on how innovative is the new product or marketing policy.

Leadership Style and Innovation

Innovation is defined as the successful implementation of creative ideas within an organization. Leadership styles are among the most important factors affecting innovation. Relation between these factors involves synthesizing different leadership styles in organizations to influence employees to produce creative ideas, new products, exclusive services and fast solutions. According to Brooker, (2010) leadership ideas always motivate the creative team of an organization. They groom the team members with innovative ideas and give worthy inputs to them. Making an exclusive innovation then diffusing that in an exclusive marketing policy is partially a leadership input (Brooker, 2010). Therefore, this study aims to demonstrate that transformational leadership is an important determinant of organizational innovation and success. In order to measure the organization's implementation of innovative and creative ideas, the employees and leadership of the organization will be polled in a survey to gain the information in this area of the study. According to transformational theory as explained by Amani Ashlubolagh et al., (2013) updated training is the only way that the leaders become more transformational, which make them more conventional about innovation and leadership style. Through this process they can be more in parallel with other organization leaders. Few factors holds the relationship between leadership style and innovation, factors are: a) Value-added innovation b) Exploratory innovation c) Generation of idea d) Evolution of idea e) Implementation of idea (Amani Ashlubolagh et al., 2013).

Leadership Styles and Organizational Success

It is highly anticipated that only through transformational leadership an organization reaches the highest point of innovation, which is the basic exterminating factor of organizational success. Few more things affects the relationship, factors are: Leader-a) Member views Exchange b) innovative organizational culture c) encouragement of creativity d) organizational encouragement e) supervisory encouragement f) work group encouragement g) organizational pediment to creativity h) creative workforce i) leader attribute j) anatomy of the creative team etc. These factors basically mold the relationship between leadership style and organizational success (Carter and Greer, 2013).

Instruments for assessing leadership style

There are a number of factors that actually determines the clarity, quality and category of leadership assessment. Leadership capabilities can be judged form the focused drive of the leader to achieve a goal aided by the emotional intelligence of the leader. According to Moodian, (2009) a transformational leader creates an atmosphere of trusted influence and induces conceptual thinking which can be parameters for assessment.

Verlander, (2012) says that leadership skills and be assessed from the success of change management if needed and the degree of successful coaching and monitoring of the team that the leader is able to do (Verlander, 2012). A transformational leader or a change leader can also be rated from the way the leader communicates, negotiates and solves problems. The way a transformational leader complies to the responsibilities is also another parameter that can help judge the ability and success of the leader. According to Furtunescu and Domnariu, (2014), this can be achieved by judging the ability of the leader in creating the vision for a particular goal, leveraging knowledge, tea motivation and producing results (Furtunescu and Domnariu, 2014).

V. Research Questions

R1. Does transformational leadership drive organizational innovation and creativity? (This is asked to a research group to derive a qualitative insight out of the generalized answers about the leadership driven organizational innovation and creativity.)

R2. Are employees led by transformational leaders more likely to be innovative and creative? (If the leadership is transformational they will definitely drive the employees towards more innovative and creative attribute.)

Vl. Methodology

To get proper frame of leadership style in organizational innovation and success and an idea of the relationships between Organizational Innovation and Success and the relationships between leadership styles and organizational success and even in between leadership style and innovation must be considered. This research has taken its primary view from Transformational Leadership Theory. Two organizations have been selected for sampling of this research work. An open ended questionnaire has been set and distributed among the employees and the leaders. The responses were collected and compiled so that a generalized idea can be identified in the answer sheets on the basis of statistical figures (6 and Bellamy, 2012).

The purpose of this study is to explore perceptions of the relationship between leadership styles and organizational innovation with a sample composed of both leaders and employees. In order to understand this phenomenon, the study will ask two research questions among employees and their leaders in three organizations in a selected city. They will participate in this study. All companies will be small business with at least 50 or more employees and all will be engaged in the development of new products / services and the improvement of existing products in one word innovation (6 and Bellamy, 2012). On such respective approach an organization initially involves individual counseling by organizational development practitioner or related professional on basis of this kind of research.

Basically there are two kinds of research, Qualitative and Quantitative.

Vll. Type of Study

Quantitative Research

The researcher has two hypothesis, these are the questions one of which predicts the relationship between leadership and organizational innovation another predicts the variable quality between transformational leader and innovation and creativity. In order to find the answer researcher have taken help of printed questioner and online questionnaire (6 and Bellamy, 2012).

Afterwards all the collective data will be subject to statistical analysis with help of statistical software. At the end the statistical analytical values are included in the journal. Implication of findings of the research is provided.

Generally researchers don't have access to all the members of a particular group. Rather they randomly choose samples usually make inferences from their study about these larger groups. Just because of this, it is important to sample people involved in a particular population/group. To that extent generalizations are possible depending on the number of people involved in the study, how they have chosen and whether they are representative of a particular standard group. Mostly random samples are preferred so that each participant as a sample has an equal chance of participating.

Qualitative Research

Qualitative research is the usually made out of the social constructivist paradigm. With emphasized context of socially constructed nature of reality. It is a process about recording, analyzing and attempting to reveal the deeper sphere and significance of human behavior and experience; which also includes contradictory beliefs, behaviors and emotions of a human subject. Researchers are always in search of complicated and unusual experience and emotions of human being. In this research the method determination factors are following;

Organization: two organizations will be selected on the basis of choice of the researcher. Next step is to choose the subjects of research that means random samples from the stuffs. More samples will give more accurate result. If a researcher can include all the employees in survey the P. value (probability value) will be most accurate.

Participants: Employees and leaders of that selected organization.

Process: Participants will be given a sheet of paper containing few questions related to the relationship between transformational leadership style and innovation and success.

Instruments: Questioner, existing documents, results and reports of any previous study. Questioner will be distributing among employees of a homogeneous group of a particular company. These will contain particular group discussions on transformational leadership and organizational innovation and creativity. Each of the two organizations will be in separately examined.

Data Collection: organizations will be chosen one by one and the organization's employees and leadership will be distributed a questionnaire/survey paper containing open-ended questions. The questionnaire/survey will quire the information for this study in order to prepare for focus-group discussions organized for the employees and leadership of the organization. The information taken from the questionnaire/survey and focus-group discussions will generate a case study on transformational leadership and organizational innovation and creativity of that particular organization.

Data Analysis: In this process data will be analyzed on the basis of qualitative research. Depending on the answer sheets a statistical figure will be derived and researcher will come to a conclusion.

Vlll. Conclusion This research will investigate the impact of transformational leadership on organizational innovation, and to attempt to determine whether transformational leadership acts as a positive catalyst for organizational success. Charismatic leaders basically are more successful in their ability to motivate others employees and even the higher managements. Becoming a charismatic leader is one component of transformational leadership. Going through different phases and training programs leaders become charismatic and starts motivating the employees. Innovation is nothing but the initiation, adoption and implementation of new ideas or activity in an organization and it is becoming the most essential tool of competitive marketing. In order to stay one step ahead from same category brands an organization always needs to innovate regularly (Kirimi and Barine, 2012). Organizational success is eventually depends on how innovative is the new product or marketing policy. It is also important to adopt a market-oriented approach and consider the definition of organizational success in form of innovation and approach of diffusion (Goudarzv and Chigini, 2011). Organizations will be more receptive to transformational leadership during adaptation orientation than during efficiency orientation. Transformational leadership plays a vital role for effective managers because leader effectiveness determines the success level of the organization. This type of leadership is effective in crisis and emergency situations, as well as when projects need to be carried out in a specific style. Using this approach, the manager (leader) and the associates (followers) are "transformed" to enhance job performance and help the organization be more productive and successful (Boga and Ensari, 2009). Transformational and charismatic leadership are often treated as equivalent. However, it is difficult to determine whether there is that much specific qualitative difference in applying labels in leaderships theories individually as "transformational," "transactional," and "charismatic" to individual leaders.