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INTERNATIONAL ISLAMIC ECONOMIC SYSTEM CONFERENCE (I-iECONS 2021)
A Qualitative Study on Leadership Characteristics on High Team Performance Among Takaful Agency Managers
Mohd Zefli Ghaus Mohamed, Raze Norshyahman Shahril, Bahariatulaini Badri@Harun
Universiti Kebangsaan Malaysia E-mail ([email protected])
1. Introduction
Takaful sector is seen as a lucrative business and it is one of the Malaysia's National Key Economic Areas (NKEAs) (Daud et al., 2014) which has significant growth potential in meeting the country's economic needs (Yazid et al., 2012). However, in order to become competitive in the modern business world, it requires a high-quality leadership (Halim, 2013). Leadership which refers to how a leader influences and is influenced by his or her followers (Northouse, 2016) is vital in leading a successful team. Hence, takaful agency leaders or managers must have the certain characteristics or quality to lead their team successfully (Salleh, 2016). They must be armed with appropriate leadership styles to inspire and motivate their team members to work harmoniously (Alade, 2020) in a safe and conducive working atmosphere (Malik et al., 2016). As a result, they are able to ensure team success (Lin et al., 2019), meet performance criteria, (Alade 2020), and produce successful and futuristic businesses (Alade, 2020).
Previous research on leadership among takaful industry in Malaysia focuses on leadership style (eg: Hashim and Hashim, 2012; Abdul Hamid et al., 2012) and Islamic leadership principles (eg: Daud et al., 2014, Hisham et. al., 2019). For example, a quantitative study by Hashim and Hashim (2012) among 196 takaful agency managers found that ‘scout’ leadership style to be the dominant leadership style practiced by takaful agency managers. Moreover, a range of follower outcomes have been discovered to be influenced by leadership styles (Koo and Park, 2017) including high team performance (Satell and Windschitl, 2021). Employees' attitudes will be influenced by the quality of the leader-follower relationship, which will, in turn, influence their job performance in the long run (Ohemeng, 2018). Certain characteristics of the leader are needed to be exerted by the leaders in influencing the followers to perform their jobs (Norman et al., 2020). Therefore, we proposed the following proposition: “When leaders reflect themselves well with their followers, they can perform together better by achieving mutual goals which contributes to high team performance.”
Underpinned by Leader-Member Exchange (LMX) theory, this study intends to explore the dominant characteristics of leadership that influence the team performance among the successful takaful agencies as one of the most competitive industry in Malaysia.
2. Materials and Methods
The current study adopts a qualitative method. According to Bryman (2004), qualitative research on leadership tends to give greater attention to the ways in which leaders and styles of leadership must be or tend to be responsive to particular circumstances. This tendency can operate on at least two levels. First, qualitative researchers are more likely to emphasize the significance of the sector within which leadership takes place (schools, banks, construction organizations, police, and the like) for styles of leadership and what is regarded as more or less effective. Secondly, qualitative researchers tend to be more sensitive to the implications of particular circumstances for leaders and their styles of leadership. This study adopted basic qualitative study (Merriam, 2002) using interview as data collection.
Online interviews were carried out on eight (8) participants who are divided into four (4) dyadic pairs including managers and agents from four (4) takaful agencies with Million Dollar Agency status located in Klang Valley,
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Malaysia. According to the Department of Statistics Malaysia as of November 2020, Selangor state is recorded with the highest population in Malaysia which consist of 20 percent from the total of 3.7 million Malaysian populations. Thus, these locations are seen as a competitive market for takaful players due to its high number of potential customers for takaful plans. Interviews were conducted through google meet online platform or telephone calls. The interviews lasting 30-60 minutes and were recorded and transcribed. Two sets of interview protocols (manager and leader) were adapted from Elshout et al. (2013) and Tan et al. (2015) served as guidance for data collection during the interview process. The data were analysed using thematic analysis by Braun and Clarke (2006).
3. Results and Discussion
Based on the interviews, we found several themes that described the approaches of leadership namely leaders as coach (to guide), leaders as role model (to inspire) and knowledge sharing in ensuring high team performance from both managers and agents views. Following tables show the evidents for leader as coach, leader as role model and knowledge sharing that could be associate with the dominant characteristics possess by the Takaful manager who lead successful team performance.
Table 1. Verbatim Quotes [Theme: Leaders as Coach (to Guide)]
N Sub Theme Manager (L) Agent (F)
1. Ensuring
consistency in personal and agency goals
“We need to match their personal target with the sales they need to bring in for that year.” (L4)
“Through Agency Planning Workshop, our personal target and the agency target will be shared for matching.” (F3)
2. Good listener “We need to listen to our agents, especially the high-performers. “We need to be diplomatic rather than too firm (I’m not the boss. Everyone is my partner).” (L3)
“Sharing personal matters with leaders is very important for the leader to understand the actual situation. Leader will give assistance.” (F2)
3. Words of
Encouragement “We need to advise agents to have an open mind, so they can know better about their direction in this industry.”
(L3)
“We’re always being reminded that the purpose of being a takaful agent is to help people.” (F2)
The International Islamic Economic System Conference – The 9th I-iECONS 2021
Table 2. Verbatim Quotes [Theme: Leaders as Role Model (to Inspire)]
Manager (L) Agent (F)
“We really need to show our high discipline, good attitude and excellent record in sales.” (L1)
“I start from zero to hero, and this is one of the good examples to inspire my agents for high performance.” (L3)
“His success inspires me.” (F1, F2)
“Leader’s charisma plays an important role for high team performance and source of reference.” (F3)
Table 3. Verbatim Quotes (Theme: Knowledge sharing)
Manager (L) Agent (F)
“Agents are encouraged to share about their task-
related thoughts with leaders” (L1, L2, L4) “We can share our knowledge with leaders.
According to our leader, whatever ideas is fine as long as in accordance with the established guidelines” (F3)
Surprisingly, our findings revealed that despite being operated in sales setting industry, rewards in the form of commissions and incentives are perceived as common and expected, so it does not considers as strong contributor to high team performance. Instead, the rewards in terms on intangible such as achievement celebration is found to be an important as it may foster ‘bonding' between managers and agents. This is supported by the following quotes:
“We need to have strong bonding with our agents, and this is the most effective way to ensure our high team performance. We arrange family get-togethers (eg: family day, family dinner, family member’s birthday celebration) to develop a ‘emotional feeling’ in the hearts of our agents” (L3)
Our findings also revealed that takaful managers were agents themselves before becoming leaders. Thus, they reflect themselves with their agents well due to similar working experience.
“I was a normal agent on part time basis before” (L2)
“We really need to show our excellent record in sales.” (L1)
“I started from zero to hero, and this is one of the good examples to inspire my agents for high performance.” (L3)
“We’re always being reminded that the purpose of being a takaful agent is to help people.” (F2)
“Our leaders are willing to hear and that is very important.” (F4)
“Leader’s charisma plays an important role for high team performance and source of reference.” (F3)
The above quotes proofed that the takaful leaders are able to promote positive behaviour among the takaful agents through their ‘self-awareness’ characteristics. Knowing one's talents and shortcomings, as well as recognising one's emotions and personality, are all examples of self-awareness (Ilies et al., 2005). Leaders who are able to promote “positive psyhocological capacities” and “positve ethical climate” are considered as “authentic” leader (Walumbawa et al., 2008). Hence, we conclude that the takaful leaders reflect the authentic leadership behaviour for high team performance.
4. Conclusion
The current qualitative study has provided proof to support that leader-member relations plays an important role for effective leadership in ensuring high team performance. In addition, utilising a dyadic approach, this study contributes further understanding on LMX theory by explaining the success of team performance is depending on appropriate leadership approach. This study found that the high performance takaful team were lead by takaful managers who adopt authentic leadership approach. These takaful leaders possess characteristics such as role model
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and coach; and self-awareness characteristic which lead to easily achieving mutual goals with the team members which subsequently contributes to organizational goals. This study only identify the characteristics of the takaful leaders that lead to successful team performance, future study should look into specific leadership styles such as charismatic leadership in understanding different leadership styles impact on high team performance.
Acknowledgement
We thank Associate Professor Dr. Rosmah Mat Isa, in providing guidance for the study and Professor Dr. Zafir Khan Mohamed Makhbul for his views on the adapted interview protocols. We would also like to express our appreciation to the managers and agents from the participating takaful agencies for the input given.
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