I would like to know what kind of leadership style the managers in this industry usually use towards their employees and their influence on employee performance. To understand the relationship between different types of management style and employee performance in small auto maintenance firms.
Transactional leadership & Transformational leadership
Transactional leadership
Furthermore, management styles and employee relations in small organizations are more informal than in larger organizations. From this content, it is clear that the leadership style of small business bosses has a stronger effect on their employees. This research will help us understand the relationship styles in small car maintenance companies very well.
Transformational leadership
The manager who uses this management style closely monitors the performance of the employees to find out the errors and mistakes and immediately corrects when errors and mistakes occur. The leaders of this type become a role model who is admired, trusted and emulated by their employees. Leaders behave in moral, ethical and principled ways and consider the needs of employees rather than their own.
Inspirational motivation – Leaders communicate high expectations, use symbols to focus effort, and express purpose in simple ways because employees respect leaders who provide emotional appeals to employees to increase awareness and understanding of mutually desirable goals. Providing meaning and challenge to employees' jobs generates motivation such that individual or team spirit is born, enthusiasm and optimism emerge. Leaders who use this type of leadership are promoting logical, intelligent thinking and careful problem solving.
Individual Consideration – This type of leadership is “individual consideration” which is concerned with the development of followers through coaching and mentoring.
The criterion of leadership existence
Hypotheses Development
From the leadership theories mentioned above, we can conclude that the difference between transactional leadership and transformational leadership lies in the way employees are motivated (Timothy C., Andy T., Victoria O.). But some studies come to different conclusions, such as Timothy's study, C. 2011) summarizes that transformational leadership affects employees insignificantly, but transactional leadership affects employees positively and significantly in small-scale enterprises. But in the final conclusion, they recommended that small businesses should use the transactional leadership style for management and transition gradually and strategically to build long-term transformational leadership to develop and grow their businesses.
This recommendation indirectly supports the claim that transformational leadership is more suitable than transactional leadership for the long-term growth of companies. On the other hand, some studies suggest that companies should use both transactional and transformational leadership when empowering employees. According to various studies, small businesses use both leadership styles in influencing employee performance, but the transformational leadership style is commonly used because it is more effective than transactional leadership in promoting employee performance.
Based on these points, a hypothesis is formulated, since transformational leadership is often used in small companies.
Research Framework
RESEARCH METHODOLOGY
- Research Setting & Data Collection
- Interview Objective
- Respondents
- Interview Questions
These companies were chosen as case studies to study the use of relationship styles in car maintenance companies and their impact on the company in terms of employee performance. The interview sessions were conducted with three bosses and six mechanics from three companies, or that means one interview with one boss and two mechanics from the company. The list of interviewees' names was kept secret to protect their identities.
Their main responsibilities are managing the car maintenance garages, monitoring the performance of the mechanics in order to lead them to achieve the company's goals, making sure that their service delivery can satisfy the customers. They have to work closely with their bosses in order to make the work progress effectively. Before interviewing them, I explained the definition of each leadership style to them in order to let them understand the knowledge about the leadership style.
If you have to ask your mechanics to perform a difficult task, how do you do this.
RESEARCH FINDINGS
The findings of interview from the company A
These are very useful methods to increase the productivity and quality of mechanics in car tuning.” From his expression, it is clear that the boss uses contingent reward leadership to encourage his employees to achieve the company's goal. I usually give him suggestions and new ideas on how to solve the problem." It is clear that the boss here uses the leadership of intellectual stimulation. Your ability also to grow to a higher level and I will be assigned the next challenging job for you." It is clear that the boss here uses both idealized influence charisma and inspirational motivational leadership styles, in in order to encourage mechanics to anticipate attractive future states for the organization and themselves (Bass et al, 1997).
I may not have to work in the garage all the time and my technicians can consciously work independently, without me having any control over it.” It is very clear that the boss uses the leadership style with idealized influence and charisma to improve the performance of his mechanics because the boss has determined the value or principle of the company through his individual performance. The first technician explained that “the boss closely monitors our work performance and does not allow problems to arise without control. I try to do my job effectively and error-free, because I know the boss is keeping a close eye on my performance.” This statement proves that the boss applies Active Management-by-exception and that this positively affects mechanical work performance.
I can overcome the obstacle by implementing his suggestion.” From its final content, it proves that the boss uses the leadership styles of charisma as intellectual stimulation as well as idealized influence.
The findings of interview from the company B
The boss explained that: “When we face the problem, I usually let them stop doing the work and motivate them to think about why they can't solve the problem with the existing method. If they still can't solve the problem, I'll come in and give them suggestions to find the new solution." It's clear that the boss uses intellectually stimulating leadership, which provides the mechanics with new ideas and encourages them. them to form new ways of thinking (Bass, 1985). The boss continued, "they react positively because it can improve their skills." From his answer, we can know that intellectual stimulation leadership positively affects performances of mechanics.
It also improves their skills enormously in the long term." It is clear that the boss uses Inspirational Motivational Management and the mechanics respond strongly positively. They have come to be employees because they want to learn more work experience from the company in order to establish their own in the future Corporation." It is obvious that the boss uses Inspirational Motivational Management and it also has a strong effect on the mechanics. The first mechanic explained that "the boss usually sees me doing work closely, he gives suggestions when I work in a wrong way.
If customers are satisfied with our services, the company can grow and undoubtedly we can grow together with the company.” His latest content shows that the boss uses both a leadership style and intellectual stimulation and inspirational motivation.
The findings of interview from the company C
Usually he does the thing first as an example for us and then lets us do it ourselves. If someone still can't do it, he will ask the mechanic what's wrong and give him a suggestion or idea, and encourage him to do it. If he still doesn't succeed, the boss teaches him individually because he knows that every mechanic has a different background in terms of knowledge and skills.
I think his style is good for us and that's the reason I've been working with him for 10 years." This explanation proves that the boss here uses leadership styles of active management by exception, individual treatment, and intellectual stimulation, which have a positive effect on the work performance of mechanics. He continued: “The incentive is necessary for me because I need extra money to treat my family. I think I need both encouragement and knowledge." From his final explanation, it is clear that the boss uses a contingent reward management style and believes that both the management style and the contingent reward and individual consideration are equally important to him.
RESEARCH DISCUSSION
In table 4.1, the boss usually uses 3 component behaviors of transformational leadership and this has a strong positive effect on mechanics' performance. From the previous analysis, the transformational style is used more often than transactional leadership style because he thinks that the transformational leadership style is more important than transactional leadership style. I observed that the boss uses both transactional (contingent reward, Active management-by-exception) and transformational (Individual consideration, Intellectual stimulation) leadership styles in the company.
In Table 4.1, two components of transformational leadership behavior are commonly used by the boss and have a positive effect on the performance of mechanics. From the above analysis and their answers in the interviews, it is clear that most of the bosses of the car maintenance companies prefer to use the transformational leadership style over the transactional leadership style in their companies, except for the boss, Mr. C, who has the same level of both leadership styles because he believes that the transformational leadership style Leadership style has a significant impact on the performance of mechanics in the long run, and there is no doubt that effective performance can clearly drive business performance. This is a very important finding from this research and this finding supports the recommendation of Timothy C., Andy T., Victoria O. 2011) that small businesses should use transactional leadership style for management and gradual and strategic transit to be transformational leadership in long-term for the development and growth of companies.
In my opinion, I absolutely agree with the use of the leadership style of the above three companies, especially companies A and B, because the transformational leadership style focuses on intrinsic motivation and is more effective than external motivation that focuses on transactional leadership.
CONCLUSIONS AND RECOMMENDATIONS
Recommendation
According to the result of this research, the managers usually use transactional active management style to monitor the mechanics' work closely, and this may let the mechanics feel that the managers do not trust them, because they can perceive that the manager is most of the time trying to closely monitor their mistakes . I recommend that the bosses don't need to monitor mechanics like that, just monitoring sometimes is enough because they have worked with their mechanics for a long time and the mechanics know the work pattern very well.
Limitations and Future Research
