Mediating Effects of Contingent Reward on the Relationship between Leadership Style and Quality Attention among the Top Management in Saudi Arabia Construction Sectors

International Journal of Economics and Management Studies

© 2019 by SSRG - IJEMS Journal

Volume 6 Issue 2

Year of Publication : 2019

Authors : Mahdi A. M . Algahtany and Barjoyai Bardai

10.14445/23939125/IJEMS-V6I2P106

How to Cite?

Mahdi A. M . Algahtany and Barjoyai Bardai, "Mediating Effects of Contingent Reward on the Relationship between Leadership Style and Quality Attention among the Top Management in Saudi Arabia Construction Sectors," SSRG International Journal of Economics and Management Studies, vol. 6,  no. 2, pp. 33-56, 2019. Crossref, https://doi.org/10.14445/23939125/IJEMS-V6I2P106

Abstract:

With the development of technology and the new economy in a global village environment, different organizations are rising with strong hand to take control over the property development and construction sector. The research aimed at understanding the mediating effect of contingent reward in the relationship between leadership styles and quality Attention.A quantitative research was attempted to identify how contingent reward program can be employed by the leadership to increase the level of quality Attention. The research used questionnaire as the quantitative tool. The field work was done on 244 questionnaires distributed to respondents comprising of leaders and supervisors within the Saudi construction sector. The results of the study indicated that both transformational and transactional leadership had a positive influence on the contingent reward and leading to a good attention to quality. However, the transformational leadership was found to be more affected by the level of Contingency reward which in turn lead to a better-quality attention through its variables namely Charisma, Inspirational motivation, Intellectual stimulation and Individualized consideration. These variables had higher influence based on the coefficient results with the transactional leadership along with its variables including Expected efforts, Expected performance and Contingent reward. These findings highlight the need to examine the relationship between management and leadership in accordance with the brand equity and market value of the organization.

Keywords:

Contingent Reward, Leadership Style, Quality Attention, Transformational Leadership, Transactional Leadership.

References:

[1] Goswami, A., Nair, P., Beehr, T.,&Grossenbacher, M. (2016). The relationship of leaders’ humor and employees’ work engagement mediated by positive emotions. Leadership & Organization Development Journal, 37(8), 1083-1099.
[2] Guay, R. (2013). The relationship between leader fit and transformational leadership.Journal of Managerial Psychology, 28(1), 55-73.
[3] Gumusluoglu, L., & Ilsev, A. (2009). Transformational leadership, creativity, and organizational innovation.Journal of Business Research, 62, 461-473.
[4] Hargis, M. B., Wyatt, J.D., &Piotrowski, C. (2001). Developing leaders: Examining the role of transactional and transformational leadership across contexts business.
[5] Hart, C. (1999).Doing a literature review.Thousand Oaks, CA: SAGE Publications.
[6] Hay, I. (2012). Transformational leadership characteristics and criticisms. Retrieved fromhttp://www.leadingtoday.org/weleadinlearning/transformationalleadership.htm
[7] Heinrich, R.,& Paech, B. (2010). Defining the quality of business processes. Retrieved from http://cs.emis.de/LNI/Proceedings/Proceedings161/133.pdf
[8] Hirtz, P., Murray, S.,&Riordan, C. (2007). The effect of leadership on quality. Journal of Engineering Management, 19(1): 22-27.
[9] Hong, S. Y., & Yan, S. U. (2011). Public engagement in supportive communication behaviors toward an organization: Effects of relational satisfaction and organizational reputation in public relations management. Journal of Public Relations Research, 23(2), 191-217.
[10] Horner, M. (1997). Leadership theory: Past, present and future.Team Performance Management, 3(4),270-287.
[11] Hossim, A. (2011). An introduction to quality:Quality Standards. University of Auckland. Retrieved from http://www.tradearabia.com/news/CONS_313297.html
[12] Hovin, G. (2012). Awareness-basedcoaching - Atool for leadership development. A qualitative study of how awareness-based coaching can lead to personal and professional development amongst leaders(Master’s thesis,Norwegian University of Science and Technology,Trondheim, Norway).
[13] Howell, J. M., & Avolio, B. J. (1993). Transformational leadership, transactional leadership, locus of control, and support for innovation: Key predictors of consolidated-business-unit performance.Journal of Applied Psychology, 78(6), 891-902.
[14] Humphreys, J. H., & Einstein, W. O. (2003). Nothing new under the sun: Transformational leadership from a historical perspective. Management Decision, 41(1/2), 85-95.
[15] Bagozzi, R. P., & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the academy of marketing science, 16(1), 74-94.
[16] Samson, D., & Terziovski, M. (1999). The relationship between total quality management practices and operational performance. Journal of operations management, 17(4), 393-409.
[17] Idris, F., & Ali, K. (2008). The impacts of leadership style and best practices on company performances: Empirical evidence from business firms in Malaysia.Total Quality Management & Business Excellence, 19(1), 165-173.
[18] Browne, M. W., & Cudeck, R. (1993). Alternative ways of assessing model fit. Sage focus editions, 154, 136-136.Ishikawa, K. (1989). Introduction to quality control. Tokyo: JUSE Press Ltd.
[19] Garver, M. S., & Mentzer, J. T. (1999). Logistics research methods: employing structural equation modeling to test for construct validity. Journal of business logistics, 20(1), 33.
[20] Ismail A, Halim F. A, Munna D. N, Abdullah A, Shminan A. S., &Muda A. L. (2009). The mediating effect of empowerment in the relationship between transformational leadership and service quality. Journal of Business Management, 4(4), 3-12.
[21] Ismail, S. (2006). Examining the effects of contextual factors on TQM and performance through the lens of organizational theories: An empirical study. Journal of Operations Management, 25, 83-109.
[22] Ivey, G.,&Kline, T. (2010). Transformational and active transactional leadership in the Canadian military.Leadership & Organization Development Journal, 31(3), 246-262.
[23] James, C., Sarros, J.,& Santora, C. (2001). The transformational and transactional leadership model in practice.Leadership & Organization Development Journal,22(8), 383-394.
[24] Javed, S. (2015). Impact of top management commitment on quality management.International Journal of Scientific and Research Publications, 5(8),1-5.
[25] Jayasingam, S., & Cheng, M. Y. (2009). Leadership style and perception of effectiveness: Enlightening Malaysian managers.Asian Social Science, 5(2), 56.
[26] Posner, B. Z., & Kouzes, J. M. (1993). Psychometric properties of the leadership practices inventory-updated. Educational and psychological measurement, 53(1), 191-199.
[27] Jeremy, M., Melinde, C., & Ciller, V. (2012). Perceived leadership style and employee participation in a manufacturing company in the Democratic Republic of Congo.African Journal of Business Management, 6(15), 5389-5398.
[28] Joo, B-K., & Lim, T. (2013). Transformational leadership and career satisfaction: The mediating role of psychological empowerment.Journal of Leadership & Organizational Studies, 20(3), 316-326.
[29] Mas-Machuca, M., & Martínez Costa, C. (2012). Exploring critical success factors of knowledge management projects in the consulting sector. Total Quality Management & Business Excellence, 23(11-12), 1297-1313.
[30] Josanov, I. V., & Pavlovic, N. (2014). Relationship between the school principle leadership style and teachers’ job satisfaction in Serbia. Montenegrin Journal of Economics, 10(1), 43-57.
[31] Judge, T. A., & Piccolo, R. F. (2004). Transformational and transactional leadership: A meta-analytic test of their relative validity. Journal of Applied Psychology, 89(5), 755-768.
[32] Jung, D.I., & Avolio, B. (2000). Opening the black box: An experimental investigation of the mediating effects of trust and value congruence on transformational and transactional leadership, Journal of Organizational Behavior, 21(8), 949-964.
[33] Juran J. M., & Blanton,G. A. (1998). Juran’s quality handbook(5th ed.) (ISBN 0-07-116539-8).Singapore: McGraw-Hill Companies.
[34] Justin, B., & Wilton, H. (2014). Academic administrator leadership styles and the impact on faculty job satisfaction. Journal of Leadership Education.
[35] Zikmund, W. G., McLeod, R., & Gilbert, F. W. (2003). Customer relationship management: Integrating marketing strategy and information technology. Wiley.
[36] Kahsay, J., Osanna, P., & Durakbasa, N. (2007). Investigation of quality awareness, developments and factors impeding product quality improvement in Ethiopian medium- and large-scale manufacturing industries. International Conference on African Development Archives, paper 115.
[37] Kane, T.D., & Tremble, R.T. (2000). Transformational leadership effects at different levels of the army, Military Psychology, 12(2), 137-160.
[38] Käser, P. (2010). Total quality management for micro-businesses in the manufacturing industry.Retrieved fromhttp://www.diplom.de/
[39] Kathuria, R., &Davis, E.B. (2001). Quality and work force management practices:The managerial performance implication. Production and Operations Management, 10(4),460-477.
[40] Keller, R.T. (2006). Transformational leadership, initiating structure & substitutes for leadership: A longitudinal study of research & development project team performance. Journal of Applied Psychology, 91(1),202-210.
[41] Khurram, Z.A., Ibn-E-Waleed, Q., & Sadiya, A. (2012). The effective leadership style in NGOs: Impact of servant leadership style on employees’ work performance and mediation effect of work motivation. International Journal of Economics and Management Sciences,1(11),1-45.
[42] Klingborg, D.J., & Moore, D. (2006). What is leadership?Journal of Veterinary Medical Education, 33(2), 280-283.
[43] Kupers, W.,& Weibler, J. (2006). How emotional is transformational leadership?: Some suggestions for a necessary extension. Leadership &Organizational Development Journal: Bradford, 27(5), 368-383.
[44] Choi, M., Scholl, U. I., Yue, P., Björklund, P., Zhao, B., Nelson-Williams, C., ... & Lolis, E. (2011). K+ channel mutations in adrenal aldosterone-producing adenomas and hereditary hypertension. Science, 331(6018), 768-772.
[45] Kythreotis, A., & Pashiardis, P. (2006). Exploring leadership role in school effectiveness and the validation of models of principals’ effects on students’ achievement. Paper presented at the Commonwealth Council for Educational Administration and Management (CCEAM) Conference,―Recreating Linkages between Theory and Praxis in Educational Leadership‖, Nicosia: Cyprus.
[46] Lai, A. (2011). Transformational-transactional leadership theory. Retrieved from http://digitalcommons.olin.edu/cgi/viewcontent.cgi?article=1013&context=ahs_capstone_2011
[47] Lakshman, C. (2006). A theory of leadership for quality: Lessons from TQM for leadership theory. Total Quality Management & Business Excellence, 17(1), 41-60.
[48] Laohavichien, T. (2000). Leadership and quality management:A comparison between Thailand and USA (PhD dissertation, Clemson University,USA).
[49] Laohavichien, T., Fredendall, L., & Cantrell, R. (2009). The effects of transformational and transactional leadership on quality improvement. Quality Management Journal, 16(2), 18.
[50] Lappalainen, P. L. (2012). Socially competent leadership predictor’s impacts and skilling in engineering. Qualitative Research Methods: A Data Collector’s Field Guide.
[51] Lee, T.H., & Gharajedaghi, J. (1998). Leadership in TQM: What does it mean?Center for Quality of Management Journal, 7(1): 19-30.