Doctoral Study Prospectus: The Impact Of Transformation ✓ Solved

Doctoral Study Prospectus10prospectusthe Impact Of Transformational

The Impact of Transformational Leadership on Organizational Performance and Employee Retention

Problem Statement: Employee retention continues to remain a complex challenge in small and medium-sized enterprises. In 2018, employee turnover was estimated to be 19%, where 77% of the rate was preventable by leaders through a change of their leadership styles. The general business problem is the high rate of turnover in organizations and its subsequent impact on organizational performance. The specific business problem is the need to examine the relationship between idealized influence, inspirational motivation, individualized consideration, organizational performance, and employee retention.

Purpose Statement: The purpose of this quantitative correlational study is to examine the relationship between idealized influence, inspirational motivation, individualized consideration, organizational performance, and employee retention. The findings may help improve employee retention and performance at small and medium-sized enterprises.

Nature of the Study: A quantitative research method will be used as the elements of the qualitative approach are not relevant to the research problem. Non-experimental research designs are appropriate for examining relationships, and a correlational research design will be utilized.

Research Questions: What is the relationship between idealized influence, inspirational motivation, individualized consideration, organizational performance, and employee retention?

Hypotheses: H10: There is no statistically significant relationship between idealized influence, inspirational motivation, individualized consideration, organizational performance, and employee retention. H1a: There is a statistically significant relationship between idealized influence, inspirational motivation, individualized consideration, organizational performance, and employee retention.

Theoretical Framework: The theoretical framework will be based on the transformational leadership theory introduced by Downton and further developed by Burns. Transformational leadership consists of five components: idealized influence attributed, idealized influence behaviors, inspirational motivation, intellectual stimulation, and individualized consideration.

Significance of the Study: Value to Business and Contribution to Positive Social Change: The findings of the study contribute value to businesses and may also extend to positive social change by reducing the negative social and individual consequences of unemployment.

Paper For Above Instructions

The objective of this research is to deeply analyze the impact of transformational leadership on organizational performance and employee retention. In today's competitive business environment, particularly within small and medium-sized enterprises (SMEs), the necessity for effective leadership styles is more pronounced than ever. As highlighted in the problem statement, employee turnover poses significant challenges, with approximately 19% turnover estimated in 2018. Transformational leadership emerges as a potential solution to mitigate these challenges, allowing organizations to foster an engaged and committed workforce.

Numerous studies have established a correlation between transformational leadership and positive organizational outcomes. According to Anitha and Begum (2016), effective leadership contributes significantly to improved employee retention. This finding resonates with empirical evidence suggesting that transformational leaders successfully cultivate an environment where employees feel motivated and valued, thus reducing their intention to leave (Jiang et al., 2017). By focusing on idealized influence, inspirational motivation, and individualized consideration, leaders can significantly enhance both organizational performance and employee retention.

Methodologically, the research adopts a quantitative correlational design to statistically analyze the relationships between the variables in focus. This approach aligns with existing literature affirming that correlational research designs, classified as non-experimental, are effective in investigating the relationship between independent and dependent variables without manipulating them (Johnson, 2001). Specifically, this study aims to quantify the extent to which idealized influence, inspirational motivation, and individualized consideration contribute to organizational performance and employee retention in SMEs.

Research questions will guide the inquiry, specifically addressing the relationship between the variables of interest. The primary question posed is: what is the relationship between idealized influence, inspirational motivation, individualized consideration, organizational performance, and employee retention? A corresponding set of hypotheses will be tested, considering both the absence and presence of significant relationships. The null hypothesis posits no significant relationship, while the alternative hypothesis indicates that a significant relationship does exist.

The theoretical framework guiding this study is based on transformational leadership theory, which describes how leaders can inspire and motivate followers to achieve high levels of performance through visionary guidance and support (Avolio & Bass, 1995). This theory posits that transformational leaders encapsulate attributes that encourage trust, admiration, and respect among their followers, leading to enhanced employee engagement and retention (Avolio et al., 1991). Such behaviors and characteristics are essential in a rapidly changing business landscape where organizations increasingly rely on innovative solutions and high levels of commitment from their workforce.

Several empirical findings underscore the significance of transformational leadership for SMEs. For instance, Boamah et al. (2018) demonstrated that organizations led by transformational leaders experience higher levels of job satisfaction among employees. Additionally, such leadership styles not only boost organizational performance but also significantly lower employee turnover rates. These findings align with the present study's hypothesis that adopting transformational leadership attributes can lead to better outcomes in both employee retention and performance metrics.

Furthermore, the significance of this research extends beyond mere business implications; it encompasses a larger social narrative concerning employment and community well-being. As highlighted by research, unemployment can contribute to various adverse social conditions, including poor health outcomes and increased crime rates (Cylus & Avendano, 2017). By fostering a culture of retention through improved leadership practices, SMEs can positively impact local communities, thereby contributing to broader social change. Norströma et al. (2019) elucidate that employment positively influences individuals' health-related quality of life, signifying that enhanced employee retention could translate into healthier communities.

In conclusion, this research underscores the pivotal role of transformational leadership in shaping organizational dynamics and employee experiences. By thoroughly examining the interplay of idealized influence, inspirational motivation, and individualized consideration, the study seeks to contribute valuable insights that can guide SMEs in effectively managing their workforce. Ultimately, the integration of transformational leadership principles not only enhances organizational performance but also fosters a more engaged and satisfied employee base, leading to more positive societal outcomes.

References

• Anitha, J., & Begum, F. N. (2016). Role of organisational culture and employee commitment in employee retention. ASBM Journal of Management, 9(1), 17-28.
• Avolio, B., & Bass, B. (1995). MLQ multifactor leadership questionnaire. Mind Garden, Inc.
• Avolio, B., & Bass, B. (2002). Developing potential across a full range of leadership cases on transactional and transformational leadership. Lawrence Erlbaum Associates.
• Boamah, S. A., Laschinger, H. K. S., Wong, C., & Clarke, S. (2018). Effect of transformational leadership on job satisfaction and patient safety outcomes. Nursing Outlook, 66(2). https://doi.org/10.1016/j.outlook.2017.10.004
• Cylus, J., & Avendano, M. (2017). Receiving unemployment benefits may have positive effects on the health of the unemployed. Health Affairs, 36(2).
• Jiang, W., Zhao, X., & Ni, J. (2017). The impact of transformational leadership on employee sustainable performance: The mediating role of organizational citizenship behavior. Sustainability, 9(9), 1-17.
• Johnson, B. (2001). Toward a new classification of nonexperimental quantitative research. Educational Researcher, 30(2), 3-13.
• Norström, F., Waenerlund, A., Lindholm, L., Nygren, R., Sahlén, K., & Brydsten, A. (2019). Does unemployment contribute to poorer health-related quality of life among Swedish adults? BMC Public Health, 19(1).
• Park, C., McQuaid, R., Lee, J., Kim, S., & Lee, I. (2019). The Impact of Job Retention on Continuous Growth of Engineering and Informational Technology SMEs in South Korea. Sustainability, 11(18), 5005.
• Tian, H., Iqbal, S., Akhtar, S., Qalati, S., Anwar, F., & Khan, M. (2020). The impact of transformational leadership on employee retention: Mediation and moderation through organizational citizenship behavior and communication. Frontiers in Psychology, 11.