Effect of Leadership personality traits towards the transformation of organizational culture

Abstract

Leadership Personality Traits is now an important topic in academic research and professional business practice. Organizations have realized the importance of happy and satisfied employees and they are trying to keep their employees motivated by giving perks and benefits. The literature shows that Leadership is a central issue affecting performance of employees. Leadership within the people and organizations have always been existed and will always remain. To be honest, leadership is one thing that is capable of affecting others in a positive manner and to bring change. The purpose of this study is to find the relationship between leadership personality traits towards the transformation of organization culture. Five research questions were established to find what impact these leadership personality traits have on employee’s performance and organizations culture, to what extent they are practical in organizations. The study adopted the deductive research design. The population of the study consisted of five leading banks of Islamabad, Pakistan. Convenience sampling method was used to determine the sample size of 150 for this study. Data was collected through questionnaires, based on the independent variable and dependent variable and research questions. The IBM SPSS version 23 and Microsoft excel was used to analyze the data collected through questionnaire. Regression analysis was used to analyze the collected data. There are many studies in which researchers argued over the interplay between organizational culture over leadership, based on past findings it is manifested that very limited experimental studies are there which reflect the relationship between leadership and organizational culture. The problem which we will going to address in this study is the effect of leadership personality traits on the organizational culture that how leaders with different personality styles do effect the culture of an organization. Resistance is always there in organization’s that are going through change which may result from different combinations which are: change in the job, reduction in the economic security, threats which are psychological, and lowering status. However, we cannot deny that acceptance of change by individuals depend on their attitude towards it. Some of them are very resistant towards the change while others may be more receptive towards that it. Organization Culture and leadership traits is the influencing factor on individuals. Leaders are responsible for shaping the organization’s culture, as well as the behavior of its leaders. Moreover leader’s qualities are found to be the critical factor in developing the organization’s culture because leaders have strong effect on the organizational culture as well as operations of organization and this issue have been increasing potentially. Leaders have the ability to create structure of organization and also in modelling the culture of organization which influence various matters, activities and as well as services consequently, leadership is playing its role in organization learning. We found that leadership and culture are directly proportional and it will also improve the organizational learning activities so as a result it gave efficient results and speed up the processes of an organization. After that, the study started comparing every initiative with leadership model. After getting the results, descriptive analysis gives us a composed view of each variable of this study, what is the average option respondents chose. Then correlation was used to find the significance of relationship between the dependent and independent variables. The correlation analysis is telling us that there is a moderate to high significant relationship between all variables. The study started checking the relationship between leadership traits and organizational culture, regression and correlation proved that they have significant and positive relationship. And Accept the “H1: There is significant effect of leader extraversion on organizational culture in banking sector”. Then the correlation and regression proved the relationship between “H2: There is significant effect of leader agreeableness on organizational culture in banking sector”. The study analyzed the collected data for both variables in SPSS. Regression and correlation determined that the leadership personality traits have the strong significant impact on organizational culture. Also, it impacts the performance more than the other two variable i.e. flexibility in working hours and leave policy. This proves the “There is significant impact of leader conscientiousness on organizational culture in banking sector”. As the topic of the study suggest that the study are checking the impact of leadership personality traits on organizational culture, for that purpose, the study took average of all the independent variables data, and compared it with the dependent variable data. The relationship between leadership personality traits and organizational culture is significant and positive. Personality traits of leaders and organizational culture affects each other simultaneously, leaders first understand the culture of organization and then reorient the shared values, norms and vision.