Pamantasan ng Lungsod ng Valenzuela

Tongco St., Maysan, Valenzuela City

Chapter II

REVIEW OF RELATED LITERATURE AND STUDIES

Leadership Styles

The term leadership style refers to behavioral pattern employed by a leader to

integrate organizational and personal interests in the pursuit of some goal or objective

(Money Matters, 2019). It is also defined as the leader’s characteristic behaviors when

directing, motivating, guiding and managing groups of people (Cherry, 2019). There are

different kinds of leadership styles that were first defined by a group of researchers led

by Lewin in 1939 such as autocratic leadership style, democratic leadership style and

laissez-faire leadership style. These leadership styles will have a significant effect on

the employees’ behavior for the reason that the leader’s way of leading will influence

and inspire the people in the workplace. Furthermore, a leader can motivate the

employee to work harder and perform better inside the organization.

Leadership styles play an important role in managing human resources in a

company. According to Anwars & Haider (2015), leadership style can affect everyone

from senior and top management to the new entrant of employees in an organization.

This makes the leadership styles a vital and an important part of an organization since it

covers the whole management inside the workplace. In addition to that, according to

Viernes, Binuya, Lanorio & San Pedro (2018), this leadership styles will help steer up

the municipality towards progress. Hence, it is important to choose the leadership style

wisely, whether they do listen to their inferiors’ opinions or not, given that the leaders

will start the mind set. Consequently, they will pass it to their subordinates who will are
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the ones who will transform the mindset into reality. Moreover, these leadership styles

are the tools and behaviors that will help an individual enhance his abilities and enables

a worker to perform their roles more responsibly (Mc Pheat, 2010, as cited by Acosta &

Garcia, 2017).

Different leadership styles may affect an organization’s effectiveness and

performance (Chandan & Devi, 2014). The more efficient a leader is, the more stable a

company will be. Since an effective leader influences his or her followers, what he does

will make an impact on the performance of the employees. The success of the company

will depend on its human resource thus, an effective leader that direct well will be an

asset to the company.

Leadership skills are delivered using a positive language to change the

individuals and the organization, attempting to mitigate social ills (Astin & Astin, 2000,

as cited by Labor n.d.). This implies that the employed leadership style has an impact to

the organization for the reason that it can modify and change how the things inside the

organization works. In addition to that, Nawoselng’ollan & Rousell (2017) stated that

good leadership is the way to a good performance. A good leader inspires and

motivates employee while a motivated employee does his job not only to increase his

performance and commitment but to go beyond the job requirements to help the

organization’s general performance and to be more productive. Furthermore, this study

concluded that there is no perfect leadership style for an organization for the reason that

the leadership style that should be employed depends on the situation.

Leadership style does not only cover the decision-making that occurs within the

organization. It’s about the kind of culture you create in the workplace, the structure of

your organization and how you handle problems and issues that can destabilize your

company (Quain, 2019). They create the culture that will influence the employee’s

performance since they are in a higher position than a regular employee. They are

responsible for the mood and atmosphere inside the workplace. The way they handle

troubles and challenges in the workplace will be helpful in creating a better work

environment for the employees.

According to the study of Asrar-ul-Haq and Kuchinke (2016), leaders are

effective if they adopt an effective leadership style. It is important to choose the right

one for the reason that leadership styles can bring different consequences. These

consequences can directly or indirectly give an impact on the employees’ attitude and

behavior that can affect the company itself later on. By choosing an appropriate

leadership style, a leader can be efficient as well as his subordinates. The leaders can

modify their behavior and leadership style to be more oriented to the results and

outcomes in a workplace.

Autocratic Leadership Style

Autocratic leadership style is a type of leadership style wherein the leader has

the authority to the whole department. This means that the leader will make all the

major decisions and instructs the staff to implement those decisions without asking for

suggestions or input (Quain, 2019). Since the leader will not consult his subordinates
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Tongco St., Maysan, Valenzuela City

before employing a decision, this kind of leadership style will draw a clear line between

the leader and his subordinates. According to Cherry (2019), the leaders most likely

give an idea and employ a decision based on their own judgments and they rarely rely

on the employees. They are the ones in charge to solve a particular problem. This will

limit the leader’s possible option to solve the problem as well as the experiences that he

may use in order to solve the problem.

The leaders in autocratic leadership style have full power and control over their

workers. This makes this kind of leadership style an extreme and intense form of

leadership (Garfinkle, n.d.). The employees do not have the right to voice out their

opinions on how the things inside their workplace should go. As a result, the employees

might see their leaders as controlling that may dent the employees’ morale. Additionally,

Montala (2007) stated that autocratic leaders arranges all the the physical layout to

prevent that no one can interfere the decisions and tasks that are needed to be done.

The employees must do the things that the leaders told them to do. Additional ideas and

suggestions are not being accepted by the leader. The autocratic leaders obtain

maximum productivity by making the worker to be subject in working the tasks that is

given to them. This may lead to have a distance between the leader and the employees.

In autocratic leadership style, employees are only expected to obey orders

without receiving any explanations (Brewer, Selden & Facer, 2000, as cited by Okon &

Isong, 2016). This makes the autocratic leadership style focus more on the task and not

on the human resources needed to get the task done especially because the leader
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does not consult the employees, neither they are allowed to give opinions. Moreover,

the

processes and methods are dictated by the leader (La Marco, 2019). This implies that

the employees are supposed to rely more on their leaders, not because they want to,

but because they are required to. Thus, the autocratic leaders are assumed to be a

dominating and an uncompromising leader.

According to Castillo, Balibay, Alarcon, Picar, Lampitoc & Baylon (2014),

autocratic leadership style demands that the coach should be demanding and directive.

It makes an individual who are still learning to master a skill. Also, through implementing

this kind of leadership style serves as a motivation to those people who have lack of

self-confidence. With this, it increases the performance of an individual when there is

someone who directing him.

According to Heydarian (2016), the most important thing is a strong state and not

a strongman. This means that the organization should have a reform-oriented leader

who is committed in establishing a competent organization. Moreover, Towers (2017)

stated that autocratic management style has a detrimental effect on the employees’

productivity and their motivation to do their job. In this type of leadership style, there is

no more argument about a particular situation will be accepted. This will create a gap

and mistrust relationship between the managers and employees because it only

focuses on the manager’s perspective for the reason that the leaders disregard the

opinions of the workers. Furthermore, according to the study by Kalu & Okpokwasili
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Tongco St., Maysan, Valenzuela City

(2018), the autocratic leadership style shows a significant negative impact on the

employees’ performance. The employees may not want to work on work conditions or

coercion and compulsion, hence, it will create trouble and chaos inside the organization.

The full authority of the leader will not help in solving the problems inside the workplace

for the reason that he will be the only one to solve it; thus, it will not increase or improve

the productivity of an employee.

Laissez-faire Leadership Style

Laissez-faire is a French phrase that means “leave it be”. This kind of leadership

style gives the team all the freedom they need to work on their own (Garfinkle, n.d.).

The leader does not check-up on the employees from time to time. They do not keep

track on how the things are being done inside the work place. The employees work on

their own with minimal supervisions from their head. The leader may mismanage the

whole department for the reason that they lack communication inside the workplace.

The success of the company depends on its employees. The leader is not

involved in day-to-day activities and decisions, however, the employees may still ask for

the leader’s opinions and he may also help the employees to deal with any situation that

may come up (Autocratic, Participative, and Free-Reign Styles, 2015). This means that

the leader may come up with the few objectives of the organization but the employees

will decide on how they will meet it for the reason that they have the total freedom in

making decisions on how the things will be done inside the organization. In addition to

that, according to Verma (n.d.), the employees are expected to plan, motivate and
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control themselves as well as be responsible for their own actions. This style could the

capabilities of an employee because they perform the tasks on their own. However, it

could lead to chaos in the workplace because the employees have different opinions

and they have tendencies to contradict each other.

According to Cherry (2019) laissez-faire is a style wherein leaders are hands off

in making decisions with their organization and they let their employees' to decide on

their own. Laisezz-faire style is suggested if your subordinates are responsible and

motivated. However, if an employee isn’t capable in handling issues and pressure, this

leadership style is not recommended. Furthermore, according to Tumapon (2015),

laissez-faire leadership style is most recommended in an organization with well-reared

employee. An employee that is highly-trained and highly-skilled that is already capable

in giving excellent judgments and decisions should be left on their own. This will train

and exercise the ability and competence of an employee and will improve their self-

confidence. The same thing was concluded from the study of Qazi (2016). The laissez-

faire leadership style is delegated to group of experts and is only suggested when the

leader already established a trust and confidence with the subordinates. Moreover,

highly experienced and trained employees requiring little supervision fall under the

laissez-faire leadership style (Sun Star Pampanga, 2016). Those people who do not

have characteristics like this will experience difficulties to the reason that this leadership

style will obstruct the production of the employees who needs supervision. Leaders who

employ laissez-faire leadership style do not supervise directly the employees and they
 Pamantasan ng Lungsod ng Valenzuela
Tongco St., Maysan, Valenzuela City

do not even provide regular feedback to their subordinates. This can even lead to poor

production, lack of control and increasing costs that is not good to the company itself

and can affect many aspects.

According to the study of Constanzo & Koppenfels (2013), as cited by Franklin,

2016), U.S. teachers prefer leadership style that does not prescribe rules from above.

Minimal supervision creates trust and confidence in employees that will further lead to

better performance of an employee. Moreover, according to the results of the study of

Sebastian, Basit & Hassan (2017), laissez-faire leadership style has a positive

significant impact on employees’ performance. It shows that most employees are more

comfortable when they are free to make decisions on their own and their leaders give

them such freedom to do this. They tend to be more comfortable in communicating and

expressing their views with this leadership style. Aside from that, they do not worry

about some leadership barriers for the reason that the leaders stay out of their way.

This implies that when laissez-faire is applied to a workplace, the performance and

productivity of an employee will increase, as well as their job satisfaction.

Productivity

Productivity of an employee plays a vital part in an organization since employees

are the most important asset of the company (Harness, 2018). They are the deliberate

ones in making a product of the company or service portfolio as well as the workers

behind the success of a company. Hence, a company must invest for their employees

too, just to boost their productivity in making the workplace more dynamic enough. In
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that way, they will also get a return on that investment that they gave. In addition to that,

Sanders (2019) stated that employees’ productivity is crucial to the success of any

business. The more efficient and productive the employees are, the more successful the

business will be.

Most employees start their days with hopes in achieving productivity (PhilStar,

2017). In order to finish the task, it must be taken by one at a time to prevent pressure

inside the workplace. In addition to that, a person who accomplishes more than one

task at a time can actually be more harmful. A constant task not only affects the work

efficiency at the moment but it also prevents the bad brain habit that will result to

cognitive decline in the long run effects in an individual’s personal health.

According to Kong (2017), being productive is an essential thing but is quite

difficult to achieve due to things around that can drain everyone’s eagerness inside the

workplace to become a more productive individual. That crucial thing must be

eradicated or simply removed so that a worker can perform their best everyday to

accomplish all assigned task. No matter what went wrong, whether it is a very small

thing or very important thing, it will affect the employees’ performance inside the

workplace.

In the study undertaken in De La Salle University, the researchers studied about

the labor productivity in the Philippines. Lim and Bautista (n.d.), analyzed the movement

and changes in labor productivity. Later on, they found out that labor productivity is

procyclical, positively responding to changes in economic activity.

As stated by Leblebici (2012) in his study, workplace environment plays a crucial

role for the employees’ productivity. Attendees agreed that relation with superiors at the

workplace affect their productivity. Supervisors’ interpersonal role is important to have

positive relation with the employees and to increase the employees’ self-confidence.

Fair treatment also motivates the workers to accomplish their tasks with full interest.

This will diminish their insecurities inside the workplace. In addition to that,

communication encourages better teamwork within the organization. This will lead to the

gain of trust and loyalty of the leader from the workers. Moreover, the results of the

study by Anjum, Ming, Siddiqi & Rasool (2018), ostracism, incivility, workplace

harassment and bullying have direct negative significance on job productivity. This

means that toxic workplace environment and the factors of it should be avoided by

organizations to ensure the comfortability of every employee that leads to job

productivity. With this productivity, there is a big possibility that the organization will

ensure success and prosperity. Furthermore, according to the study by Saludo, Virtus &

Win (2015), the employees of Ajinomoto Philippines Corporation are satisfied on how

they are being handled inside the organization. The employees are pleased with the

working environment and the interpersonal relationship inside the workplace. This

makes them motivated to their job, resulting to higher level of productivity and

performance. Lastly, an employee cannot work diligently and enthusiastically if the

workplace makes them feel miserable (Mann, 2019). Thus, it will result in poor

productivity inside the company.

Goren (2018) stated in his study that employee productivity is somehow

workforce productivity wherein the employees are working in an efficient way.

Productivity may be estimated in terms of outputs of an employee in a period of time.

The results also showed that there is a significant relationship between leadership

styles and employees’ productivity wherein the kind of leadership style employed in the

organization will

determine the productivity level of an employee. Moreover, according to the study of

Rok and Zlatko (2017), employee productivity is a vital part in influencing the whole

organization to become a more dynamic corporation. The study also implies that the

factor that affects the productivity of an employee is the organizational objective. The

goal of the company is the goal of the employees thus, an excellent goal will make the

employees more productive for the reason that they have a full desire in achieving the

true objective of the company.

Synthesis

In accordance to the employees' productivity, one should know the appropriate

leadership styles to employ on her/his subordinates to meet such objectives and goals.

Leadership styles caters how leader influence her/his team members to perform well

and to work better by leading, motivating, and inspiring the towards success and

progress. Different leadership styles may affect the effectiveness and performance of an

organization. The following are the types of leadership style: autocratic, democratic, and

laissez-faire. Autocratic leadership style is a leadership style where leaders are the one

who is responsible and has the strength and the power to make decisions without even

looking forward to the input and suggestions by the team members. This action will

surely show a definite border between the leaders and team members. Employees

should only follow the things that the leader tells and they do not even have the rights to

tell and speak out loudly their decisions and opinions in such things. There are

circumstances that some individuals gain more self-confidence when someone is ruling

them. However, there is still a negative impact about this leadership style. Some

employees on an organization may not want to work coerce and compulsory and this

can end up in chaos and trouble. Another leadership styles that can affect the
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Tongco St., Maysan, Valenzuela City

employees' productivity is the laissez-faire. Laissez-faire leadership style can be

implemented to organization with members who have skills and experience already. In

this leadership style, employees' can do their work by themselves. Leaders does not

check them up time to time and just do a minimal supervision. This can be the cause of

poor production, lack of control and increasing costs that is not good to the company.

However, some employees tend to be more comfortable on this leadership style for the

reason that they like freedom. They are free to express their opinions, suggestions, and

even make decisions. Any of this leadership styles can affect employees' productivity. A

company should invest to boost the productivity of the employees. In return, the

company will benefit too. It is easy to achieve success if employees are productive.

Moreover, employees' productivity is important in influencing the company to be more

dynamic.