Leadership Style Impact On Job Stress & Employee Turnover

“Research Methodology” Dr. Mohamed Saad Mohamed Eslsca “34 A” By: (1) Nabil Tawfik (2) Salma El Tanbouli (3) Essam Younis

(4) Maher Ali Maher

for which the experienced leaders inspire the sales people through continuous training and encouragement and lead them by vision. Therefore. and job stress and turnover intention. Research Variables: (1) (2) (3) (4) Leadership Style: Independent Variable. leader’s leadership type is the critical factor for the success of the organization. subordinate’s personality characteristic. (6) Job stress has mediation effect on the relationship between leadership style and turnover intention. Personality Characteristic: Moderating Variable. Job Stress: Mediating Variable. (3) Leadership style has negative influence of turnover intention.INTRODUCTION For recent years. The insurance industry focuses on close contact among clients. sales people and managers. (5) Personality characteristic brings no moderating effect on the relationship between job stress and turnover intention. Life insurance and retirement planning which have quite a lot to do with insurance industry are questions of interest. (2) Job stress has positive relationship with turnover intention. Turnover Intention: Dependent Variable. The specific research objectives are listed as follows: (1) Leadership style has significant influence on job stress. . We also identify the role of the variable of personality characteristic and job stress respectively. (4) Personality characteristic has no moderating effect on the relationship between leadership style and job stress. That is a human-oriented industry. This research explores the relationships among leader’s leadership style.

LITERATURE REVIEW Leadership Style: The practice and academic circles agree that leadership is really an important subject in the field of organizational behavior. Richards & Engle (1986) defined leadership as about establishment of vision. In latter days. In other words. Thus.The leader’s ability to adapt to internal and external environment changes and lead a group of cordial subordinates to work together is the key to success. (4) To explore the moderating role of personality characteristic on leadership style and job stress respectively. job stress and turnover intention. this research explores the relationships among the leader’s leadership style and the subordinate’s personality characteristic. whether a management is able to execute “collaborated effort” depends on leadership capability. (5) To explore the mediating effect of personality characteristic and job stress respectively. This research also studies the role of the variable of personality characteristic and job stress respectively and gives advices to managers to lower the turnover rate in the life insurance industry. value and . (3) To explore the influence of different leadership style on the turnover intention. Leadership is one with the most dynamic effects during individual and organizational interaction. The specific research objectives are listed as follows: (1) To explore the influence of leadership style on the subordinate’s job stress. Stogdill (1957) defined leadership as the individual behavior to guide a group to achieve the common target. (2) To explore the influence of job stress on turnover intention. The excellent leader not only inspires subordinate’s potential to enhance efficiency and also meets their requirements in the process of achieving organizational goals.

negotiation and compromise so that the staff trades his work for rewards. (1957) Stogdill: Leadership is an influential activity to others organization to achieve the target set by the leader. (1990) Jacobs & Jaques: Leadership helps others to strive and to enhance aspiration to achieve the target. (1957) or Bowers: Leadership is an activity process of interpersonal relationship. other’s behavior is influenced through this process to achieve the set target. Definition of Leadership: Hemphill & Coons: Leadership is the individual behavior to guide a group to achieve the common target. the individual action. faith and target are influenced by the others under volunteer cooperation. Johns & Reller: Leadership means. (1993) . (1977) Morphet. (1986) Sergiovanni: Leadership means the leader satisfies the staff’s demand by use of consultation. Definitions on leadership defined by selected authors were summarized into the following. behavior. (1982) Richards & Engle: Leadership is about establishment of vision.creation of environment so that the objective can be accomplished. (1990) Robbins: Leadership is the ability to influence the group to achieve the target. (1969) Davis: Leadership means persuasion on others to enthusiastically chase for certain target. value and creation of environment so that the objective can be accomplished. in the social system.

and the established mission is accomplished. Actual behavior or leadership styles are emphasized. (2) Behavioral theory from late 1940s to late 1960s--. Ohio State University proposed “consideration” and “initiating structure” of leadership behaviors.Yukl: Leadership is the process of influence on the subordinate. the group is maintained in cooperation. and the support from external group is obtained. Stogdill (1948) proposed twelve leadership related studies and was considered as representative of this period. it is generally divided into four periods: (1) Traits theory in 1930s--. The so-called quality can be divided into physiological and mental aspects. These innate qualities are not found in others. in which the subordinate is inspired to achieve the target. These leadership behaviors may be trained or learned through experience. (1994) Northouse: Leadership is exchanged relationship between leader and subordinate. (2003) After reviewing studies on leadership theory conducted in the past.(2001) Fry: Leadership means use of leading strategy to offer inspiring motive and to enhance the staff’s potential for growth and development. The physiological aspect includes: height.It focuses on the innate leadership qualities and competence.This theory states that there is no set of optimum leadership model in this world and that it depends on the situation encountered. confidence.It believes that a leader will be able to achieve ideal organizational efficiency if he demonstrates effective leadership behaviors. and aggressiveness etc. Consideration is a behavior that focuses on strengthening relationship with subordinates based on their needs and perceptions. weight. and vigor while the mental aspect includes intelligence. looks. (3) Contingency theory in late 1960s--. while “initiating structure” is a behavior that focuses on subordinate performance in goal accomplishment. Representative research is conducted in Ohio State University. Situational leadership theory .

2003). enhance subordinate potential and development. When the individual feels job stress. Peng (1998) states that psychological stress is neither stimulus nor reaction but a handling method or relationship. 1974). Among which. and (3) Charismatic leadership theory refers to the follower’s perception toward certain behaviors of the leader as being heroic or extraordinary. 2001). anxious and . In other words. 2003 ; Northouse. Transactional leadership is the basis for most leadership theories. it is the interaction between the individual and the environment. It focuses on the exchange relationship between the leader and the subordinate (Fry. incentive elicits work performance. it usually comes along with following symptoms: (1) Psychological aspect: passive. (2) Transformational leadership: to enhance staff’s trust and respect for leader by altering intrinsic work value and faith of staff at the same time in order to elicit work capabilities. It states that leaders need to adopt the most optimum leadership style based on different organizational situations. transformation leader provides incentives for subordinates. (4) Contemporary leadership theory since 1970s---The viewpoint of contemporary leadership theory states that leadership is a type of interactive process with the environment. Fiedler’s contingency theory (1967) is most well-known. Because “charisma” is viewed as an essential element. (Fry. Job Stress: Job stress means improper occupational stress or burden that badly affects the psychological and physical condition of the worker himself (Kroes. Bass & Avolio (1990) proposed transactional leadership and transformation leadership: (1) Transactional leadership: encouraging subordinates through incentive establishment. which gains or consumes resources of human behavior and endangers the individual health. disconsolate.began its development subsequently.

or reaction result against threat of balance condition.anger. (1956) French: Stress is the consequence that an individual’s ability or skills fail to coordinate with the job or the job environment cannot satisfy the individual demand. (1974) Beehr & Newman: Stress is the change that drives the worker from normal psychological and physical condition.(1971) Kroes: Stress is improper occupational pressure or burden which badly affects the psychological and physical condition of the worker himself. sleepless and disturbed. The definitions of various authors were summarized in the following. Definition of Job Stress: Seley: Stress means uncertain reaction of the body to demand. (1978) Ivancevich & Matteson: Stress is some adaptive reaction. and such reaction takes personal character as intermediary. absence from work. (1980) Fleming et al. (3) Behavioral aspect: change of living behavior. (1984) Jamal: Stress is one’s reaction against threat in the working environment. and also basic demand from internal or external environment.: Stress is a conceptualized process and contains one’s recognition and reaction to danger or threat. headache. decrease of job involvement. a consequence of special psychological or physical demand from the event. (1985) . (2) Physical aspect: imbalance incretion. and turnover.

which generates a lasting and special characteristic different from the others. (1998) . (1997) Robbins: Personality is one’s reaction to the others and consequence of interaction with others. environment. it’s also a specific and lasting behavioral pattern.Peng: The psychology claims that job stress is neither stimulus nor reaction but some handling method or relationship. Friedman & Rosenman (1959) categorize personality characteristics into type A and B. At different time and condition. it adapts to different environment by unique behavioral mode and thinking method. and social factor. culture. (1972) Lee: Personality characteristic means psychological attributes of affection and thought among people. (1998) Personality Characteristics: Personality characteristic means one’s psychological and physical phenomenon. (1959) Allport: Personality means dynamic behavior from psychological and physical aspect to adapt to the environment. Type B has more patience and pays less attention to competition and sense of achievement. (1970) Scott & Mitchell: Personality is formed from accumulation of psychological growth and development. Definitions of Personality Characteristic: Guilford: Personality characteristic is a combination of individual trait and property. Type A shows exuberant ambition and aggression. (1961) Pervin: Personality represents structure and dynamics from reaction to the environment. (1985) Lu: The formation of personality is affected by gene.

(1978) Bluedorn: It is differ from actual turnover behavior which is influenced by more external element. Fleishman (1964) found that consideration in the leader behavior has negative connection with the job stress. Fleishman & Harris (1962) in the study of the influence of various leadership types on turnover rate and complaint rate found that consideration for the subordinates is negatively connected with the turnover. (1973) Kraut: The best anticipation for turnover. Definition of Turnover Intention: Porter & Steers: Retreating behavior from job dissatisfaction. 1978).Turnover Intention: Turnover intention means the subjective perception of the organizational member to quite the current job for other opportunity (Fan. (1975) Fishbein & Ajzen: The best measurement to presume the worker’s turnover behavior. (2) In research of leader behavior and turnover intention.(1975) Mobely: Idea of leaving the current organization or post. personality characteristic and turnover intention are described as follows: (1) In research of leader behavior and job stress. (1982) Tett & Meyer: Perception of a series of retreating cognitions. job stress. while the initiating structure is positively connected with job stress. . Table 4 showed definitions of turnover intention defined by various authors. (1993) Empirical Studies: The verification researches made by the domestic and foreign scholars on leadership.

(1999) Sample: 194 staffs of Tainan Revenue Service Office. Chang (1998) chose employees of Taiwan Sugar Company as research subject and indicated that those with type A personality characteristic had higher perception of job stress and show more physical and psychological discomfort reactions. Empirical Result: The research result indicates no significant variance between male and female on job stress. disconsolation. Empirical Research Author: Chiu. yet the overall job stress does not reach significant level. low self-respect than those people with B-type. (2000) Sample: Research of job stress and job satisfaction on 174 hightech employees. (3) In research of job stress and turnover intention.while the initiating structure is positively connected with turnover. Empirical Result: Worker’s seniority has positive connection with . Chang (2003) released 260 questionnaires to 11 schools and revealed that personality characteristics had no significant impact on turnover intention. (1994) Sample: 2. (4) In research of personality characteristics and job stress.400 employees of Taiwan Semiconductor Manufacturing Co. (5) In research of personality characteristics and turnover intention. Author: Fang. Parasuraman & Alutto (1984) in the research on 217 employees at the food manufacturing company indicated that job stress had positive connection with turnover intention. Empirical Result: People with A-type personality characteristics perceive more anxiety. Author: Chuang.

we have a great interest in exploring the relationships among leadership style. (2003) Sample: 260 contractual personnel at 11 schools. The turnover rate of life insurance salesmen keeps high because of such job compensation without base pay and suffering from heavy stress that is hard to be accepted by the people. The service it offers is intangible and the services of competitors are highly similar. the leader’s leadership style is very important for the performance achievement of organization.job stress. RESEARCH METHOD Research Framework: Insurance is human-oriented business. Therefore. for which the salespeople must face keen competition and challenge from competitors. Author: Chang. job stress and turnover intention. The experienced leader is well aware of this fact and keeps training. . personality characteristic. (2001) Sample: 180 high-tech industry and 255 traditional industries. assisting and inspiring the sales personnel. Empirical Result: People with A-type personality characteristics perceive job stress more serious while. Author: Tzeng. Empirical Result: The research result finds that personality characteristics have no evident influence on turnover intention. This research also tries to identify the role of variable for personality characteristic and job stress respectively. those who with B-type perceive the least. Therefore. Framework of this research is shown as Figure1.

Personality Characteristic A type B type H4 Leadership style Transformation Transaction H1 H6 Job Stress H5 H2 Turnover Intention intention H3 Research Hypotheses: If the organization intends to keep outperforming in the violently competitive environment. leadership is the most influential factor. Hsu (1986) conducts research on 222 operators of China Steel Company in Kaohsiung on the relationship among leader’s personality . The leader’s ability to adapt to internal and external environmental change and lead a group of cordial subordinates fighting together is one of the keys to success. We learn from the above literatures that the leader’s leadership style has significant influence on the staff’s job stress and turnover intention. this research develops following hypothesis based on the research framework: Different leadership style has different impact on the subordinate’s work willingness. The objective of this research is to explore the relationships among leadership style and salespeople job stress and turnover intention and the role of personality characteristic and job stress respectively. Thus.

job absence. The research indicated that consideration leadership had significantly negative connection with job stress. turnover rate and complaint rate. Therefore. envy and suspicion. turnover. etc. H3a Transformational leadership has negative influence on turnover intention. Therefore. the leader behavior. we develop hypotheses as below: H3 Leadership style has significant influence on turnover intention. leader’s leadership style.characteristic. the staff’s job stress and job satisfaction. Hence. Wang (1990) made his research on the subject of connection among employee with A-type personality characteristic. and employee’s job stress” and found that people with A-type . H2 Job stress has positive influence on turnover intention. Fleishman & Harris (1962) conducted research on relationships among leadership style. H3b Transactional leadership has positive influence on turnover intention. we propose the hypothesis as follows. indifference to colleagues. Parasuraman & Alutto (1984) studied 217 employees of food manufacturing company and found that job stress had positive connection with turnover intention. the developments of hypotheses are shown as below: H1 Leadership style has significant influence on job stress H1a Transformational leadership has negative influence on job stress H1b Transactional leadership has positive influence on job stress Job stress is usually generated along with change of productivity such as passive job involvement. the leadership style and job stress are negatively connected. The research result reveals that consideration leadership style (transformational) has apparently negative connection with turnover. but the initiating structure positively connected with job stress. while initiating structure (transactional) is positively connected with turnover. efficiency drop.

Cheng(2005) 5 Wei(2004) This research chooses sales personnel of local insurance companies . Research Design According to the purpose of the paper.personality characteristic perceive more job stress than those with B-type. while ones with B-type feel apparently more job stress at low self-respect post than those of A-type. on the on the H6 Job stress has mediation effect on the relationship between leadership style and turnover intention. Measurement of Constructs Construct ite m 25 20 5 8 14 Chen(1981) Lin(2002) measure Leadership style Transformation Transaction Job stress Personality characteristics Turnover intention Chu(2002). we develop structural questionnaire that revised from other’s inventory. H5 Personality characteristic has moderating effect relationship between job stress and turnover intention. Thus. H4 Personality characteristic has moderating effect relationship between leadership style and job stress. A 5-likert scale is used. hypotheses are developed as follows. The measurement of constructs is shown in the following table.

Based on results of the pretest. effective response rate at 80%. readability. . minor changes were made to select questionnaire items. and ambiguity.as the subject and collects data by convenient sampling method. and the instrument were sent to 220 employees of insurance companies. for which 176 returned mailings are valid. The survey instrument was initially pre-tested by 50 employees of M insurance company for content.

Such result differs from those of previous researches and property of such industry may probably be the reason.CONCLUSIONS AND SUGGESTIONS Conclusion We choose the insurance industry as the object of study and explore the interrelationship between leadership style and job stress and turnover intention. Job stress usually results in psychological and physical discomfort. This research also investigates the variable role of personality characteristic. which has something to do with the characteristic of insurance industry because the insurance employees have no base pay and the majority of their income comes from sales bonus. (4) The verification indicates no interfering effect on the relationship between personality characteristics and leadership style and job stress. Different personality characteristic does not moderate the leadership style and high compression resistance of the insurance operators. (5) Personality characteristic brings no moderating effect on the relationship between job stress and turnover intention. transformational leadership style has negative influence on job stress. and then turnover intention increases. personality characteristic of insurance salespeople are more enthusiastic and compression resistant than that of other business. the conclusions are generated as followings. if the transformational leadership gives more consideration and encouragement. According to the result of empirical analysis. The bonus system of insurance industry retains . (3) The style indicates that leadership style has negative relationship with turnover intention. (1) For the insurance operators. (2) Job stress has positive relationship with turnover intention. Under such bonus system. the employees will be aroused instinct of compression resistance for gaining high income. Generally speaking.

following suggestions are provided for management. (6) The verification indicates that job stress has bigger indirect effect on leadership style and turnover intention than the direct effect. Limitations (1) Limitation of Research Scope Because the research object is the insurance industry only. the relationship among the insurance leader’s leadership style and the subordinate’s personality characteristic. personality characteristic brings no interfering effect on job stress and turnover intention.salespeople sticking to the post in order to keep getting commission from the client’s policy premium. Therefore. (1) Transformational leadership is used to help the subordinates aware that rewards need making efforts. So. it’s not easy to generalize the research result to other industry. (2) Insurance job has no base pay and the salespeople are highly autonomous. According to the conclusion of this research. Proper encouragement and consideration are required to raise the eager for future vision and accomplishment of mutual goal. (2) Limitation of Research Variables . The leader should spend more time in assistance and communication so that the subordinates understand real stress comes from economic income pressure but not from the job itself. job stress has mediation effect on relationship between leadership style and turnover intention. Managerial Implications: This research chooses insurance industry as object and expects to explore. through regression analysis. job stress and turnover intention.

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