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TRANSFORMATIONAL LEADERSHIP AND ITS IMPACT ON EMPLOYEE
COMMITMENT IN A DOWNSIZING GOVERNMENT AGENCY
By
Dennis A. Gentry
A DISSERTATION
Submitted to the
H. Wayne Huizenga School of Business and Entrepreneurship
Nova Southeastern University
2005
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UMI Number: 3164828
Copyright 2005 by
Gentry, Dennis A.
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UMI
UMI Microform 3164828
Copyright 2005 by ProQuest Information and Learning Company.
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A DISSERTATION
ENTITLED
By
Dennis A. Gentry
Approved:
errell Manyak,
.o Ay.
myak, Ph. n- Date
Chairperson
y/27/e>S'
Bahaudj^f Mujtaba, D. Date
Committee Member
0 y
Denise Wooa, P'fXfe. Date
Committee Member
y/zj/es
Russe^tlL Abratt, PhD. Date
Chaik J Doctoral Programs
2 <Vv<
:ston Jones, D.B.A. Datte/
ssociate Dean, H. Wayne Huizenga School
t>f Business and Entrepreneurship
2005
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CERTIFICATION STATEMENT
Signed:
Dennis A. Gentry
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ABSTRACT
By
Dennis A. Gentry
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Dennis A. Gentry
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ACKNOWLEDGEMENTS
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TABLE OF CONTENTS
Page
List of Tables..................................... xi
Chapter
I. INTRODUCTION.................................. 1
Introduction................................. 1
Background of the Problem................... 2
Legislation and Regulations Leading to
Development of the FAIR Act................. 4
The Federal Activities Inventory Reform
(FAIR) Act of 1998........................... 7
Organizational Background of the Agency
Being Studied................................ 8
The FAIR Act Impact on the Organization..... 11
Purpose of the Study......................... 14
Significance of the Study................... 15
Assumptions.................................. 16
Structure of the Study...................... 17
Chapter Summary.............................. 18
Introduction................................. 20
The Evolution of Leadership Theory.......... 21
Trait Theory............................ 21
Style Theory............................ 23
Situational Leadership Theory.......... 26
Contingency Theory..................... 27
Path-goal Theory....................... 28
Leader-member Exchange Theory.......... 31
Team-leadership Theory................. 33
Transactional Leadership Theory........ 34
Laissez-faire Leadership Theory........ 35
Section Summary......................... 37
v ii
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Chapter Page
Historical Perspective of
Transformational Leadership................. 38
Transformational Leadership Defined......... 40
Transformational Leadership................. 42
Gender Influence on Transformational
Leadership.............................. 48
Cultural Influence on Transformational
Leadership.............................. 50
Section Summary......................... 52
Historical Perspective of Organizational
Commitment................................... 52
Organizational Commitment Defined........... 54
Organizational Commitment.............. ...... 58
Organizational Commitment Theory Used
in this Study........................... 64
Section Summary........................ 67
Impact of Transformational Leadership on
Employee Commitment in the Public Sector 67
Impact of Downsizing on Employee Commitment... 70
Research Question............................ 73
Chapter Summary.............................. 74
IV. RESULTS...................................... 91
Introduction................................. 91
Sampling Techniques......................... 92
Demographic Characteristics................. 93
Multifactor Leadership Questionnaire
Analysis..................................... 99
Transactional Leadership Style.............. 100
Transformational Leadership Style........... 101
Laissez-faire Leadership Style.............. 102
viii
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Chapter Page
Overview..................................... 124
Demographic Characteristics and
Organizational Relationship................. 128
Leadership Style Findings................... 130
Organizational Commitment Findings.......... 132
Leadership Style and Organizational
Commitment Relationship..................... 133
Research Question and Hypotheses............ 135
Limitations on the Study.................... 137
Conclusion................................... 138
Recommendation for Future Research.......... 141
Chapter Summary.............................. 142
Appendix
ix
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Appendix Page
REFERENCES CITED.................................. 17 0
BIBLIOGRAPHY...................................... 191
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LIST OF TABLES
Table Page
xi
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Table Page
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LIST OF FIGURES
Figure Page
x iii
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Chapter I
INTRODUCTION
Introduction
question.
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2
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3
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traditional leadership styles are not producing committed
1970).
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5
1996, 1998, 1999, and 2003, the OMB Circular A-76 was
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6
(OMB, 2002) .
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1998
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8
• Teamwork
• Results orientation
• Professionalism
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9
taxpayers.
class workplace.
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10
requirements.
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11
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work inventories affected by the FAIR Act. A partia
• Cleaners
• Maintenance Workers
• Mechanics
• Shipping Clerks
• Equipment Operators
• Administrative Personnel
• Procurement Clerks
etc. )
• Construction Estimators/Managers
• Project Managers
• Engineers/Architects
• Marketing Personnel
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13
year of 2004.
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14
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15
study may identify how the agency can train its managers
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16
Research Question
Assumptions
assumptions include:
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employees.
commitment.
employees.
perception.
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18
Chapter Summary
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employees.
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Chapter II
LITERATURE REVIEW
Introduction
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employee commitment.
Trait Theory.
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22
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23
Style Theory.
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Table 1.
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and relationship.
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26
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27
development level.
Contingency Theory.
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28
world settings.
Path-Goal Theory.
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given work situations. Focus is placed on the
Path-Goal model.
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30
Table 2.
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31
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32
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33
Team-Leadership Theory.
effort.
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34
(Northouse, 2001).
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35
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worker performance.
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37
Table 3.
Transformational
• Visioning
• Inspiring
• Stimulating Beyond Expectations
• Coaching
• Team-building
Transactional
• Rewarding Meets Expectations
• Coaching
Laissez-faire
• Avoiding Below Expectations
Section Summary.
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38
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39
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40
continues today.
al, 2003).
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41
the purposes and mission of the group, and when they stir
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42
Transformational Leadership
leadership styles.
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43
• Individual Consideration/Interactivity -
et a l ., 2000) .
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44
success.
enthusiasm.
followers.
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45
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46
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47
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48
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49
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50
2002 ) .
leadership.
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51
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52
Section Summary.
influences.
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53
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54
Table 4
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55
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1977, P. 62) .
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48) .
533) .
1979, p. 26) .
1992)
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58
1997, p. 11).
Organizational Commitment
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59
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60
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61
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Figure 1
1. Antecedents 2. Outcomes
Personal C haracteristics
(need fo r achievem ent,
age, education)
O utcom es
D e sire to rem ain
In te n t to R em ain
Job C haracteristics O rg an iza tio na l
(task id e n tity , o ptio n al C om m itm ent
A ttendance
in te ra ctio n , feedback)
E m ployee R etention
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64
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retention.
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66
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Section Summary.
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68
commitment.
Figure 2
Organizational Outcome
R esults in * L o y a lty is up
C o m p e titive A dvantage < --- * O rg an iza tio na l C o m m itm en t
is up
* Job S a tisfa ctio n is up
* M o ra le is up
* Job P erform ance is up
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69
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enhanced.
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71
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72
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73
Research Question
Hypothesis 1
government e m p l o y e e s .
employees.
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Hypothesis 2
process.
Hypothesis 3
Chapter Summary
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75
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Chapter III
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Hypothesis 1
government employees.
employees.
Hypothesis 2
process.
process.
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Hypotheses 3
commitment.
Research Design
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79
whole.
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80
survey questions.
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81
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82
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83
software.
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relationship significance.
organizational commitment.
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85
organization.
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measure.
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87
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commitment.
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Chapter Summary
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hypotheses, data analysis procedures, the survey
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91
Chapter IV
RESULTS
Introduction
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leadership styles:
Sampling Techniques
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Demographic Characteristics
areas.
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Table 5
Table 6
Analysis of the Respondent’s Age
Age Frequency Percentage Cumulative %
<25 4 2 2
26-35 17 8 10
36-45 35 17 27
46-55 95 46 73
> 55 57 27 100
Totals N= 208 100 100
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organization.
Table 7
Analysis of Respondent's Race
Race Frequency Percentage Cumulative %
Caucasian 156 75 75
African American 40 19 94
Native American 3 1 95
Asian 3 1 96
Other 7 3 99
Totals N= 208 99 99
Note: Rounding may provide responses less than 100%.
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Table 8
Analysis of Respondent's Education
Education Frequency Percentage Cumulative %
Level
High School < 16 8 8
Some College 57 27 35
College Degree 95 46 81
Graduate Degree 40 19 100
Table 9
Totals N= 208 99 99
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above.
Table 10
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Table 11
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Table 12
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questions.
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scales.
Appendix F).
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to 1 (once in awhile) .
Table 17
Q. 14 Is absent w h e n needed 45 24 15 10 5
Q. 35 A v o i d s m a k i n g decisions 51 18 12 12 7
Q. 4 0 Delays r e s p o n d i n g to u r g e n t 48 19 18 11 4
questions
Table 18
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Extra Effort.
scales.
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Table 19
Table 20
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Effectiveness.
Table 21
Q. 50 Is e f f e ctive in m e e t i n g 6 8 14 34 41
organi zatio nal requirements
Table 22.
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Table 22
Satisfaction.
Table 23
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Table 24
Q. 48 2. 62 3.0 1. 93 1.39
each item within the scale and then divided by the number
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Table 25
Inspirational
Motivation 4 10.84 2 .71
Intellectual
Stimulation 4 9.40 2 .35
Individual
Consideration 4 9.28 2.32
Attributed
Charisma 4 10.36 2 .59
Contingent
Reward 4 10.68 2. 67
Management
by Exception 4 5. 64 1.41
(passive)
Management
by Exception 4 6. 92 1.73
(active)
Laissez-
Faire 4 4.12 1. 03
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110
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Ill
Appendix F ) .
(1979).
(#53, 54, 58, 60, 62, 63, 65, & 66), six continuance
commitment questions (#55, 59, 61, 63, 64, & 67), and two
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4.83 respectively.
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best fit.
Table 28
Commitment 1.00
Ma n a g e m e n t - b y - -0.399* -0.395* 1. 00
Exc eption
(passive)
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Figure 3
70.00
60.00
50.00
« 40.00
©
>
©
30.00
♦Y
I 20.00
■ Predicted Y
i 10.00
10.00
- 20.00
30.00
Transactional Leadership Means
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115
Table 29
C h a ri sma 0.480* 1. 00
(Attributed)
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Figure 4
70.00
60.00
♦ ♦
50.00
■§ 40.00 ♦:* •
J 30.00
♦ ♦♦ .
♦* * * ♦Y
» ♦ ■ Predicted Y
♦7
§ 10.00
E
O 0.00
0 .1 0 * l5>0 2.00 3.00 4.00
- 10.00
♦
♦
- 20.00
-30.00
Transformational Leadership Means
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best fit.
Table 30
C ommitment 1. 00
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Figure 5
70.00 -r
♦
60.00 *♦
50.00 11 ♦ * ♦ * * *
_ 40.oo i : | • i * ♦
> *
® 30.00 ^ * * *
* ft ♦ ■ I ♦Y
£ 20.00^ ♦ !
I .. .1 **♦♦ . '•
■ Predicted Y
£ 10.00 -
♦
o ° ♦ t*
O ♦ » ♦
0.00 — i—
3
- 10.00
- 20.00
-30.00
Lassez-Fair management means
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Figure 6
70.00 -i
60.00
50.00 -
40.00 -
♦♦♦ ♦
30.00 -
♦Y
20.00
■ Predicted Y
10.00
0.00 -
- 10.00 -
- 20.00 -
-30.00 J
Combined Leadership Style Means
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often.
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Chapter Summary
organization.
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Leadership Questionnaire.
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CHAPTER V
Overview
the history of the FAIR Act, the FAIR Act components, the
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level of commitment.
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126
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127
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others.
of service.
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129
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130
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"infrequently".
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all the survey guestions was 4.89 and the range was 2.80
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133
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two variables.
variables.
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variables.
answered.
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136
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study.
Conclusion
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139
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140
FAIR Act.
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that may help identify the reason for the high level of
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142
Chapter Summary
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143
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APPENDIX A
REQ UEST FO R A P P R O V A L TO SU R V E Y AG EN C Y
AND
A P P R O V A L TO SU R VEY
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145
j 0 Dennis A. Gentry-
"CONFIDENTIAL"
12/07/2004 08:47 AM
cc
bcc
Subject P'e; Electronic Survey Request®
D ennis,
It seem s that the results o f your study w ill benefit managers to better cope with the effects o f A76
initiatives and to strengthen the Q12 program. Therefore, you m ay use the em ail system to conduct
the survey.
Please w ork with to set up the survey. Best o f luck in your efforts.
Dennis A. Gentry
Dennis A
Gentry To "C O N F ID E N T IA L "
cc
12/06/2004 05:09 PM Subject Electronic Survey Request
"CONFIDENTIAL"
As part o f my doctorate program, I selected to write m y dissertation on the "Im pact of Transform ational •
Leadership on the C om m itm ent Level of G overnm ent Employees". It is my desire to survey the approx
500 em ployees in to obtain my research data to complete my dissertation. The survey will
consist o f a cover letter, approx 70 questions, and it w ill be distributed and retrieved through the Lotus
Notes em ail system. Completion of the survey will be voluntary. I would like for the survey to be in the
em ail system for 10 w orking days, with a reminder on the seventh day asking employees who' have not
com pleted the survey to do so. I w ill aiso require assistance in establishing the data-base for the
e lectronic survey.
The su rve y being used has been tested and validated by experts.The survey consists of three parts;
Part 1 w ill obtain dem ographic inform ation relating to em ployee age, gender, pay grade, time with the
agency, and position type. Employee names or work locations will not be part of the survey to maintain
anonym ity. This portion of the survey will be created by me and tailored to fit
Part 2 w ill gather em ployee’s perception o f their m anager's leadership style and the effectiveness of that
style.
Part 3 w ill assess the em ployee's level of com m itm ent to the organization.
The benefit of the survey is two-fold. First, I obtain research data to complete my dissertation and
obtains valuable data relating to its em ployee's perception of the organizational leadership and
com m itm ent levels. "
S pecific benefits obtained from this study for includes:
1. Identifies current leadership styles being utilized.
2. Identifies the most effective style o f leadership.
3. Identifies the com m itm ent level of em ployees by age, gender, pay grade, and position type and
NOTE: Areas left blank were removed to maintain the anonymity of the agency.
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146
4. Identifies the impact the FAIR Act has on. employee's well-being and jo b security.
5. Identifies the employees perception of management's responsibility fo r o r caring about
them as employees.
If approved, I w ill provide with a copy of my dissertation along with a report tailored for use,
which w ill contain an executive sum m ary and all results obtained from the survey.
Although is the agency being studied, no reference to our agency's name w ill be in the dissertation
nor will any em ployee other than those requiring a need-to-know fo r approval of this request know the
survey is related to studying the im pact the FAIR A ct may have on the organization's em ployees
Respectfully,
Dennis
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APPRENDIX B
AND
P E R M IS S IO N TO U S E A N D R E P R IN T S U R V E Y
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D ecem ber 2 0 ,2 0 0 4
M r. D e n n is A . G e n try
1403 B ro a d vie w C irc le
S e v ie rv ille , Tennessee 37876
M r. R ob M o st
M in d G arden, In c.
1690 W oodside R oad, S uite 202
R edw ood C ity , C a lifo rn ia 94061
D ear M r. M o st;
R e sp e ctfu lly,
D en n is A . G entry
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m f n d garden
Permission Set
D istrib u ted b y M in d G a r d e n
1690 Woodside Road Suite 202, Redwood City California 94061 USA
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APPENDIX C
R E Q U E S T FO R S U R V E Y P A R T IC IP A T IO N
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151
January 5, 2005
D e a r C olleagues;
The survey consists o f three parts and is designed to gath er in fo rm a tio n regarding
dem ographics, m anagem ent leadership styles, and the co m m itm e n t le v e l o f the agency’ s
em ployees. T h e survey is structured to analyze the data c o lle c tiv e ly , w hereby no one
respondent o r m anager can be singled o ut. In fo rm a tio n y o u p ro vid e in th is survey w ill
be c o n fid e n tia l. The survey w ill be rem oved fro m the L o tu s N otes e m a il system on
January 18, 2005.
D e n nis A . G e n try
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APPRENDIX D
S U R V E Y IN S T R U M E N T
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Leadership and Employee Commitment Questionnaire
Part I. Demographics
Directions: Answer the question which best matches your demographic information by
selecting the most appropriate response. All responses are completely
confidential and anonymous
Questions 1-7
Gender: I
Age:
I
Race:
Education:
__
Work Position:
hi 1 I d i 1 ti i I mi M i O li i [’
Y ears in Service:
i i
n
Pay Grade:
EP98HR
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154
Part H This portion o f the questionnaire is developed to describe the leadership style of
your manager/supervisor as you perceive it. Please answer all questions. .
Directions: Answer the question which best matches your perception of the.person you are
describing by clicking on the circle following the appropriate response. Use the
following rating scale:
0= Not at all
1= Once in-a while
2= Sometimes
3= Fairly often
4= Frequently or always
Questions 8-53
Makes clear what one can expect when performance goals are achieved
Shows that he/she is a firm believer iri"If it ain't broke, don't fix it"
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155
A c ts i n a w a y th a t b u ild s m y re s p e c t
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156
Part IH. - This portion o f the questionnaire is developed to describe your commitment to the
organization. Please answer all questions.
Directions: Answer the question which best describes your degree of agreement/disagreement
with each statement by selecting the appropriate response. Use the following
rating scale:
1= Strongly disagree
2= Moderately disagree
3= SHghtLy disagree
4= Neither agree or disagree
5= Slightly agree
6= Moderately agree
7= Strongly agree
Questions 54-71
For me, this is the best o f all possible organizations for which to work
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APPENDIX E
F O L L O W -U P L E T T E R FO R S U R V E Y P A R T IC IP A T IO N
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January 13, 2005
D e a r C olleagues;
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APPENDIX F
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160
Table 13
Q. 10 Fails to i n t e r f e r e until 29 17 22 16 16
problems b eco me seriou s
Q.ll Focuses a t t e n t i o n on 16 26 23 22 14
irregularities, mistakes, exceptions,
and d eviations from standards
Q. 34 Directs my a t t e n t i o n t o w a r d 31 18 22 13 7
failures to meet st andard s
Q. 42 Expresses s atisf a c t i o n w h e n I 10 9 16 27 40
meet expectations
N= 208
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161
Table 14
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162
Table 15
Q. 20 Talks e n t h u s i a s t i c a l l y about 18 26 39
wh at needs to be a c c o m p l i s h e d
Q. 2 6 Treats m e as an individual 13 12 27 40
r a t h e r than a m e m b e r of a group
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163
Q. 38 Helps m e to d e v el op m y strengths 19 12 16 27 25
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164
Table 16
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165
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166
Table 26
Q. 54 I talk up this
o r g ani zation to my friends 3 3 2 12 13 25 41
as a great o r ganiz ation to
work for
Q. 58 I am v e r y proud to tell
others that I am part of this 3 15 26 42
org anization
Q. 60 This organization
r e a l l y inspires the very best 14 15 27 20
in me in the w a y of job
perfor mance
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167
1 2 3 4 5 6 7
Q. 62 I am e x t r e m e l y glad
that I chose this
o rga ni z a t i o n to w o r k for,
over others I was considering 4 2 3 20 10 19 40
at the time I j o i n e d
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168
Table 27
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169
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170
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