Professional Documents
Culture Documents
Saba Izhar
Roll # 01-321191-030
Date: 23-January-2020
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Contents
CHAPTER ONE........................................................................................................................................4
Introduction...........................................................................................................................................4
Research Gap Analysis.......................................................................................................................5
Problem statement............................................................................................................................5
Objectives..........................................................................................................................................6
Theoretical framework......................................................................................................................6
HYPOTHESIS.......................................................................................................................................7
CHAPTER TWO.......................................................................................................................................7
Literature Review..................................................................................................................................7
Ethical Leadership..............................................................................................................................7
Mediators..........................................................................................................................................7
Follower’s Psychological and Ethical Factors.................................................................................8
Job Related Attitudes.....................................................................................................................8
Ethics related organizational culture.............................................................................................8
Workplace Conditions....................................................................................................................8
Moral Voice.......................................................................................................................................8
Job Performance................................................................................................................................9
Moderators........................................................................................................................................9
Followers Characteristics.............................................................................................................10
Leaders Characteristics................................................................................................................10
Leader Follower Relationship......................................................................................................10
Organizational Characteristics....................................................................................................10
Environmental Situations.............................................................................................................10
CHAPTER THREE..................................................................................................................................11
Research Methodology........................................................................................................................11
Research paradigm..........................................................................................................................11
Research Design..............................................................................................................................11
Research approach..........................................................................................................................11
Research strategy............................................................................................................................11
Procedure........................................................................................................................................11
Sampling Technique........................................................................................................................12
Population.......................................................................................................................................12
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Sample.............................................................................................................................................12
Measurement of variable............................................................................................................12
Data Analysis:..................................................................................................................................14
Chapter four........................................................................................................................................14
Findings and Data Analysis;.............................................................................................................14
Reliability Analysis:......................................................................................................................14
Descriptive Analysis:....................................................................................................................15
Skewness.....................................................................................................................................16
Kurtosis........................................................................................................................................16
Correlation Analysis.....................................................................................................................16
Regression Analysis......................................................................................................................17
Conclusion:..........................................................................................................................................18
References...........................................................................................................................................18
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CHAPTER ONE
Introduction
Employees are important for every organization. They are important for organizational
achievements. They are considered to be for achieving competitive advantage. In an
organization, an effective leader is able to encourage his or her followers to reach the goals of
the organization and effective leader enhances the inspiration of its employees which in turn
will improve employee’s performance. It clearly defines the relationship between managers
and leaders and also clearly defines the relationship between ethical leadership and
employee’s performance.
Managers have the unidirectional authority they are reactive or prefer to work with people on
problem-solving. They create direction demand and reliability (consistency). Leaders have
multidirectional inspiration, leaders produce change and motivate their employees, they
actively, emotionally evolved or they think broader in a way, the change the way of people
thinking about what is possible.
Leaders engage in decisions that have resulted in a lack of trust, believe in organization
leadership and lack of commitments to organizations goals. The research tries to determine
the idea or a concept of ethical leadership, the traits of ethical leaders, ethical leadership and
its impact on employees process overall performance and the way organizations develop
leaders that are not most effective sound in character, however, sound in action. Business
leaders are expected to be individuals of ‘strong characters’ and function positions to their
personnel; which without the employee's goals may be undermined. So, two important
variables of trust and commitment to the betterment of ethical leadership and employees job
performance.
We want to analyze the influence of ethical leadership on the relationship between leaders
and followers, as well as its consequences for individual performance, Commitment to work
goals, and organizational citizenship. Although ethics in leadership is supposed to promote
positive consequences in the work context, its association with performance and other
relevant aspects in the business environment – such as the commitment to goals –has not yet
been empirically studied. The present research contributes by filling this gap, therefore
expanding the knowledge about the implications of ethical leadership impact on employee
performance.
Problem statement
In the current business environment characterized by a company's faster communication syste
m managers can't afford to engage in unethical practices because of its detrimental effect it
can have on a company but also negative advertising that will have ad consequent effect on
values.A critical issue in many organizations is the practice of top management ethical leader
ship not on its impact on the value of the firm but also on its employees because unethical
leadership could have a negative impact on the satisfaction and performance of the employee
work.Employee performance includes the ability of employees to perform defined duties,
meet deadlines and work efficiency and effectiveness.A strong ethical practice that stimulates
employee performance is needed by the different organizations. This issue has continuously
affected the performance of employees.
That's why the study suggests the best ethical practice to stimulate employee performance.
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Objectives
Theoretical framework
Moderator
Follower characteristics
Leader characteristics
Leader-follower
relationship
Environmental
situations
Organizational
characteristics
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HYPOTHESIS
CHAPTER TWO
Literature Review
Ethical Leadership
Ethical leadership can be used to motivate employees in order to improve their performance.
From a worker inspiration, long-haul benefits as high profitability will be determined. A
propelled worker is a profitable resource which conveys enormous esteem to the association
in keeping up and fortifying its business and income development. These values of ethical
leadership include trust, integrity, transparency and moral values.[ CITATION Cha17 \l 2057 ]
Mediators
A large number of studies have identified different mechanisms through which ethical
leadership affects the behavior and performance of followers. While the literature highlights a
number of complexities in mediating mechanisms, the categories of mechanisms by which
ethical leadership works can be distinguished[ CITATION Cha17 \l 2057 ].
Individual psychological factors play a critical role as mechanism that influence the outcomes
of followers through ethical leadership. Ethical leaders serve as role models for desirables
workplace behavior. They are also concerned with their follower’s well-being and job
development[ CITATION Cha17 \l 2057 ]. Consequently, ethical leadership followers are
motivated to build positive psychological resources and expand their knowledge and skills to
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improve their job performance[ CITATION Cha17 \l 2057 ]. Furthermore, ethical leadership
set clear ethical standards through communication and discipline, encouraging followers to
have ethical attitudes and psychological states and to engage further in ethical behavior and
decision making[ CITATION Cha17 \l 2057 ].
Job related means work related attitudes. Basically, work related attitudes of followers are
often investigated as results of ethical leadership, but these attitudes also function as
mechanism by which ethical leadership influences another outcome[ CITATION Cha17 \l
2057 ].
Workplace Conditions
Ethical leaders not only create an organizational ethical climate or culture, but also provide
other ways of creating a desirable work environment that further enhances the job
performance of followers[ CITATION Cha17 \l 2057 ].
Moral Voice
Moral voice can be characterized as generally steady, motivational develops that guide
individuals' recognition, demeanors, and practices towards accomplishing particular higher
request objectives. Moral qualities are additionally characterized as those things that are
essential to or esteemed by a man. That somebody can be an individual or, all things
considered, an association[ CITATION Cha17 \l 2057 ]. Moral values in moral authority
include the dedication to making the right decision as indicated by societal and culture
convictions and qualities.
Associations with a solid code of morals and submitted workers are probably going to exhibit
sound good values. This is imperative in lessening the frequency of misrepresentation;
defilement and other dishonest conduct that could some way or another undermine the
models and notoriety of the association and eventually prompt to the fall of the business.
Moral qualities are gained in individual and show themselves as lasting discernments that
shape and affect the way of our practices[ CITATION Cha17 \l 2057 ]. Moral qualities
rehearse require information, thought and at last decision of reaction. Therefore, moral values
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are important to understanding and practiced in the organization to increase employee
performance[ CITATION Cha17 \l 2057 ].
Job Performance
Regarding the job performance, there are various perspectives presented. The rate of the
accomplishment and output obtained via recruiting an individual to conduct a task or duty is
referred to as performance. This topic finds meaning when we begin to understand that the
success or the failure of an organization depends on the employees. Performance has been
defined differently in various contexts and each of the experts and specialists of the field has
dealt with a specific aspect of performance. Job performance is a system of behaviors related
to the organizational objectives or organizational departments’ goals for which everyone has
been assigned with a task to be fulfilled.
For every fundamental organizational and industrial psychology functions the focus has
always been directed towards the improvement of the work performance which is based on
tow expanded class of staff behaviors: duty-oriented performance and implied performance.
Job performance has been distinguished between task performance and contextual
performance. The part of the performance which is defined informal job description sections
is called the task performance[ CITATION Cha17 \l 2057 ].
Task performance has been defined as a skill by which the individuals recruited to a job
perform activities in a formal manner as part of a specified job and it is regarded as the main
kernel of every organization. On the contrary, the contextual performance should be defined
as the individual efforts which are not in direct relationship with the individuals’ occupational
tasks and duties but they are important since they shape the psychological, social context of
an organization[ CITATION Cha17 \l 2057 ].
Moderators
This section provides an overview on moderating variables in the ethical leadership follower
performance relationship. In ethical leadership studies, there is a clear trend towards
contingency-oriented approaches. Researchers aim to sharpen their understanding of their
effectiveness of ethical leadership by incorporating contingency variables into research
models. Finding out what contextual factors help or hinder this process is a key concern for
leaders who are trying to implement ethical leadership. This section is using some categories
to summarize results for the following moderators[ CITATION Cha17 \l 2057 ].
Followers Characteristics
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ethical leadership produces an impact on the behavior and performance of followers. Personal
differences among followers influence the effect of ethical leadership on their behaviors and
performance, an understanding of the personalities of their followers by a leader may be
helpful in enhancing ethical leadership effectiveness[ CITATION Cha17 \l 2057 ].
Leaders Characteristics
When followers assess their leader, the characteristics of the leader influence their perception
of ethical leadership. This will quickly become transparent to employees if leaders do not
pursue ethical values, decreasing their confidence in the leader. If leaders only pretend to care
about ethical values but show unethical behaviors in practice, they will be perceived by
followers as hypocritical leaders. Furthermore, ethical leaders should demonstrate
performance ability to gain trust and trust in their leadership practices from
followers[ CITATION Cha17 \l 2057 ].
Another factor closely related to the impact of ethical leadership is the relationship between
leader and follower. If the quality of the relationship with a given leader is high, followers
perceive an emotional bond and shared values with their leaders and integrate the values and
beliefs of the leader further into their own identities. Therefore, ethical leaders need to
actively build and develop their relationships with followers in order to promote their
leadership effectiveness[ CITATION Cha17 \l 2057 ].
Organizational Characteristics
Organizational climate and policy interact with ethical leadership to influence the conduct
and performance of ethical followers as well as firm performance[ CITATION Cha17 \l 2057
]. When organizational systems assess members based on ethical criteria and organizational
culture encourages followers to make ethical decisions consistent with ethical leadership,
followers are more likely to receive consistent messages across the organization, thus
increasing their ethical leaders influence[ CITATION Cha17 \l 2057 ].
Environmental Situations
Situations within the organization that followers have to handle can be both dynamic and
uncertain[ CITATION Cha17 \l 2057 ]. Ethical leaders are more attracted to followers in
situations of high uncertainty, however, because ethical leaders provide behavioral guidance
and show the follower concern and support[ CITATION Cha17 \l 2057 ].
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CHAPTER THREE
Research Methodology
Research paradigm
In spite of decades of discussions and research on ethical leadership the papers are largely
anecdotal and remain highly normative. Until very recently, little has been done to
systematically develop an ethical leadership construct necessary for a testing theory about its
origins and outcomes.
The purpose of this research is to shed light on the construct of ethical leadership by
reviewing the relevant literature. The aims of this research include providing definitions for
the construct of ethical leadership and describing an ethical leader’s impact on employee
performance.
Research Design
Research approach
The research approach that we are using is the deductive approach. Deductive means
reasoning from the particular to the general. The deductive approach involves the formulation
of hypotheses and their subjection to testing during the research process.
Research strategy
We will be conducting a "survey research" in the form of questionnaires at the work setting.
We will collect data from the results of the questionnaires.
Procedure
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Define the population
Develop the instrumentation plan
Collect data
Analyze the data
Sampling Technique
The sampling technique that we are using is a simple random sampling. A simple random
sample is meant to be an unbiased representation of a group. The population is all employees,
and the sample is random because each employee has an equal chance of being chosen.
Population
Our population consists of the workplace (organization) whereas our defined target
population is the work setting in Islamabad.
Sample
Size;
The calculated sample size was 14. The study population taken from two private banks of
Islamabad.
Measurement of variable
The study was conducted to find out the ethical leadership between leaders and his followers.
The questionnaire scale is Likert scale. The age demographic is ordinal scale, years of service
are ordinal, Marital status and Name of bank demographics are nominal.
Total items are 25.
Mediator SA A N DA SDA
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a) Holds me accountable for problems over which I have no control.
b) Clarifies priorities.
c) Takes time to talk about work related emotions.
d) Clarifies who is responsible for what.
e) Explains what is expected of me and my colleagues.
Moderator
a) The firm’s management is always on the lookout for new
opportunities for the organization.
b) My supervisor’s successes are my successes.
c) Since starting this job, my personal values and those of my
supervisor have become more similar.
d) The reason I prefer my supervisor to others is become of what he
or she stands for, that is, his or her values.
e) If the values of my supervisor were different, I wouldn’t be as
attached to my supervisor.
Moral voice
a) In my branch, I can express my true feelings regarding my job.
b) Raise suggestions to improve the bank’s working procedure.
c) Make constructive suggestions to improve the banking operation.
d) In my branch, I can freely express my thoughts.
e) In my branch, expressing your true feelings is welcomed.
e) The firm’s members have acquired some critical capacities and skills
that improved your performance?
Data Analysis:
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Chapter four
Total 14 100.0
a. Listwise deletion based on all variables in the
procedure.
Reliability Statistics
Cronbach's
Alpha N of Items
.523 5
Reliability Statistics
Cronbach's
Alpha
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of Items
.601 5
Reliability Statistics
Cronbach's
Alpha N of Items
.625 5
Descriptive Analysis:
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation Skewness Kurtosis
Statistic Statistic Statistic Statistic Statistic Statistic Std. Error Statistic Std. Error
Av. EL 14 1.8000 3.6000 2.414286 .4865216 1.026 .597 1.540 1.154
Av. ME 14 2.2000 3.6000 2.557143 .3857346 2.004 .597 3.845 1.154
Av.MO 14 1.6000 3.4000 2.400000 .4574175 .360 .597 .757 1.154
Av.MV 14 1.0000 2.6000 2.200000 .4574175 -1.665 .597 2.636 1.154
Av.JP 14 1.8000 3.8000 2.600000 .4771712 .991 .597 2.285 1.154
Valid N (listwise) 14
Descriptive Analysis tells about the summarized the data set. The above analysis basically
showing the minimum, maximum, mean, standard deviation, skewness, kurtosis, for all the
variables including Ethical Leadership, Moral Voice, Job Performance, Mediator and
Moderator.
Skewness
Skewness value for variables such as Ethical Leadership 1.026, Mediator 2.004, Moderator .
360 and Job performance .991 are positive. These positive value shows us that the diagram
right tail is much longer and distribution mass is concentrated towards left side of the figure.
The variable Moral Voice -1.665 is negative this shows that the figure is left skewed and left
tail in other words the diagram is much longer which is left side and distribution mass
concentrated towards the right side.
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Kurtosis
The statistic value of all the variables are in positive which means that the distribution is
having sharper peaks and heavier tails as compared to the normal distribution.
Correlation Analysis
Correlations
Av. EL Av. ME Av.MO Av.MV Av.JP
Av. EL Pearson Correlation 1 .102 .221 .124 .119
Sig. (2-tailed) .729 .447 .672 .685
N 14 14 14 14 14
Av. ME Pearson Correlation .102 1 .471 .209 -.033
Sig. (2-tailed) .729 .089 .473 .910
N 14 14 14 14 14
Av.MO Pearson Correlation .221 .471 1 .000 .296
Sig. (2-tailed) .447 .089 1.000 .304
N 14 14 14 14 14
Av.MV Pearson Correlation .124 .209 .000 1 -.324
Sig. (2-tailed) .672 .473 1.000 .258
N 14 14 14 14 14
Av.JP Pearson Correlation .119 -.033 .296 -.324 1
Sig. (2-tailed) .685 .910 .304 .258
N 14 14 14 14 14
In the correlation analysis, the relationship between two variables Ethical leadership and
mediator factor .102 which shows the correlation is significant at 0.05 level. There are many
variables their value are negative Job performance and Moral voice -.324.
Regression Analysis
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Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate
In the table the r is .014 which
1 .119a .014 -.068 .4931094
means that some percent
of total a. Predictors: (Constant), Av. EL variance is
explained and some are
remaining. However
standard error is .493 which means that this error is slightly medium in a level. This standard
error basically shows the deviation.
ANOVAb
Model Sum of Squares df Mean Square F Sig.
1 Regression .042 1 .042 .173 .685a
Residual 2.918 12 .243
Total 2.960 13
a. Predictors: (Constant), Av. EL
b. Dependent Variable: Av.JP
Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 2.318 .691 3.352 .006
Av. EL .117 .281 .119 .416 .685
a. Dependent Variable: Av.JP
Now in
the coefficient table we just look at the t test dependent variable is less than +-1.96. so, the
value is acceptable.
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Conclusion:
This paper conducted a thorough review of empirical findings in the literature on ethical lead
ership and provided an integrated framework for the development and influence of ethical lea
dership.
Although a great deal of attention has recently been paid to ethical leadership, the existing eth
ical leadership literature remains diverse and fragmented, which can be seen as a
symptom of the complex nature of ethical leadership.
Analytical framework which helps us to synthesize fragmented knowledge from a wide range
of literature.
We have also suggested several topics for future research that will help broaden our understa
nding of the development of ethical leadership and influence processes, and enable organizati
ons to develop ethical leadership and improve their efficacy.
References
1996, (., & Van Zyl & Lazeny, 2. c. (Vol. 3 No. 11; June 2012). Impact of Ethical Leadership on
Employee Job Performance. International Journal of Business and Social Science, 1-9.
Bello, S. M. (Vol. 3 No. 11; June 2012). Impact of Ethical Leadership on Employee Job Performance.
International Journal of Business and Social Science, 1-9.
Changsuk Ko, J. M. (2017). Ethical Leadership: an Integrative Review and Future Research Agenda,
Ethics & Behavior. http://www.tandfonline.com/loi/hebh20, 1-50.
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Obicci, P. A. (2015). Effects of ethical leadership on employee performance in Uganda. Net
Journal of Business Management, 3(1): 1-12.
http://www.netjournals.org/pdf/NJBM/2015/1/14-024.pdf
The Impact of Ethical Leadership on Employees’ In‐Role Performance: The Mediating Effect
of Employees’ Psychological Ownership
https://onlinelibrary.wiley.com/doi/full/10.1002/hrdq.21217
Adeyeye, J.O, Adeniji, A. A., Osinbanjo, A.O., Oludayo, O.A Business Management
Department, Covenant University, Ota, Ogun-State, Nigeria
http://eprints.covenantuniversity.edu.ng/5317/1/Paper%2037.pdf
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