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The Role of Leadership Style in Managing Conflict among Salespeople

1.0 Introduction

Since the global environment has been increasing rapidly and become competitive
nowadays, it is very important for the managers to develop an effective leadership style to
drive their employees’ motivation and efficiencies to improve their productivity level.
Suggestively, leadership style can influence the employees’ attitudes and behaviour and this
will indirectly affect their feelings and judgements. A strong leadership demonstrated by
managers is also believed can help the organization towards achieving the goals set up by
the organization itself.

Leadership is identified as one of the most important factors for a successful transformation
according to [CITATION Kot \l 17417 ]. Referring to [ CITATION Jud11 \l 17417 ] an effective and
trustworthy leadership is known as a key that contributes to build organizational capacity
for change. According to [ CITATION Gel03 \l 17417 ] leaders are those people who organize
and align their followers towards a shared common goal by giving them direction and
defining the most appropriate behaviours and attitudes needed for change.

Besides that, organizations exist for different purposes. For example, a community-based
organization exists to empower the community but it is different to a business-oriented
organization where the purpose of it is to generate and maximizing the profits. To achieve
their respective objectives, leadership of these organizations plays an important role.

As we already know, there are a number of leadership styles exist, but the full range
leadership style proposes that the leadership process is a continuum that start from the
non-effective leadership approach which is laissez-faire and moves towards to transactional
and ends at transformational leadership ([ CITATION Xir08 \l 17417 ]. These leadership styles
can improve or lessen the level of employee’s performance.

Leadership and conflict has always been related to one another where both of these
variables influence each other in a significant way. Conflict can be addressed as an
interactive process manifesting incompatibility or disagreement between two or more
individual and it should be managed constructively. Throughout this study, we will discuss
how leadership styles help leaders to manage conflicts among their salespeople.
Purpose and significance of the study

This study is to analyse the leadership styles used by the managers and how do those styles
have influence towards managing conflict among the salespeople.

Research questions

Specifically, this study addresses the following questions:

1. What are the leadership styles?


2. How can leadership styles help to manage conflict among salespeople?

2.0 Literature Review

2.1 Leadership

There is no exact definition of leadership because there has been various research studies
with varied definitions and there is no definition that is universally accepted by many. Most
definitions have a common theme of directing a group towards a goal. Leadership is defined
as the ability to influence and inspire the actions of people to accomplish a vision or set of
goals. According to [ CITATION Kal18 \l 17417 ] leadership is the most critical component in an
organization and also the most important skill for leaders. Leaders have an important role in
the organization such as to foster a culture that will encourage knowledge sharing,
employee retention and at the same time creating loyalty to the organization [ CITATION
Oth14 \l 17417 ]. They also need to communicate with their employees thoroughly, manage

the human capital, finance and also marketing wisely.

Besides that, leadership is a process by which an individual motivates or influences others to


achieve organizational goals. It is the process of enhancing and encouraging employees’ self-
esteem to achieve organizational tasks and goals. Employee motivation is a way to achieve
unusual goals, in which they put effort above and beyond stated organizational goals.
Comprehensively, employee motivation is the extent to which the employees are
emotionally or psychologically bound towards the organization as stated by [ CITATION
Ani14 \l 17417 ]. In order to achieve organizational goals, those well-qualified, capable and

talented employees are likely to be considered as the most effective source as they have the
tendency to efficiently utilize the organizational capital and at the same time increasing the
productivity and profitability. So, to utilize the asset, leadership style is considered as being
the most important determining factor to increase the employee motivation.

According to [ CITATION Che02 \l 17417 ] leadership is a process of social influence in which


one person can carry out the aid support of others in the accomplishment of a common
task, whereas [ CITATION Lok04 \l 17417 ] stated that culture and leadership styles are the
major influences on individuals because leaders are those people who set the tone of the
organization, define its values and norms and create while maintaining a persona of what
the organization is like. For an organization to stay ahead in a challenging environment,
leaders must always be willing to learn and highly responsible on their tasks and
subordinates under them.

Research also has suggested that a great leadership will influence the salespeople to
develop better attitudes towards their jobs, greater commitment, less job stress, more
attachment to the job thus improving their job performances. Leadership also can foresee
the failure or success of an organization [ CITATION Asr16 \l 17417 ]. Today’s organizations
need an effective leader who understands the complexities of the rapidly changing global
environment. If the task is highly structured and the leader has a good relationship with his
employees, there is likely a high chance of effectiveness to occur on the part of the
employees. Different leadership styles may affect an organizational electiveness or
performance. The success or failure of an organization, nations or other social units depends
on the nature of the leadership style [ CITATION Ola13 \l 17417 ].

It is proven that the role of a leader nowadays has changed and the success or failures of an
organization heavily relies on the leadership style practised by the leader himself. As
indicated by [ CITATION Min10 \l 17417 ] a true leader usually engaging himself with his
employees through his consideration of others and modesty. He gets himself involved with
what are his employees doing and not for personal gain purpose. Leadership style in simpler
words mean that it is the way in which the functions of leadership are carried out and the
manner that a manager chooses to behave towards employees [ CITATION Mul00 \l 17417 ].
Any leadership styles approach must be suitable to adapt in organizations, situations, groups
or individuals.

2.2 Transformational leadership


Transformational leadership is the type of leadership that encourages subordinates to
develop their full potential and to go beyond their individual goals for the benefit of
organization. According to [ CITATION Bas06 \l 17417 ] transformational leaders are those who
stimulate and inspire their followers to achieve extraordinary outcomes and develop their
own leadership capacity along the way. Transformational leaders inspire their followers to
exert beyond self-interest in favour of collective group accomplishment [ CITATION Ber04 \l
17417 ]. This is supported by a past research conducted by [ CITATION Bon03 \l 17417 ] where
they found that transformational leaders influence their followers to achieve goals as well as
increasing their confidence, commitment and job performance.

Besides that, [ CITATION Shi03 \l 17417 ] described that transformational leadership has been
closely associated with followers’ creativity at individual level because transformational
leaders inspire them to go beyond their abilities for better service or better way of
completing their job tasks. This kind of leader usually helps to broaden his employees’ goals
and providing them with confidence to perform beyond expectations [ CITATION Dvi02 \l
17417 ]. Transformational leadership can also reduce any conflicts by being sensitive to
employees’ needs. This individualized consideration could encourage the employees to
respect and understand the position and needs of others and at times, overcome any
unyielding positions they might hold [ CITATION Bas06 \l 17417 ].

According to [ CITATION Ayd13 \l 17417 ] transformational leaders every so often promote


intellectual development, confidence, team spirit and enthusiasm among their employees
thus encouraging them to me more focused on their collective wellbeing so that the
organizational goals can be achieved effectively. This type of leadership is preferred by many
due to its innovative as well as productive and supportive nature [ CITATION Bus11 \l 17417 ].
When a leader practices to use transformational leadership in his organization, it would
make his employees a lot easier to share their knowledge among them [ CITATION Beh08 \l
17417 ]. A past research conducted by [ CITATION Chu11 \l 17417 ] stated that

transformational leaders bring changes to the innovation and encourage their employees in
the organization.

2.3 Transactional leadership


Transactional leadership means that the subordinates agree with, accept or comply with the
leader in exchange for praises, rewards and resources in order to avoid any disciplinary
actions [ CITATION Bas06 \l 17417 ]. Rewards and recognition are provided subject to them
successfully carrying out their given job tasks. As mentioned by [ CITATION Lus04 \l 17417 ]
leaders with transactional leadership style often look for how to maintain their stability
rather than promoting changes within their organizations and they usually motivate their
employees by focusing on their personal interests.

Besides that, transactional leaders are likely to use positive and negative reinforcement that
depends on the employees’ behaviour and performance. The leaders then will trade
resources valued by the employees in return for effort and cooperation. Employees with
transactional leaders believe that the given contingent reward depicts the image of a leader
who communicates the objectives to be achieved thus this may help the employees to
adopt the right behaviours as well as properly orientate their efforts. [ CITATION Lyo09 \l
17417 ] both argued that this type of leadership is considered as an autocratic leadership

style when a leader has a lot of power over their followers with regards making them
inputting to management decisions. According to [ CITATION Tim11 \l 17417 ] transactional
leadership is a style where the leader closely monitoring to detect any mistakes and then
put in place corrective actions if there is any mistakes found. This leadership style also
prefers to remain in a specified framework to maximum the employees’ performance
[ CITATION Sha15 \l 17417 ].

2.3 The concept of conflict

According to [ CITATION Wil01 \l 17417 ] conflict is an expressed struggle between at least two
interdependent parties who have incompatible goals, scare resources and interference from
others in order to achieve their goals. Conflict as identified by [ CITATION Ant99 \l 17417 ] is an
interactive process that is manifested in incompatibility, disagreement or differences within
or between social entities. Conflict also can be known as a process which one party remarks
that its interests are being opposed or negatively affected by another party, in other words,
perception influences how we view conflict.

Conflict can occur between individuals, groups, organizations and even in nations. [ CITATION
Pon76 \l 17417 ] indicated that there are three conceptual models of conflict, first is the
bargaining model where the interest groups are in competition for scarce resources, second
is the systems model which defines conflict among parties in a functional relationship and
third is the bureaucratic model which describes the type of conflict experienced among
superior and subordinates along in the organizational hierarchy.

Besides that, conflict can take place in different levels ranging from individuals to teams
even to organizations. At team level, conflict can occur either in intra-team of inter-team
[ CITATION Kor08 \l 17417 ].

3.0 Theoretical Findings

In this part, we will be answering to both research questions mentioned earlier which are
what are the leadership styles and how can leadership styles help to manage conflict among
salespeople. Based on the literature review, it can be concluded that for this study, only two
leadership styles are chosen and that include transformational leadership and transactional
leadership.

Transformation leadership can be defined as a situation when followers engage with each
other and both leader and followers raise each other level of motivation thus creating a
transforming effect on both parties [ CITATION Ven12 \l 17417 ]. Leaders who possess this
type of leadership style are often focus to improve their employees’ development, process
oriented, develop commitment based on trust and expectation thus motivating employees
to perform beyond their expectations [ CITATION Hat88 \l 17417 ]. Transformational leaders
normally have an unexpected effect towards their followers and they have four types of
dimensions, idealized influence, inspirational motivation, intellectual simulation and
individual consideration.

In contrast to transformational leadership is transactional leadership. A transactional leader


motivates his followers by pleasing to their self-interest. This type of leadership often relying
on rewards and punishment for the completion of certain job tasks. A transactional leader
may result in compliance from his employees but unlikely to generate commitment to task
objectives [ CITATION Nam11 \l 17417 ] . In addition, the transactional leader and his
employees are more towards negotiations process that are temporary and it hinders the
employees’ innovative and creative skills [ CITATION Dai13 \l 17417 ].
Conflicts may arise between people or groups in all kinds of situations. Conflicts can be
viewed as a necessity to help build meaningful relationships between people or groups and
how they are handled will decide whether it is productive or otherwise. There is a potential
for conflicts to create a positive opportunities towards a goal but at the same conflicts can
destroy relationships due to negative outcomes. One aspect among leadership qualities is
the ability to handle any sorts of conflicts. Leaders must work on the conflict management
skill to help nurture a productive working environment for their employees. The inability to
do so will not only lead to negative outcomes but it may also demoralise the credibility of
the leader.

Besides that, today’s business world has created many new challenges in relation to
maintain peace in working environment. Such challenges may include the rapid pace of
business, increased number of competitions and flattened organizational structures
[ CITATION Mui00 \l 17417 ] . It is very important for leaders to make changes to their
organizations to remain competitive in the business world but doing so comes with a price,
which is such a change can also bring conflicts within organizations. Thus, leaders need to
know methods how to manage conflicts effectively. According to [ CITATION Way16 \l 17417 ]
the advantages of handling conflicts efficiently can influence employees’ satisfaction with
supervision and work, job performance, turnover retention and reduce anxiety or
depression among employees.

Salespeople need to focus on delivering service quality and effectiveness to meet the
increased number of customers’ demands, therefore for them to remain competitive, they
need to provide the excellent service while completing their sales quotas [ CITATION Agn12 \l
17417 ]. According to [ CITATION Ban16 \l 17417 ] customer demandingness often affects a
salesperson’s behaviours and performance. Even though customer demandingness can
increase the salesperson’s effort, creativity and salesperson’s improvisation to respond to
the unexpected situations but it also has the downside of it. The increased number in
customer demandingness utilizes salesperson resources and this can lead to higher level of
stress for the salesperson due to customer pressure [ CITATION Jar13 \l 17417 ]. As a result,
the salesperson will experience a role conflict while completing his tasks. A role conflict
occurs when there are incompatible demands and expectations placed upon a salesperson
relating to his job or position.
Conflict occurs when demands from managers and customers are conflicting with one
another. According to [ CITATION Jar13 \l 17417 ] managers want the salesperson to increase
the sales margin meanwhile customers demand for a better service. This will force the
salesperson to either allocating more of his time to either cross/up selling to satisfy the
managers or to offer better service to satisfy customers. Since both of these goals are
conflicted, salesperson is forced to prioritize which goal is more important. Incompatible
goals and lack of resources lead to higher level of role conflict.

Besides that, there are also another types of conflict within salespeople themselves which
are task conflict and relationship conflict. Task conflict is the team’s awareness of
differences and disagreements in ideas and opinions regarding a team task meanwhile
relationship conflict is the team’s awareness of interpersonal incompatibilities among team
members which include irritation, frustration, annoyance and tension. When there is an
occurrence of task and relationship conflict, team members would likely to engage in less
information distribution and have more difficulty to have a shared understanding and
eventually hurt the sales team performance. It is very important for leaders to understand
how to manage conflict among salespeople effectively and properly using their leadership
styles.

First, we go to how transformational leaders use this kind of leadership style to manage
conflict among his salespeople. A transformational leader can reduce conflict by fostering a
shared purpose that binds his salespeople together and then transcend their self-interests
for the good of the team [ CITATION Lim04 \l 17417 ] . A transformation leader helps his
salespeople to overcome conflict that occurred by developing group values and norms
which support cooperative conflict management.

According to [ CITATION Res08 \l 17417 ] transformational leadership is characterized by


essentially team-supporting behaviours, enhances individual members’ psychological
attachment to the team therefore develops collective identity and group values that
everyone is likely to incorporate into their own self-concepts. This provides the team
members with team-oriented motivation and motivate them to be more cooperative
towards the team goals. Even though the salespeople are inspired by the leader’s effort for
them to go beyond the mere reciprocating process but their identification among
themselves enables them to put front the shared goals.
Besides that, a transformational leader also nurtures cooperative goals which contribute to
the team’s belief that conflict is a mutual problem that needs a common consideration and
solution so that each and every one can move towards their goals [ CITATION Tjo08 \l 17417 ].
Driven by such group value, everyone is willing to discuss issues in conflict open-mindedly
with a purpose of seeking a reasonable solution that benefits everyone. So whenever there
are any disagreements or differences among the salespeople in terms of job tasks, the
transformational leader will encourage them to sort out the task conflict or relationship
conflict by themselves openly so that any possible solutions could be addressed. A
transformational leader help his followers to come together and break through any conflicts
and barriers.

Second, in contrast to transformational leadership is transactional leadership. A


transactional leader controls and organizes his followers in times of conflict by focusing on
maintaining his authority as the head of the organization and use the same authority to
resolve any conflicts. We already know that a transactional leader provides rewards and
punishments to keep his followers on the right path to achieve the shared goals. If the goal
is to maximize the sales profit then all the salespeople are expected to perform their utmost
efforts in achieve the said goal within the time frame given by the leader. Those salespeople
who are fail to commit to do so must suffer punishments such as not being considered for
raises or promotions. To those salespeople who adhere will be given raises or bonuses.

There are quite a few methods used by a transactional leader when addressing conflict
among his salespeople. By using a collaborative approach for example, the leader mostly
focuses on completing the job tasks as well as including his followers as well in the process
of gathering facts, debating the issues, investigating alternatives and then identify solution
to the conflict risen. A good leader will solve conflict among his employees no matter how
hard it can be. It is very important for the leader to address the conflict quickly before it gets
worse because the effect of conflict can result in a disruption of the effectiveness of
salespeople thus slowing down their performance.

In case where the salesperson is more aggressive or disobedient to his leader, it is best to
address conflict straightaway. A transactional leader in nature should be firm and
authoritative to his followers. Any salespeople who disobedient must be told that in no
uncertain terms, that his behaviour is unacceptable and it could lead to dismissal if it still
continues. When there is a conflict in this kind of situation, the leader may choose to
combine the threat with positive reinforcement if improvement is shown.

Besides that, the transactional leader might find himself facing a group of dissatisfied
salespeople. There could be few reasons of why this is happened. It could be about the
recently announced of unpopular change in policy or general dissatisfaction with the
working conditions. For the leader to reduce conflicts arisen due to these circumstances, the
leader may attempt to raise their morale by introducing a system of rewards and also
recognition for excellence.

4.0 Conclusion

We have been always aware of how conflict can bring an adverse effect to the
organization’s dynamics and performance [ CITATION Jeh03 \l 17417 ] . Even though conflict at
times can be positively utilized, when it is not handled properly it could get so much worse
to the organization. The adverse costs of poorly managed conflict are poor performance,
lack of cooperation among employees, wasted resources and productivity [ CITATION Jeh03 \l
17417 ]. Thus, it is very important for the leaders in organizations to handle any sorts of
conflict in a proper way so that it can bring benefit to the organization instead.

On the other hand, leadership is regarded as a contributing factor in many areas of


organizations in terms of management and development. But, lack of leadership also can
contribute to the occurrence of conflict. This indicates that both leadership and conflict are
connected to one another. Hence, to deal with conflict, leaders must understand what are
their roles and skills that need to be applied effectively.

Leadership also can either make or break an organization. Therefore, it is very important for
leaders to take into consideration of their leadership and start implementing it on the factor
of conflict in an extensive manner. If it is done properly, any conflicts risen can be
terminated. Besides that, conflict management is the process of reducing negative
outcomes while increasing positive outcomes. There are many reasons why conflict occurs,
it could either be in terms of economic, value or power. How conflict is managed will
determine how well the organization would be in the end. Thus, leaders need to have an
effective conflict management skill to enable them providing direction and guidance
towards a resolution. An effective leader needs to able respond to a situation with an action
that is suitable for that certain situation.

If conflict is not handled properly, it not only can affect the moral of the organization or
team but it also can create a larger issues and once it happens, it would be a lot difficult to
resolve. To avoid from it happens, leaders need to address the conflict immediately and pull
on their leadership skills.

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