Professional Documents
Culture Documents
Servant Leadership
John Politis
Neapolis University Pafos, Pafos, Cyprus
jdpolitis@gmail.com
Abstract: This study examines the effects of authentic and servant leadership on team performance using a sample
obtained from the United Arab Emirates (UAE). Structural equation modelling determined whether the influence of servant
leadership on team performance is greater compared to that of authentic leadership. The findings from 181 respondents
indicate that servant leadership had a significant greater effect on team performance compared to authentic leadership.
Furthermore, authentic leadership affected team performance and the influence of consideration leadership on team
performance was found to be comparable to that of authentic leadership. Results also showed that authentic and servant
leadership accounted for 59% of the variance in team performance, suggesting organisations should train and/or hire those
leaders who are vested with ethical leadership behaviours (authentic and servant leadership) if they wish to maintain
and/or increase team performance. Direction for future research and practical implications for leadership and business
approaches are discussed.
Keywords: authentic leadership, consideration, initiating structure, performance, servant leadership
1. Introduction
It is well known that certain leadership styles are better predictors of desirable organisational outcomes (e.g.
creativity, commitment, job satisfaction, motivation, performance, etc.) compared to other leadership styles.
Years of research concluded that consideration leadership is strongly related with subordinate satisfaction
compared to initiating structure (Judge, Piccolo & Illies, 2004). Similar results have been found between
relations‐oriented leader behaviour and performance, compared to task‐oriented leader behaviour and
performance (Yukl, 2010; Likert, 1967). Moreover, it is argued in the literature that 50 years of research on
participative leadership left us with inconsistent conclusions because “participative leadership sometimes
results in highest satisfaction, effort and performance, and at other times it does not” (Yukl, 2010, p.139). As
far as the effectiveness of transformation and transactional leadership it is widely supported that
transformational leadership increases performance and employee motivation more than transactional
leadership (Bass, 1985, Dumdum, Lowe & Avolio, 2002).
Despite the positive features of the earlier leadership styles, there is a declining public trust in leaders, which
has been fuelled by repeated scandals in the banking industry, leading to the massive bailouts of AIG and the
Royal Bank of Scotland, and the collapse of the Lehman brothers and Laiki Bank of Cyprus in 2013. As a result
research questions have been raised in the literature asking (i) what is the influence of ethical leadership on
followers’ satisfaction, commitment and behaviour (Brown & Trevino, 2006), and (ii) what are the ways that
leaders influence ethical awareness, dialogue and consensus (Kahn, 1990). These research questions however
emphasize the importance of leader influence on followers and the ethical climate of an organisation (Yukl,
2010), but they do not address organisational performance. Hence, more attention is needed to understand
the performance‐ethical leadership relationship. This paper (i) addresses the relationship between ethical
leadership and performance, and (ii) compares the relationship between performance and the more
established leadership styles with those found with ethical leadership. In particular, the paper examines the
relationship between two ethical leadership constructs (authentic and servant leadership), the traditional
leadership styles of initiating structure and consideration and self‐rating team performance.
2. Conceptual model and hypotheses
The theory of authentic leadership has been emerging during the last decade from the intersection of
leadership, ethical and positive organizational behaviours and scholarship literatures (Luthans & Avolio 2009;
Avolio et al 2004; Gardner et al 2005; Shamir & Eliam 2005). The literature universally agrees on the
conception of authenticity and core values of the authentic leader (Pontiggia & Politis 2012). According to Yukl
(2010) “the core values for authentic leaders motivate them to do what is right and fair for followers, and to
create a special type of relationship with them that includes high mutual trust, transparency (open and honest
communication), guidance toward worthy shared objectives, and emphasis on follower welfare and
development” (p.345). At this point, it is necessary to understand the influence of authentic leadership on
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employee performance. It is argued that as long as organisational leaders act upon their true values, believes
and strengths, while enhancing employees to do the same, higher level of employees’ well‐being will
accumulate, which in turn will have a positive impact on performance (Walumbwa et al. 2008; Ryan & Deci
2001). It is thus plausible to assume that authentic leadership will have a positive influence on team
performance. This assumption is expressed by the following hypothesis.
Hypothesis 1 (H1): Authentic leadership is positively and significantly related to team
performance.
Although authentic leadership theory is at the embryonic stages of conceptual development and
operationalisation, Walumbwa and colleagues (2008) developed and validated scales measuring four
theoretical leadership components namely: leader self‐awareness; relational transparency; internalised moral
perspective and balanced processing. Hence, Walumbwa et al. (2008) instrument was employed in the current
study to operationalise the constructs of authentic leadership.
Servant‐leadership is another emerging approach to leadership whereby the leaders act as servants; putting
the needs of employees and customers as their first priority (Greenleaf 1970; 1997). The philosophy of
servant‐leadership is serving others, including humanitarian and altruistic values. It is argued that a servant‐
leader empowers and trusts followers, is concerned for subordinates needs, and keeps actions consistent with
values (Yukl 2010), thus, the welfare of followers is the top priority for servant leaders. However, if
organisations take radical measures in order to remain profitable (e.g. cutting in benefits, downsizing and
outsourcing) the servant leaders’ actions would be in conflict with their philosophy. Consequently, servant
leadership may not be appropriate about the likely outcomes with regard to performance, in particular if
organisations compete purely on performance. Thus, it is perceived that servant leadership could be more
appropriate for non‐profit and voluntary organisations (Yukl 2010). To the contrary it could be also argued that
if an organisation does not experience drastic restructuring and has enjoyed sustainable profitability for many
years (as it is the case with the organisation examined in this study), the servant leader could look after the
welfare of employees, which in turn will have a positive influence on team performance. This assumption is
expressed in Hypothesis 2.
Hypothesis 2 (H2): Servant leadership is positively and significantly related to team performance.
As far as the operationalisation of servant leadership there are a number of themes that have emerged over
the years (Patterson 2003) with the most comprehensive framework revolving around the leadership domains
of personality (i.e. integrity, humility and servant‐hood), relationship (i.e. caring for others, empowering others
and developing others), task (i.e. visioning, goal setting and leading) and process (i.e. modelling, team building
and shared decision‐making) (Page & Wong 2000 p.89). The psychometric properties of these domains have
been confirmed by Dennis and Winston (2003), hence, Page and Wong’s (2000) instrument was employed in
the current study to operationalize the descriptors of servant leadership.
In relation to initiating structure and consideration leadership, research indicates strong and consistent link
between consideration leadership and job satisfaction, commitment and organisational performance (Yukl
2010; Bass & Bass 2008). A review of the literature revealed that leaders high in initiating structure and
consideration tended to achieve high subordinate performance and satisfaction more frequently than those
rated low on either consideration, initiating structure, or both (Bass, 1990). It is thus expected significant
correlations will be found between team performance and the factors of initiating structure and consideration
leadership.
Hypothesis 3 (H3): Correlations of team performance with the consideration leadership factor
will be stronger, and more positive, than those with the initiating structure leadership factor.
3. Subjects and procedure
3.1 Sample
Employees from a medium sized service organisation operating in the United Arab Emirates (UAE) participated
in the study. This organisation is one of several UAE organisations which took part in a broader research study
undertaken in October 2012. The study involves a questionnaire‐based survey written in English measuring
employees’ team performance and the variables of authentic, servant, consideration and initiating structure
leadership.
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A total of 181 usable questionnaires were obtained from full time employees, who volunteered to participate
in the study (71.3% response rate). Their anonymity and confidentiality were guaranteed. Twelve incomplete
questionnaires were excluded from the final sample. The final sample consisted of 14.9% females and 85.1%
males. The participants were relatively young as 65.7% were under the age of 30 with only 3.3% being over the
age of 50; 75.1% held their current position in the organisation for less than 5 years, whilst 91.2% have known
their immediate leaders for less than 5 years. It is implied in this result that 16.1% of the respondents knew
their immediate leader in another organisation, which is typical in the UAE. Only 16% held the current position
for 5 years, implying that there is either a high turnover or the organization is relatively young which usually
the case with UAE organisations. As for the participants level of educational, 13.8% had some high school
education, but did not graduate, and everyone else has received a diploma or higher qualification in the
English language.
3.2 Analytical procedure
Confirmatory factor analyses (CFAs) were performed using the Analysis of Moment Structures (AMOS)
software package for the measurement models and the structural model. Using CFAs we assessed the validity
and factorial composition of the measurement models of the variables examined in the paper. A mixture of fit‐
indices was employed to assess the overall fit of the measurement models. These included the chi‐square to
degrees of freedom (χ2/df); the goodness‐of‐fit (GFI); the adjusted goodness‐of‐fit (AGFI); the comparative fit
index (CFI); the Tucker and Lewis index (TLI); the root mean square residual (RMR) and root mean square error
approximation (RMSEA). As per Jorskog and Sorbon (1993) suggestions, the model fits the data well when the
values of GFI, AGFI, CFI and TLI are greater than 0.90, and χ2/df is less than 3.0; RMR is less than 0.05; RMSEA
is up to 0.08, values greater than 0.10 are taken to be evidence of a poorly fitting model (Browne & Cudeck
1993). If the CFAs of the measurement models indicate that the values of the fit‐indices are equal to, or
greater than, the recommended values (i.e. demonstrate adequate validity and reliability), we then accepted
the models as the best fitting models. Moreover, the measurement and structural models were tested for
convergent validity by computing the average variance extracted (AVE). Constructs with AVE > 0.5
demonstrate adequate convergent validity (Fornell and Larker (1981).
4. Measurement models
4.1 Independent variables
Authentic leadership was assessed using Walumbwa et al'. (2008) 16 items; these items are measuring leader
self‐awareness, relational transparency, internalised moral perspective and balanced processing. Responses to
the 12 items were made on a 5–point Likert response scale with response options from “not at all” to
“frequently, if not always”. The results of the CFA supported the independence of the 4 factors: leader self‐
awareness (2 items, α = 0.78), relational transparency (6 items, α = 0.75), internalised moral perspective (4
items, α = 0.79), and balanced processing (4 items, α = 0.76). Note two (2) items from leader self‐awareness
loaded into the variable of relational transparency.
Servant leadership was measured using Page and Wong’s (2000) scale. To avoid the questionnaire becoming
too large and cumbersome, the original Page and Wong’s (2000) 99 items were reduced to 40. The 40 items
are those measuring eight distinct descriptors of servant leadership, namely: integrity, servant‐hood, caring for
others, empowering others, visioning, modelling, team‐building and goal setting. Page and Wong’s descriptors
of humility, developing others, leading and shared decision –making were not measured in this study.
Responses to the 40 items were made on a 7–point Likert response scale with response options from “strongly
disagree” to “strongly agree”. The results of the CFA supported the independence of the 8 factors: integrity (5
items, α = 0.88), servant‐hood (5 items, α = 0.86), caring for others (5 items, α = 0.87), empowering others (5
items, α = 0.83), visioning (5 items, α = 0.89), modelling (5 items, α = 0.88), team‐building (5 items, α = 0.85),
and goal setting (4 items, α = 0.89). In addition, the measures achieve adequate convergent validity as the
average variance extracted (AVE) for each construct was greater than 0.5 (Fornell and Larker (1981).
Consideration and initiating structure leadership measures were assessed using Stogdill’s (1963) short version
LBDQ. Based on the results of CFA supporting two factors, these items were used to create two scales:
consideration (6 items, α = 0.79), and initiating Structure (6 items, α = 0.75).
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4.2 Dependent variables
Team performance was assessed using Crouch’s (1980) 5‐scale of Crouch’s behavioural inventory instrument.
Responses to the 5 items were made on seven‐point scale with response options from “definitely agree” to
“definitely disagree”. The five‐item scale resulting from the CFA of this study showed a good internal reliability
coefficient (5 items, α = 0.77). Moreover, the measures achieve adequate convergent validity as the average
variance extracted (AVE) was greater than 0.5 (AVE = 0.51).The model of Figure 1 shows the hypothesised
relationship between team performance, authentic and servant leadership.
Authentic Leadership
(Walumbwa et al. 2008)
• Leader self-awareness
• Relational transparency
• Internalised moral perspective
• Balanced processing
Figure 1: Summary of variables used in the paper
4.3 Results and hypotheses testing
Descriptive analyses of responses for team performance and the various leadership styles were performed first
to identify any prevailing patterns. Moreover, the hypothesised relationships between team performance and
leadership measures were tested using Pearson’s correlation coefficients. Table 1 contains the means,
standard deviations, and the Pearson’s correlations coefficient estimates for the first order factors investigated
in this study.
Table 1: Means, standard deviations and correlations coefficient estimates for team performance, authentic,
servant, initiating structure and consideration leadership
Latent Mean σ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Variable
st
Authentic Leadership – 1 Order Factors
1. Self‐
2.84 0.83 .78
Awareness
2. Relational 2.84 0.55 .30 .75
transparency
3. 2.90 0.74 .48 .40 .79
Internalised
moral
perspective
4. Balanced
2.85 0.63 .26 .57 .31 .76
processing
st
Servant Leadership Descriptors – 1 Order Factors
5. Integrity 5.14 0.88 .23 .31 .19 .33 .88
6. Servant‐ 5.34 0.84 .29 .44 .33 .39 .66 .86
hood
7. Caring for 5.35 0.89 .27 .49 .28 .49 .49 .75 .87
others
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N = 181
Cronbach alpha reliability estimates (αs) are located on the diagonal
All Person’s correlation estimates (rs ≥ 0.19 are statistically significant, p < 0.01. Note: rs not reported if are not
statistically significant.
Also the structural model of Figure 2 was examined using second (2nd) order factors. The analysis revealed that
the model of Figure 2 fits the data very well, with (χ2/df = 0.27); ρ = 0.14; GFI = 0.99; AGFI = 0.99; CFI = 0.99;
TLI = 0.98; RMR = 0.002; and RMSEA = 0.001. Standardised path estimates are provided to facilitate
comparison of regression coefficients.
Authentic
Leadership .23*
Servant
.43**
Leadership Team
Performanc
.20* e
Considerati
on
.08*
Initiating
Structure
α = .75
N = 181
** ρ < 0.01); * ρ < 0.05
Figure 2: Second order factors structural model
There are several important observations regarding Table 1. First, it can be noted that all first order factors
display reliabilities greater than the recommended value of 0.70 (Hair et al. 1995). Second, the AVE for each
construct is greater than 0.5 suggesting adequate convergent validity for these constructs (Fornell and Larker
(1981). Finally, the correlations between team performance and authentic leadership were comparable to
those of initiating structure and consideration, but lower compared to servant leadership. In other words
servant leadership had a significant greater effect on team performance compared to authentic, initiating
structure and consideration leadership. Theoretical and empirical rationale for the hypothesised relations
between constructs are discussed in the following section.
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4.3.1 Hypotheses testing
The results provided support to all three hypotheses for both first and second order factors. As predicted, H1
was supported by the data of this study, in that the four underlying dimensions of authentic leadership were
positively and significantly related to team performance. That is team performance was related with leader
self‐awareness (r = 0.24, ρ < 0.01), relational transparency (r = 0.45, ρ < 0.01), internalised moral perspective (r
= 0.24, ρ < 0.01) and balanced processing (r = 0.43, ρ < 0.01).
Moreover, team performance showed strong, positive and significant (ρ < 0.01) correlation with each of the
eight descriptors of servant leadership, hence fully supporting H2. Specifically, team performance is positively
and significantly related to integrity (r = 0.32); servant‐hood (r = 0.38); caring for others (r = 0.38); empowering
others (r = 0.53); visioning (r = 0.51); modelling (r = 0.60); team‐building (r = 0.48) and goal setting (r = 0.53).
H3 stated that “correlations of team performance with the consideration leadership factor will be stronger,
and more positive, than those with the initiating structure leadership factor”. H3 was fully supported by the
data of this study in that the correlation between team performance and consideration (r = 0.43, ρ < 0.01) was
more positive compared to the initiating structure‐team performance relationship (r = 0.36, ρ < 0.01).
Similar patterns of relations found in the AMOS structural model (see Figure 2). It was clearly demonstrated
that (i) servant leadership had a significant greater effect on team performance (r = 0.43, ρ < 0.01) compared
to authentic leadership (r = 0.23, ρ < 0.05), and (ii) consideration leadership had significantly greater influence
on team performance (r = 0.20, ρ < 0.05) compared to initiating structure leadership (r = 0.08, ρ < 0.05), thus
supporting H3.
5. Discussion
The purpose of this study was to (i) investigate which of the four leadership styles will have the greatest
impact on team performance, and (ii) which of the two ethical leaderships will demonstrate greater influence
on performance, which in turn could assist organisations to select and/or appoint leaders who would enhance
organisational effectiveness and performance. The findings of this study clearly support that servant
leadership is a significant predictor of team performance as its association (at the higher order factor level)
with team performance is positive, strong and significant (r = 0.43, ρ < 0.01). It also had a significant greater
effect on team performance compared to authentic leadership. These findings suggest that servant leadership
has an important role to play in an organization which is competing on performance provided that the
organization does not experience drastic restructuring and enjoys sustainable profitability for many years.
Although this finding is in disagreement with the literature which argues that servant leadership philosophy
(the welfare of followers is the top priority for servant leader) is more important than the performance of the
organisation (Graham 1991), it provides another condition that facilitate servant leadership. The findings of
this study challenge the perception that “....servant leadership may be less appropriate as a guide for effective
leadership in business corporations ....” (Yukl 2010, p.342). That is because the results of eight underlying
st
dimensions of servant leadership (1 order factor) had a significant greater effect on team performance
compared to authentic leadership. Thus the condition that facilitate any kind of leadership should be known
because the wide variety of situations in which leadership occurs will determine if certain type of leadership is
likely to be effective on organisational performance.
As discussed earlier the effect of authentic leadership on team performance was comparable to that of
consideration leadership (at the higher order level), because without a doubt consideration leaders may also
have a deep sense of ethical values. For example, Jones and George (2009) presented consideration leaders as
those who “....look out for the well‐being of their subordinates” (p.505) – behaviours consistent with the core
values for authentic leaders of “....high mutual trust........ and emphasis on follower welfare and development”
(Yukl 2010, p.345). This finding highlights the need for organisations to consider employing and/or develop
authentic and consideration leadership behaviours, that we suspect enhance followers’ trust in the leader and
consequently result in job performance.
The behaviour of leaders that ensures work gets done, subordinates perform their jobs acceptably, and the
organisation is efficient and effective (e.g. initiating structure leaders) do not always improve measures of
performance, especially when employees are exposed to authentic and servant leadership behaviours. The
findings of the present study suggest that organisations should avoid certain leader behaviour, such as the
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initiating structure, if their competitive advantage is obtained through organisational performance. Results
also showed that authentic and servant leadership accounted for 59% of the variance in team performance,
suggesting organisations should train and/or employee those leaders who are vested with ethical leadership
behaviours (authentic and servant leadership) if they wish to maintain and/or enhance team performance.
In conclusion, this study contributes to an emerging research on authentic and servant leadership, which thus
far has received evidence from research on empowerment, leader integrity, supportive leadership and ethical
leadership (Yukl 2010). The findings suggest that training leaders to be more authentic and servant (ethical)
may provide positive returns on the investment. Indeed, combining authentic, consideration and servant
leadership into training schedules could enhance employees’ motivation and provide high levels of
performance. Moreover, given the high‐profile cases of unethical leadership, such as the AIG, the Royal Bank
of Scotland, the Lehman brothers and Laiki Bank of Cyprus, authentic and servant leadership, and by extension
ethical leadership, may prove to be a useful means to identify, monitor and blacklist unethical leaders in order
to avoid future bankruptcies.
5.1 Limitations and future research directions
There are a number of limitations that need to be addressed when considering the findings. The first limitation
is related to the servant leadership questionnaire, which included 40 items instead of 99 items proposed by
Page and Wong (2000). As a result we have not assessed the underlying dimensions of humility, developing
others, leading and shared decision‐making. Further research would be needed to include these constructs in
the set of dependent variables in order to obtain a more comprehensive assessment concerning the servant
leadership behaviours. Second, the cross‐sectional design of the study renders it vulnerable to problems
associated with common method variance. To account for the problem of common method variance, future
research would be needed to collect data from multiple sources (Spector 1987), and perform longitudinal
studies to explore in greater detail the team performance – leadership relationship. Third, the research
hypothesised linear relationships between team performance and the various leadership behaviours (e.g.
authentic, servant, consideration and initiating structure) without accounting for any other situational
variables; hence causation cannot be tested directly. Other variables need to be included in the research
model, such as emotional intelligence, trust, culture and organisational conditions. For example, the team
performance – servant leadership strong and significant relationship cannot be generalised because of the
specific condition of the participating organisation (e.g. it does not experience drastic restructuring and enjoys
sustainable profitability for many years). Thus, more research is needed to determine how servant leadership
influence followers and the conditions that determine if this type of leadership is likely to be effective on
organisational performance.
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