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THE IMPORTANCE OF LEADERSHIP STYLES IN DECISION MAKING PROCESS:

A RESEARCH IN CHARITY ORGANIZATIONS IN IRAQ

Thesis · June 2018

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 R.T.
SELÇUK UNIVERSITY
INSTITUTE OF SOCIAL SCIENCES
DEPARTMENT OF BUSINESS
PROGRAM OF MANAGEMENT ORGANIZATION

THE IMPORTANCE OF LEADERSHIP STYLES IN

DECISION MAKING PROCESS: A RESEARCH IN
CHARITY ORGANIZATIONS IN IRAQ

Mohammed Saber Jami JAMI

MASTER THESIS

Supervisor

Prof. Dr. Adnan ÇELİK

KONYA – 2018
 T. C.
SELÇUK ÜNİVERSİTESİ
Sosyal Bilimler Enstitüsü Müdürlüğü

Bilimsel Etik Sayfası

Adı Soyadı Mohammed Saber Jami JAMI

Numarası 154227012008
Öğrencinin

Ana Bilim / Bilim İşletme / Yönetim ve Organizasyon

Dalı
Programı Tezli Yüksek Lisans Doktora

The Importance of Leadership Styles in Decision Making Process: A

Tezin Adı
Research in Charity Organizations in Iraq

I hereby declare that all information in this document has been obtained and
presented in accordance with academic rules and ethical conduct. I also declare that,
as required by these rules and conduct, I have fully cited and referenced all material
and results that are not original to this work.

Bu tezin proje safhasından sonuçlanmasına kadarki bütün süreçlerde bilimsel

etiğe ve akademik kurallara özenle riayet edildiğini, tez içindeki bütün bilgilerin etik
davranış ve akademik kurallar çerçevesinde elde edilerek sunulduğunu, ayrıca tez
yazım kurallarına uygun olarak hazırlanan bu çalışmada başkalarının eserlerinden
yararlanılması durumunda bilimsel kurallara uygun olarak atıf yapıldığını bildiririm.

Mohammed Saber Jami JAMI

Alâaddin Keykubat Kampüsü Selçuklu 42079

KONYA Telefon : (0 332) 241 05 21-22 Faks: (0 332) 241 05 24
e-posta: sosbilens@selcuk.edu.tr Elektronik Ağ: www.sosyalbil.selcuk.edu.tr

i
 ACKNOWLEDGEMENT

I sincerely thank Almighty God for the successful completion of my academic

journey by giving me the courage, strength and patience.

I would like to thank my supervisor Prof. Dr. Adnan ÇELİK, because he guided me,
trusted me, taught me and helped me every time.

I would also like to thanks Prof. Dr. Tahir AKGEMCİ, Prof. Dr. Fehmi
KARASİOĞLU, Prof. Dr. Orhan ÇOBAN, Assoc. Prof. Dr. Ali ERBAŞI and
research Assistants, Hande ULUKAPI YILMAZ, Akın ABUL and Esra Kızıloğlu,
they helped me and motivated me a lot.

Finally I would like to thank my lovely sister Ms. Vinos Saber Jami JAMI for all of
her help.

iii
Dedicated to my beloved mother

iv
 T. C.
SELÇUK ÜNİVERSİTESİ
Sosyal Bilimler Enstitüsü Müdürlüğü
Adı Soyadı Mohammed Saber Jami JAMI
Numarası 154227012008
Öğrencinin

Ana Bilim/ Bilim Dalı İşletme / Yönetim ve Organizasyon

Programı Tezli Yüksek Lisans Doktora
Karar Verme Sürecinde Liderlik Türlerinin Önemi: Irak'taki Hayır
Tezin Adı Kuruluşlarında Bir Çalışma

ÖZET

Örgütlerin farklılaşan yapısı ve değişen çalışan profili, liderlik kavramının

bireylerin aynı anda farklı niteliklere sahip olmasını gerektiren çok boyutlu bir süreç
olmasını gerektirmektedir. Özellikle yardım organizasyonlarında İşe yönelik ve
insana yönelik liderlik özelliklerinin başarılı liderlik uygulamaları için gerekli olduğu
ve karar verme sürecinde bu dengenin sağlıklı bir şekilde kurulması önem arz
etmektedir.

Bu çalışmada Irak’taki uluslararası yardım organizasyonlarında görev alan

yöneticilerin ve çalışanların görüşlerine göre liderlik stillerinin karar verme
üzerindeki etkisi incelenmiştir. Tarama modeliyle gerçekleştirilen bu araştırmada
Irak’ta hâlihazırda faaliyetlerine devam eden 14 yardım kuruluşunda görev yapmakta
olan 430 çalışan araştırma kapsamına alınmıştır. Araştırmada verilerin toplanmasında
üç boyuttan oluşan ‘Liderlik Stilleri Ölçeği’ (Etkileşimli, Dönüşümcü ve Serbestlik
Tanıyan Liderlik) ve tek boyutlu ‘Karar Verme Ölçeği’ kullanılmıştır. Araştırmanın
bulgularına göre Irak’ta faaliyette bulunan yardım kuruluşlarının çalışanlarının
görüşlerine göre kendi örgütlerinin yöneticilerinin güçlü-yüksek dönüşümcü ve
etkileşimli liderlik stillerine sahip oldukları buna karşın orta düzeyde serbestlik
tanıyan bir liderlik stili sergiledikleri görülmüştür. Yine yardım organizasyonlarında
çalışanlar yöneticilerin güçlü ve yüksek bir karar verme düzeyine sahip olduklarını
ifade etmişlerdir. Araştırmada gerçekleştirilen korelasyon analizlerine göre karar
verme ile tüm liderlik stilleri arasında anlamlı bir ilişki bulunmuştur. Bununla
birlikte karar verme davranışı sadece dönüşümcü ve etkileşimli liderlik stilini anlamlı
düzeyde yormaktadır.

ANAHTAR KELİMELER: Etkileşimli Liderlik, Dönüşümcü Liderlik, Tam

Serbestlik Tanıyan Liderlik, Karar Verme.

v
 T. C.
SELÇUK ÜNİVERSİTESİ
Sosyal Bilimler Enstitüsü Müdürlüğü
Adı Soyadı Muhammed Saber Jami JAMI
Numarası 154227012008
Öğrencinin

Ana Bilim / Bilim Dalı İşletme / Yönetim ve Organizasyon

Programı Tezli Yüksek Lisans Doktora
The Importance of Leadership Styles in Decision Making
Tezin Adı Process: A Research in Charity Organizations in Iraq

SUMMARY

The divergent nature of organizations and the change of working profile

require the concept of leadership to be a multidimensional process, which requires
individuals to have different qualities at the same time. It is especially important for
charity organizations that job-oriented and human-oriented leadership skills are
essential for successful leadership practices and that this balance should be
established in a healthy manner during the decision-making process.

This study examined the role of leadership styles in decision making

according to the views of managers and employees in international charity
organizations in Iraq. In this survey conducted by the screening model, 430
employees currently working in 14 charities organization in Iraq are included in the
research. The 'Leadership Styles Scale' (Transactional, Transformational and lassies
faire Leadership) and the one-dimensional 'Decision Making Scale' were used to
collect data in the study. According to the findings of the research, the workers of
Iraq's charity organizations found that the managers of their organizations had a
moderately liberal leadership style, while they had strong-high transformational and
transactional leadership styles. Employees in charity organizations also stated that
managers have a strong and high level of decision-making. According to the
correlation analysis performed in the research, a meaningful relationship was found
between decision making and all leadership styles. Decision-making behavior,
however, is only reasonably driven by the transformational and transactional
leadership style.

KEY WORDS: Transactional Leadership, Transformational Leadership, Lassies

Faire Leadership, Decision Making.

vi
 CONTENTS

BİLİMSEL ETİK SAYFASI ...................................................................................... i

TEZ KABUL FORMU .............................................................................................. ii
ACKNOWLEDGEMENT ........................................................................................ iii
ÖZET........................................................................................................................... v
SUMMARY ............................................................................................................... vi
CONTENTS .............................................................................................................. vii
LIST OF TABLES ..................................................................................................... x
LIST OF FIGURES .................................................................................................. xi
INTRODUCTION ...................................................................................................... 1
FIRST SECTION: CONCEPT OF LEADERSHIP AND LEADERSHIP
STYLES ...................................................................................................................... 4
1.1. Concept of Leadership ..................................................................................... 4
1.2. Importance of Leadership ................................................................................ 5
1.3. History of Leadership ....................................................................................... 7
1.4. The Difference Between Leadership and Management ................................... 8
1.5. Gender Roles in Leadership ........................................................................... 10
1.6. Leadership Theories ....................................................................................... 12
1.6.1. Trait Approach to Leadership ................................................................ 12
1.6.2. Behavioral Theories of Leadership ........................................................ 14
1.6.2.1 The Iowa Studies ............................................................................. 15
1.6.2.2. The Ohio State Studies ................................................................... 16
1.6.2.3. The Michigan Studies .................................................................... 17
1.6.2.4. The Managerial Grid ...................................................................... 18
1.6.3. Contingency Theories of Leadership ..................................................... 19
1.6.3.1 Fiedler’s Contingency Model .......................................................... 20
1.6.3.2. Hersey and Blanchard’s Situational Theory .................................. 22
1.6.3.3 House’s Path Goal Theory .............................................................. 24
1.6.3.4. Normative Decision Theory ........................................................... 25
1.7. Leadership Styles ........................................................................................... 26
1.7.1. Transactional Leadership ....................................................................... 27
1.7.1.1. Dimensions of Transactional Leadership ....................................... 29
1.7.1.1.1. Contingent Reward ................................................................ 29

vii
 1.7.1.1.2. Active Management by Exception ......................................... 29
1.7.1.1.3. Passive Management by Exception ........................................ 29
1.7.2. Transformational Leadership ................................................................. 30
1.7.2.1. Dimensions of Transformational Leadership ................................. 31
1.7.2.1.1. Charisma (Idealized Influence): ............................................. 31
1.7.2.1.2. Inspirational Motivation ......................................................... 32
1.7.2.1.3. Intellectual Stimulation .......................................................... 32
1.7.2.1.4. Individual Consideration ........................................................ 33
1.7.3. Laissez-Faire Leadership ....................................................................... 33
1.7.4. Comparison Between Transactional and Transformational ................... 35
SECOND SECTION: CONCEPT OF DECISION MAKING............................. 36
2.1. Concept of Decision Making ......................................................................... 36
2.2. The Importance of Decision Making in Organizations .................................. 39
2.3. Types of Decision Making ............................................................................. 41
2.3.1. Programmed Decisions .......................................................................... 41
2.3.2. Non-Programmed Decisions .................................................................. 42
2.4. Decision Making Process and Steps .............................................................. 43
2.4.1. Identify or Define the Problem or Opportunity...................................... 45
2.4.2. Identifying Limiting Factors .................................................................. 46
2.4.3. Develop Alternative ............................................................................... 47
2.4.4. Choosing Best Alternative ..................................................................... 47
2.4.5. Implementation the Decision ................................................................. 48
2.4.6. Evaluate the Decision ............................................................................. 48
2.5. Models of Decision Making ........................................................................... 49
2.5.1. Classical Model ...................................................................................... 49
2.5.2. Normative Model ................................................................................... 50
2.5.3. Political Model ....................................................................................... 51
2.5.4. Intuitive or Intuition Model.................................................................... 52
2.5.5. Administrative Model ............................................................................ 53
THIRD SECTION: THE IMPORTANCE OF LEADERSHIP STYLES IN
DECISION MAKING PROCESS: A RESEARCH IN CHARITY
ORGANIZATIONS IN IRAQ ................................................................................ 54
3.1. Importance and Purpose of Research ............................................................ 54
3.2. Scope of the Research ................................................................................... 54

viii
 3.3. Data Collection Tool and Scales ................................................................... 57
3.3.1. Questionnaire Design ............................................................................. 57
3.3.2. Sampling ................................................................................................ 58
3.4. Limitations of the Study ................................................................................. 59
3.5. Research Hypothesis and Model .................................................................... 59
3.6. Validity and Reliability of the Study ............................................................. 60
3.7. Research Findings .......................................................................................... 61
3.7.1. Demographic Characteristics of the Participants ................................... 61
3.7.2. Standard Division and Means of Transactional Leadership .................. 63
3.7.3. Standard Division and Means of Transformational Leadership ............ 64
3.7.4. Standard Division and Means of Lassies Faire Leadership ................... 65
3.7.5. Standard Division and Means of Decision Making ............................... 65
3.7.6. Correlation Analysis Results .................................................................. 66
3.7.7. Regression Analysis Results .................................................................. 67
3.7.8. Results of the Analysis of Diversity According to Demographic
Characteristics ............................................................................................................ 69
3.7.8.1. T-Test Analysis Results ................................................................. 69
3.7.8.2. ANOVA Analysis Results ............................................................. 70
CONCLUSION AND RECOMMANDATIONS ................................................... 74
REFERENCES ......................................................................................................... 77
APPENDIX ............................................................................................................... 88
CURRICULUM VITAE .......................................................................................... 91

ix
 LIST OF TABLES

Table-1.1. The Difference Between Leader’s Qualities and Manager’s Qualities...... 9

Table-1.2. Behavioral Theories of Leadership .......................................................... 14
Table-1.3. The Difference Between Transactional and Transformational ................ 35
Table-2.1. The Difference Between Programmed and Non-Programmed Decisions 43
Table-3.1. Results of the Reliability Analysis of the Used Scales ............................ 60
Table-3.2. Gender ...................................................................................................... 61
Table-3.3. Marital status ............................................................................................ 62
Table-3.4. Age ........................................................................................................... 62
Table-3.5. Education ................................................................................................. 62
Table-3.6. Expireances .............................................................................................. 63
Table-3.7. Mean and Standard Deviation of Transactional Leadership .................... 63
Table-3.8. Mean and Standard Deviation of Transformational Leadership .............. 64
Table-3.9. Mean and Standard Deviation of Lassies Faire Leadership ..................... 65
Table-3.10. Mean and Standard Deviation of Decision Making ............................... 65
Table-3.11. Correlation Analysis Between Leadership Styles and Decision Making
.................................................................................................................................... 66
Table-3.12. Regression Analysis Between Transactional and Decision Making ...... 67
Table-3.13. Regression Analysis Between Transformational and Decision Making 68
Table-3.14. Regression Analysis Between Lassies Faire and Decision Making ...... 68
Table-3.15. Decision Making According to Gender ................................................. 69
Table-3.16. Decision Making According to Material State ...................................... 70
Table-3.17. ANOVA Test Between Decisions Making in Terms of Age ................. 70
Table-3.18. ANOVA Test Between Decisions Making in Terms of Education ....... 71
Table-3.19. ANOVA Test Between Decisions Making in Terms of Experience ..... 71
Table-3.20. Results of the Analysis Related to the Hypothesis ................................ 72

x
 LIST OF FIGURES

Figure-1.1. The Managerial Grid .............................................................................. 19

Figure-1.2. Findings From the Fiedler Model ........................................................... 22
Figure-1.3. Hersey and Blanchard’s Situational Theory ........................................... 24
Figure-2.1. The Steps of Decision Making ............................................................... 45
Figure-3.1. Theoretical Model .................................................................................. 60

xi
 INTRODUCTION

All of the theories and historical study indicates about important of leader in
every situation for what are needs to be done in the smallest way while obtaining the
good consequence and most outcomes. Leaders must have roles in decision making
and helps other to making decision, because making decision is not easy in every
situations it needs a leader in every organization.

Decisions are made by leaders – decisions about what to do, when to do it,
with whom, why, how, for how long, resulting in what end and assuming what.
Sometimes these decisions have positive results; sometimes negative. Sometimes
decisions are made with others and sometimes alone, but always based on others.
Strangely enough to make decisions that sometimes leads. Regardless of the actions
of a person, a decision is always made, even if it is a decision not to decide anything
(Middlebrook and Miltenberger, 2008: 1).

Leaders have the responsibility of making decisions through establishing an

organized process. Leaders must decide at which level decisions are organized, and
what extent they should allow employers to participate in the organizational
decision-making process and have the best approach to making decisions (Abood and
Thabet, 2017: 71).

Leaders have to know what types of decisions to make that may keep the
interest of the stakeholders that are involved. If their leader doesn’t agree with the
decisions they make in the organization followers may be not completely committed
to a team. Employees with active participation are often taken into account in making
decisions because they are the ones to apply and implement them. Leaders and
managers have to create a climate that helps he employee participate by sharing their
information and helping in decision making (Ejimabo, 2015: 2).

Not all the times the leaders have good and helpful knowledge and time;
therefore they have to try to get more information and try to manage their time
because decisions delaying may effect on the organization negatively. When leaders
declare, they will accumulate all available information at different levels of the
institution, as time permits. They need also be sure that their sources of knowledge
and information are accurate and reliable, and that bad decisions may have bad

1
results and consequences; at the same time they have to realize that changes in the
business environment can affect their decisions (Abood and Thabet, 2017: 71).

Leadership is the process of affecting others to agree and understand about

things that need to be done and the way of doing it, and the process of facilitating
collective and individual efforts to complete shared objectives. Leadership is the
influence and the ability of influencing your subordinates, your bosses, and your
peers in an organizational or work context. Without influencing, it is not possible to
be a leader because by the effective indicates that is a leader (Goffee and Jones,
2007: 1).

Leadership can be also counted as a process rather than only a personal

quality. The leadership process is characterized by the impact, not only of the
leaders upon followers, but also as the interactive influence and relationship between
the followers and the leaders (Silva, 2016: 3).

Transactional leadership focuses on staff’s external and basic demand, the

relationship between subordinates and leaders is based on a contract. The
transactional leader have to first of all validate and prove the relationship between
reward and performance and then exchange it to an appropriate answer and return
which may encourage followers and subordinates for improving performance or
improving their skills and their knowledge (Wamy and Swamy, 2014: 58).

Transformational focuses on the connections are formed between followers

and leaders. So in this style, leadership is considered as the process through which a
person engages with others and has the ability to “form a connection” and this results
increases morality and motivation in both leaders and followers (Uzohue et al, 2016:
20).

The laissez-faire style can be also known as the hands-off ̈ style. This is one
that the manager provides little or no direction and helps the employees to have as
much freedom as possible. This style may look simple and easy applying between
subordinates and the leaders. Leaders who embrace by name of laissez-faire
leadership style, will be accept that they have little control over the followers so that
they have freedom to carry out the tasks they are assigned without direct supervision
(Aunga and Masare, 2017: 44).

2
 However, decision making is not only considering as taking the right
compromises. Even it is a decision has deteriorated into work, and is a good
intention. It is not a decision (Harvey, 2007: 3). Making decisions have relations with
an individual’s autonomy and the essence of what is regarded as personhood, also it
is a basic component in helping an individual of having control over life and
engaging with the society (Pathare and Shields, 2012: 2). Decision making in
business is about compromises or choices so that to meet business objectives. But is
not just about choosing the right compromises or choices. ‘Unless a decision has
‘deteriorated into work’, is not a decision (Harvey, 2007: 3).

The process of choosing a logical selection among the options those are
available. When attempting to make good decisions, a person must know the
negatives and positives of each option, and consider the different alternatives. For
influential decision making, an individual have to be capable to forecast the result of
each option as well, and based on these items, try to find which option may be the
best for a particular situation (Armesh, 2012: 1).

Leadership has influences on everything that is the best performance by their

skills, and when a person has self-esteem and can be involved in a job, so leader’s
capability of changing the employer’s ideas about involving her or him in jobs, that
time making decisions will be easier because we will achieve self-esteem while there
are problems or opportunity these have to decide also choice and choosing the best
ways for solving the problems and decide on the opportunities.

This study includes three sections the first section is leadership and leadership
styles like transactional, transformational and laissez-faire leadership. The second
section is decision making, decision making process, steps and models of decision
making have explained. In the last section the relationship between the styles of
leadership like transactional, transformational, laissez faire leadership with decision
making in charity organizations in Iraq explicated. And followed by conclusion and
recommendations.

3
 FIRST SECTION

CONCEPT OF LEADERSHIP AND LEADERSHIP STYLES

This section is based on the leadership process first, the definition of

leadership concept and components were discussed and then the differences between
leader and manager, gender in both, history of leadership and elements
complementary to each other are explained and the variety in the literature taking
leadership theories as a strategic background. Finally, indicated the three styles of
leadership like transactional, transformational and lassies faire leadership.

1. 1. Concept of Leadership

Barnard Bass, in 1990 describes leadership as a “universal phenomenon. He

has defined it as “an interaction between two members or more of a group that often
involve a restructuring or structuring of the perception, situation and expectations of
the members (Ver, 2009: 4).

Leaders are not born as leaders, leaders are made. This idea is accepted,
however, so as to be a good leader, an individual have to have knowledge,
commitment, patience, experience, and most importantly, the ability to negotiate and
work together with others to reach their goals. So good leaders are born, not born.
Good leadership can be improved or developed with a never-ending process of
accumulation of education, training, self-study and appropriate experience
(Amanchukwu et al, 2015: 6).

Leaders have to be knowledgeable and aware of the best ways. It is associated

with making good leadership in making decisions in their establishments. They need
to know that what types of decision they make have outcomes. These decisions
influence their subordinates either negatively or positively, also all the organization.
The success of the organizations may depend on any decisions their leaders make
(Ejimabo, 2015: 2).

Leadership has a great role in the organization process. Leaders are not only
able to control many of the levers of organization, but they have very potent role
models for organizational members (Kramer and Staw, 2003: 6). Although
leadership is the most extensively studied topic in the behavioral, social, and

4
management sciences, and there is no much consensus about the essential features of
an effective leadership (Schneider and Smith, 2004: 17). Leadership is the process of
affecting the others so that to achieve group or organizational goals. When a person
makes all the decisions, that’s not leadership that’s boss (Williams, 2015: 289).

Leadership is also has defined as the process of affecting others in a way that
increases their contribution to the realization of the goals of a group. This process is
seen to involve the positive influence of a person on the behavior of many others
and, that’s why, it is often viewed as the key to an efficient and effective
organizations. If an exceptional person is able to marshal all the energies of others,
logic dictates that effort expended in retaining, recruiting and understanding such a
person the effort well be spent. For this reason ‘leadership training is considered as a
big business. It is no surprise to find that leadership is widely considered ‘the most
important thing in the realm of organizational behavior’ and also the most researched
(Haslam, 2004: 40).

Good leaders will be make not will be born. If you have the power, desire and
skills, you may become a good leader. Effective leaders go through a never ending
process of training, experience, self-study, and education. Organizations are in the
need of strong management and leadership for optimal effectiveness. We have to
leaders today to have the ability to challenge the create visions and status quo of the
future, and making inspiration for organizational members to have the desire to
obtain the visions. We need leaders to formulate detailed plans as well as creating
efficient organizational structures, and oversee the operations that are day-to-day
(Robbins and Judge, 2013: 368).

1.2. The Importance of Leadership

The importance of leadership is mainly judged in terms of its influence on the

effectiveness of an entity that is led. According to Bill George, leading is the ability
to help superior results sustain over a period of time’. However, it is a more widely
pervasive phenomenon than this (Adams, 2011: 27). Leadership is important;
actually, it is important for guiding the organization toward good objectives and
applying other management functions (Hill and Mcshane, 2008: 6).

5
 Leadership is the capability of corresponding to change. Exerting Leadership
is organizing a new value or worth with vision. Leadership also requires mentoring
new leaders and training them for the next generation (Ueno, 2001: 18). Leadership
is a measure of the skills and experience to successfully bring out or emphasize extra
performance from others, and the compliance with the acceptance of authority
measured the perspective the individual has about regulations and rules (Anderson et
al, 2005: 116). Leaders are important in the companies. Their role is to “help and
direct others in performing their task, they create culture of efficiency” and they
maintain stability. On the other hand, leaders can create vision and strategy. Leaders
help others focus on people and to grow; motivate and inspire, they create a change
and a culture of integrity (Elhajj, 2013: 2).

Over time, which have a large variety of theories pertaining to leadership

importance roles in all group endeavors that have to lead to the development (Levine,
2000: 5). Leadership is important in the procurement context because, within an
organization, procurement concerns and touches many aspects of the overall
organizational operation. An individual should learn everything about an
organization by watching what it wants and what it needs, when it buys, what it buys,
what it buys and how it does with what it buys. Conversely, poor purchasing
performance causes poor performance by the organization overall. Money spent on
bad procurement process and decision destroys organizational effectiveness. Thus,
the importance of leadership and procurement is difficult to exaggerate (Bauld and
Mcguinness, 2010: 8).

Leadership is a special type of interpersonal relationship selects values,

motivates, coaches, build like ideal models or typologies (Mironescu, 2013: 249).

Some benefits of good leadership are as follows (Rtu, 2000: 5):

 Can decrease employee dissatisfaction

 Encouraging effective deputation or delegation
 Making team spirit
 Helping in developing self-confidence and skills in the group
 Help to enlist cooperation and support from people outside the organization.

6
 The leader helps in guiding the action of the employee in accomplishing the
tasks. A leader who is good and experienced creates confidence, motivates his
subordinates and increases the morale of the workers. Good leadership is a condition
for the success of any business, the business leaders are the vital resources of any
enterprise (Rtu, 2000: 5).

In the below following points show the importance of leadership (Madah,

2016: 254):

 Leadership is the process of affecting the actions and tasks of a group or an

individual towards the goal fulfillment.
 An effective leader helps in motivating his subordinates for a better level of
performance.
 Leadership increases team- work and team- spirit which is basic for the
success of any establishment.
 Leadership is a basic aid to authority. A leadership helps in the influential use
of formal authority.
 Leadership helps in creating confidence in the followers through giving them
advice and guidance.

1.3. The History of Leadership

The same as other topics leader has a history of general researches and
studies, so we can describe its’ historical side briefly and give some definitions based
on the dates and years, and described the Greek, China and Egypt’s leadership.

In antiquity, it is more leadership and well-known concepts, sometimes from

various mythological gods. It has been associated. The communication of the leaders
is Hermes, Athena's ability to develop strategy and the power of Zeus appears to be
associated in Egypt, similar leadership understanding in parallel with god-king
understanding shows. To the concept of leadership in ancient China is known to be
found (Şahne and Şar, 2015: 110).

The main focus is on leader as a hero that was described by Thomas Carlyle
in 1840. And Herbert Spencer (a fellow Victorian) later expressed a contrasting

7
view which he says that the heroic leaders are the commodity or product of their time
and prevailing the social conditions (Early, 2016: 1).

Some definitions of leadership which are based on history (Eckmann, 2001:

1):

 The directive and innovator force of morale (Munson, 1921).

 Leadership is a mutual stimulation process that controls human energy for
the sake of a common purpose with the successful interaction of the
respective individual differences (Pigors, 1935).
 The process by which factor involves a subclass to behave in a desired
manner (Bennis, 1959).
 Presence of a specific effect relationship between two or more people
(Hollander & Julian, 1969).
 To transform the viewers, to create visions of the goals that can be achieved,
and to express ways of achieving these goals for followers (Bass, 1985).
 The process of affecting an organized group to achieve its goals (Roach and
Rehling, 1984).
 The task of the Leader is to create conditions for the team to be effective.
(Ginnett, 1996).
 Leadership is the thing that wins battles (Patton, 1940).
 Leadership is an effective relationship between followers and leaders seeking
real changes that reflect mutual goals (1991).

1.4. The Difference Between Leadership and Management

Hundreds of articles and books have published in recent the years which talk
about the differences between that two topics leadership and management. Good
management is essential and basic in organizations; good managers should be leaders
too, because the distinctive qualities that are associated with management and
leadership provide different strength for the organization. As shown in table-1.1.
Leadership and management reflect two different sets of skills and qualities that
frequently used within a single individual. An individual person can have more than
one set of quality than another one, but ideally a manager enhances a balance of both
leader and manager quality (Daft, 2011: 428).

8
 Not all managers are leader; not all leaders are manager. According to an
observer, “Management is about the way of coping with complexity. Good
management brings about consistency and order by drawing up formal plans,
monitoring results against the plans, and designing rigid organizational structures.
While leaders exercise the impacts in a more informal and not structured manner,
managers have formal decision-making positions in the organization. Management
jobs may provide the chances for leadership, and managers are likely to be more
effective through combining formal authority for making decisions and allocate
resources with the ability of motivating the subordinates (Mejia and Balkin, 2012:
351). Some leaders are very good managers while some managers are very good
leaders (Bertocci, 2009: 9).

Another distinction between leadership and management is management

enhances problem solving, stability and order within the existing organizational
systems and structures. Leadership also promotes vision, change and creativity. A
leader brings you to a new place, but “a manager takes care of where you are.
Leadership means questioning the status quo so that it is outdated, socially
irresponsible norms can be replaced to meet some new challenges. , good leadership
is necessary to move the organization into the future, while A good management is
necessary to help the organization meet needed commitments (Daft, 2008: 493).

Table-1.1. The Difference Between Leader’s Qualities and Manager’s Qualities

Leaders qualities Managers qualities

Making soul Making mind
Visionary Rational
Passionately Consistently
Creative Persistent
Flexible Solving problem
Inspiring Tough-minded
Innovative Analytical
Courageous Structured
Imaginative Deliberate
Experimental Authoritative
Change the initiates Stabilizing
Power of personal Power of position

Reference: Daft, 2008: 494.

Leadership and management reflect two different sets of skills and qualities
are that frequently overlap within one individual. An individual might have more of

9
than a set of qualities than others, but ideally a manager have to set a balance of both
manager and leader qualities (Daft, 2008: 494). Leaders at the same can be a
manager or both, but good managers every time are a leader. Leadership and
management are related; leaders without management will be weak and cannot be
solve the organizational problems perfectly.

1.5. Gender s Roles in Leadership

Gender has impacts on leadership in many aspects. Whether women and men
lead in a different ways, is still a highly debated issue. However, the major impact of
gender on leadership is that, women usually are presumed to be less worthy and less
competent to hold leadership positions. Leadership style depends on a various
number of factors, where gender difference is one of them. Leaders adapt to
expectations based on people’s categorization of them as female or male (Górska,
2016: 138).

A common stereotype in establishments is those which women are, nurturing,

supportive and skill at achieving good relations with coworkers. The male
counterpart to the stereotype of the relationship-oriented woman is the notion that
men focus more on getting the job done and more directive—or we can say that, men
are task-oriented. Judging from these stereotypes, one may expect that gender also
has impact on leadership, for example, male leaders engage in initiating- structure
behaviors more than women but, female leaders engage in more consideration
behaviors than men (George and Jones, 2012: 359).

An argument suggests that men and women have different behavior as leaders
it is referred to as the structural–cultural model of leader behavior. This model tells
that because women sometimes experience lack of respect, power, they have to
behave in a different way from men so as to be effective leaders. For example,
followers expect different behaviors types from women but not from men. Thus, a
female leader who may act aggressively will be saw or viewed as mean-spirited or
very emotional, whereas a man who is behaving in the same way might be thought of
as confident, passionate or strong. Women are also pressured to have certain gender-
role stereotypes, such as being interpersonally nurturing and oriented more than men.
In essence, women are also required to find a way of leading while making contacts

10
comfortable by showing behavior consistent with gender-role stereotypes. Women
who do this are not necessarily less effective leaders as we discussed above, the
effectiveness of any specific leader behaviors will depend on the situational factors.
So when the situation calls for a leader that emphasizes caring and concern for
followers, women will be showing nurturing behavior and strong interpersonal skills
are showing themselves effective and perhaps will be better leaders than men (Hitt et
al, 2011: 31). Another difference that is discussed in some sources is men have a
tendency to be more autocratic whereas that woman may be slightly more democratic
in making decisions. However, much more work is necessary to be done so as to
understand the dynamics of leadership and age better (Ebert and Griffin, 2013: 229).

There are some studies about gender in leadership styles: A study found that
women try to adopt a more transformational and participative and democratic
leadership style whereas men were observed to adopt more punishment-oriented and
autocratic leadership styles. Some studies also found that the leadership style are
adopted by women proves more to be beneficial for organizational effectiveness,
mainly when integrating the system of motivation, expectation, reward and
enthusiasm among others (Zheng, 2015: 2).

As for other differences in leadership styles, a review that is influential

which are about 162 studies revealed that women revealed a bit more
democratic/participative and a bit less directive/autocratic styles leadership styles
and a bit than did their male counterparts (Patel, 2013: 18). Men were more likely to
exhibit the punishments element of transactional leadership, as well as the laissez-
faire style, but women are more likely to indicate that transformational leadership
and give rewards. Moreover, women are collaborative and cooperative, less
hierarchical, and more willing to increase the self-esteem of others. This finding
shows that women are likely to fare better with easier in way of style in authentic.
According to McKinsey (2009) his study they have found more than two results. He
has tested over 800 business leaders on what styles would be most effectiveness.
They found which types of leadership were most beneficial for corporate
performance. They have found, women used the beneficial styles more than men
sometimes. Those were the types of rewards and expectations, participative and
inspirational decision-making (Patel, 2013: 18).

11
 1.6. Leadership Theories

Leadership is considered as a complicated notion and various numbers of

theories have been used to explain it. These theories are summarized and have
developed over the years and they explore a number of different facets of leadership
behavior and leadership. They also complete each other in many ways and altogether
they help to get an understanding which is comprehensive of what the process of
leadership is about (Armstrong and Taylor, 2014: 642).

The leadership subjects have studied for hundreds of times and include a
number of successions of theories. The earliest theories focus on the behavior,
character of successful leaders and personality. The old theories focus on what
leaders are doing rather than talking about their behavior, needing to have certain
innate traits and qualities (FME, 2015: 4).

The theories of leadership are described below: Behavioral Theories of

Leadership, Trait Approach to Leadership, The Ohio State Studies, The Iowa
Studies, The Managerial Grid, Contingency Theories of Leadership, University of
Michigan Studies, Fiedler’s Contingency Model, House’s Path Goal Theory,
Leadership Continuum Theory, Hersey and Blanchard’s Situational Theory,
Normative Decision Theory (Şimşek, Çelik and Akgemci, 2016: 273).

1.6.1. Trait Approach to Leadership

For more than a century scholars tried to describe the key characteristics that
separate leaders from non-leaders. Trait perspectives also suggest that traits play a
vital role in making differences between non-leaders and leaders, that leader must
have the “right stuff.” The great person-trait approach reflects the trials to adopt traits
that separate leaders from non-leaders too (Schermerhorn et al, 2010: 306).

Trait approaches or trait theories are one of the systematic endeavors that the
study of leadership concept since early 20th century up to late 1940s. It is the only
trait approach that talks about the concept of leadership that it is linked to personal
qualities and it is innate. In spite of that there are lots of weaknesses in the popular
trait theories, they also provide worthy valuable and useful information about the
concepts of leadership and leader which will be proved further important not only
on individual level but also on organizational level. Individuals especially leaders

12
can show their own specific set of traits through various popular questionnaires and
tests which let themselves understand and have awareness about their weaknesses,
strength and status as per the previews of their management and colleagues. In this
way, leaders can assess that how they can strengthen their position in their
organization and where they actually stand in their organizations. Traits theories and
approaches are the benchmarks for the personalities that want to be become a
successful leader (Kanodia and Sacher, 2016: 146).

This theory of leadership, which essentially proposes that the success of a

leader could be attributed only to their physical characteristics and personality
without regard to their manifest behavior in any given situation (Nicholson et al,
2005: 207).

The theory which tries to show specific characteristics (Personality, mentality

and physical) is linked with the success of the leadership. Leadership focuses on
identifying physical, intellectual, emotional and other personal traits of effective
leaders. This approach suggested that a different number of individual qualities of
effective leaders are found. To a large extent, support component test individuals in
the scientific management of personality theory of leadership. In addition to
examining them through staff testing, the characteristics of leaders were examined
through the selection of colleagues and observation of behavior in the group's
attitudes by observers, by screening or classification and by analyzing biographical
data (Gibson et al, 2009: 316).

Approach to personality in leadership is not a cure. It often focuses on leaders

who do not focus on attitudes or followers. The Attitude approach emphasizes that
effective leadership speaks of leaders with specific characteristics. The approach
inherent in the feature approach indicates that institutions will perform better if staff
are assigned specific leadership qualities in certain leadership positions. In other
words, selecting the right people will lead to the development of organizational
performance (Gomez, 2011: 46).

13
 1.6.2. Behavioral Theories of Leadership

In the previous paragraphs you’ve read about whom leaders are. But showing
traits alone are not enough for making a leader successful. They are, however, a
precondition for success. After all it’s difficult to suggest a successful leader that
which lacks most of these qualities truly. Leaders who have the important traits (or
most of them) have to take actions then which motivate people to achieve group or
organizational goals (Williams, 2015: 292). We are going to talk about the four
studies like the Ohio state studies, Iowa studies, university of Michigan studies,
Managerial Grid. The four main behavior studies are summarized in the below.

Table-1.2. Behavioral Theories of Leadership

Styles Behavioral diminution Conclusion

University of Democratic style: Includes,
subordinates, entrust power authority
Lowa
to other and encouraging participation.
Autocratic style: Dictating work
methods, limiting participation and
centralizing decision making.
Laissez-faire style: Give the freedom
to group that makes decisions and
completes work
University of Consideration: Entity considerate of
followers’ feelings and ideas.
Ohio State
Initiating structure: Work relationships
to meet job goals and structuring work.
University of Employee oriented: Emphasizing on
Michigan interpersonal relationships and taking
care of employees’ needed things
Production oriented:
Task aspects of job or emphasized
technical
Managerial Grid Concern for people: Measured leader’s
by discovered for subordinates on a
scale of 1 to 9 (low to high)
Concern for production: Measured
leader’s by discovered for getting job
done on a scale 1 to 9 (low to high)
Democratic style of
leadership was more
effective, although later
studies identified different
consequence or results.
High–high leader (high in
initiating structure, high in
consideration) satisfaction
and fulfilled high
subordinate performance,
but not in all situations.
Employee-oriented leaders
were associated with high
job satisfaction and group
productivity.
Leaders performed best
with a 9, 9 style (high
concern for production and
high concern for people).

Reference: Robbins and Coulter, 2012: 462.

Behavioral theory of leadership is based upon the belief which great leaders
are made and not born mostly. This leadership theory focuses on the actions of

14
leaders, not on mental qualities or internal states, people can learn to become leaders
through teaching and observation (Wagner, 2008: 1).

Behavioral theories of leadership discuss about the behaviors that

differentiate between effective leaders and ineffective leaders. Scientists suggested
that the behavioral theories approach may provide more definitive answers about the
nature of leadership than what the trait theories did. Studies on thousands of
leadership behaviors were reduced into two main aspects: task-oriented and people
oriented behaviors (Robbins et al, 2013: 219).

1.6.2.1 The Iowa Studies

In the 1930s, before the time when behavioral theory became popular, Kurt
Lewin links conducted studies at the university of Iowa that concentrated most on the
leadership style of any manager. Their studies introduced three basic leadership
styles:

1. Autocratic leadership style. The autocratic leader tells employees what to do and
makes decisions, and supervises workers closely (Miner, 2010: 70).

2. Democratic leadership style. The democratic leaders motivate participation in

decisions; does not closely supervise employees and works with employees to
determine what to do (Miner, 2010: 70).

3. Laissez-faire style leader help the group makes their decisions and complete the
work in whatever way they saw it fit (Robbins and coulter, 2012: 462).

The Iowa studies contributed to the behavioral movement and also led to an
era in which it’s behavioral rather than trait research. When there was a great shift in
paradigm from management to leadership, the leadership style of effective managers
was not autocratic anymore, but it was democratic more (Miner, 2010: 70).

Studies conducted by Ronald Lippitt and Ralph K. White under the general
direction of Kurt Lewin at the university of Iowa have a lasting impact. Lewin is
being discovered as the father of the group dynamics and also as an important
cognitive theorist. In the initial studies, a club which was for hobbies of r ten-year-
old boys was formed. Each club was used for all three different styles of

15
authoritarian, laissez-faire and democratic leadership. The authoritarian leader was
too directive and did not allow any participation. This leader wanted to give
individual attention when criticizing and praising, but attempted to be not personal or
friendly rather than openly hostile. The democratic leader encouraged decision
making and group discussion. This leader also tried to be “objective” in giving
criticism or praise and to be one of the groups in spirit. Laissez-faire leader has given
the group full freedom; however, this leader did not give leadership. Unfortunately,
the effects of leadership styles on productivity have been indirectly examined.
Experiments are primarily designed to examine aggressive behavior patterns.
However, an important by-product is the insight that is produced by a group's
productive behavior. For example, researchers have discovered that men exposed to
autocratic leaders react with one of two ways: either obvious or aggressive. Both
were aggressive and indifferent, reacting to the disappointment that the autocratic
leader had caused. The researchers also argue that unregistered groups exhibit too
much aggression when a transition is made in a more liberal leadership atmosphere
or when the autocratic leader leaves the room. The Laissez-faire leadership climate
unfortunately made many aggressive actions from the group (Luthans, 2011: 416).

1.6.2.2. The Ohio State Studies

The Ohio State Studies, initiated in 1945 and continuing till the 1950s,
showed a point of turning in the investigation of leadership behaviors. Despite that
there were early pressure to look simply case studies of successful leadership the
studies of Ohio State have taken a quantitative approach to investigating leadership.
This study was criticized for their lack of theory development, but they were
successful in developing an approach which was multidimensional to leadership.
Central to these studies were two dimensions of leadership behavior: consideration
and initiating structure (Kane, 2014: 10):

1. Consideration: Consideration which refers to leader–subordinate relations and

fellowship
2. Initiating structure: Initiating structure which refers to outlining tasks,
developing goals and setting expectations.

16
 These two factors have been found in a large number of studies that include
many contexts and driving attitudes. The researchers carefully focused on the fact
that the studies show only how leaders perform their leadership functions. The
structure of looking and beginning is very similar to that of the veteran military
commanders, who are worrying and important to the welfare of the soldiers. In
simple terms, Ohio factors are recognition of individual needs, relationships,
considerations, or orientation towards a goal or task (Luthans, 2011: 417).

The two dimensions are different and separate from one another. Definitely
Ohio studies have quality to study leadership. They are the first to emphasize the
importance of human dimensions and tasks in assessing leadership. This two-
dimensional approach has narrowed the gap between the focus on human relations
and the rigorous orientation of the scientific management movement that was then
famous (Luthans, 2011: 417).

1.6.2.3. The Michigan Studies

The Michigan research program revealed two types of leadership behaviors:

production orientation and employee orientation. Production orientation is based on
leadership behaviors that emphasize production and technical aspects as a function.
Of this guiding factor appears as a means of accomplishing the work. Production
orientation parallels the set structure that begins and is found in Ohio studies. The
employee's orientation is the behavior of leaders who approach subordinates with a
great focus on human relations. They appreciate the personality of the worker, care
about the workers as human beings, and give special attention or personal needs.
Employee orientation is the same with a set of behaviors that have been identified in
the Ohio studies (BA, 2016: 73).

1. Employee-oriented Leader

Emphasizing on the relations which are interpersonal; taking a personal interest in

the things employees need and accepting individual differences among all the
members (Hall, 2007: 9).

2. Production-oriented Leader

Person who emphasizes task or technical aspects of the job (Hall, 2007: 9).

17
 1.6.2.4. The Managerial Grid

The Leadership Grid is a way of testing leadership styles and evaluating

them. The general aim of an organization that uses the Grid is to educate its
managers by using organizational development techniques; so they are more
conciderated about production and people for 9.9 styles (Griffin and Moorhead,
2014: 330).

The behavioral dimensions of these earlier leadership studies have provided

the basis for improving a two-dimensional grid for assessing driving styles. This
administrative network used the behavioral dimensions of "attention to production"
(the horizontal part of the grid) and attention to people "(the vertical part of the grid)
and evaluated the leader's use of these behaviors, classifying them on a scale from 1
(low) to 9 (high) The grid includes 81 potential categories in which the leader
behavior pattern may decline, but only five patterns are named, or task management
(9.1 or a major concern for production, low concern for people), poor management
(1.1 or low concern for production, low concern for people), moderate road
management (5.5 or average concern for production), team management (9,9 or a
major concern for production, great concern for people). Rural club management (1.9
or low concern for production, great concern for people). Of these five methods, the
researchers found that managers improved and performed better when using pattern
9.9. Unfortunately, the grid did not provide any answers to the question of what
made the manager a successful leader. Provided a framework for the perception of
the leadership style only. In fact, there is little objective evidence to support that in
all cases, Method 9.9 is more effective. The leading researchers conclude that the
assumption of leadership success involves something more complex than separating
some of the preferred behaviors or leadership traits. They began to consider the
situational effects. Specifically, any leadership methods may be appropriate in
different situations and what if these positions are different? (Robbins and Coulter,
2012: 462). In the below described the managerial grid in figure-1.1. There are five
point have indicated in the below figure like team management at the top,
impoverished management at the low, middle of the road management at the middle
and followed by country club management and authority compliance.

18
 Figure-1.1. The Managerial Grid

Reference: Griffin and Moorhead, 2014: 330.

1.6.3. Contingency Theories of Leadership

Contingency theory that has a great history, it goes back to 1951 and grown
up slowly (Miner, 2005: 232). The subject in early approaches for understanding
leadership was needed to explain about traits or behaviors which successful leaders
had in common. A set of characteristics proved to be elusive and common, however.
Researchers were completely disappointed by the falling of consistent support for
their conclusions and results. As a result, researches began to pay attention most to
what style of leadership have a great impact in a particular situation. Contingency or
National theories examine the fit between the leader and the situation and provide
guidelines for managers to achieve this influential fit. The theorists believe that the
leadership styles are chosen by managers based on leadership situations. Manager
fixes their decision-making. Orientation and motivational approaches are based upon
a unique combination of factors in their situations: types of work, personal
preferences and upper-level management’s influences, characteristics of employees,
and organizational structures (Madah, 2015: 266).

19
 Fiedler was a good response to the research results, those generated by him
and those generated by others. Another differentiation characteristic is that
contingency theory has been made around a measurement process (Miner, 2005:
232). The following sections describe the four most well-known situational theories:

1.6.3.1 Fiedler’s Contingency Model

Fred Fiedler was the one who advanced the first comprehensive contingency
model for leadership. The Fiedler contingency model tells that effective group
performance depends on the right match between the degree to which the situation
gives the leader control and the leader’s style (Robbins and Judge, 2013: 374).

In that theory judged the different situations make or create different style of
leadership needs for managers (Madah, 2015: 266).

Based on Fiedler’s model a situation is prosperous to the leader if the leader

is desired or preferred by the group; if the task is programmed; and if the leader has
power and legitimacy by virtue of their position. The leader that is relations oriented
is effective more in situations between the two extremes. The task oriented leader is
most likely to be influential in situations that are most unfavorable or most favorable
to her or him. Fiedler’s theory and research assumes that instead of improving
adaptable leaders, the leader have to be placed in situations that suits best to them,
and refusing that, situations must be made to suit a leader’s orientation (APSC, 2011:
9).

Fiedler’s contingency model: A model designed to diagnose whether a leader

is relationship oriented or task-oriented or and match leader style to the situation
(Daft, 2011: 8).

Fiedler has identified three situational or contingency dimensions:

1. Leader–member relations are the degree of respect, trust and confidence that
members have them in their leader (Robbins and Judge, 2013: 373).
2. Task structure is the highly structured job, fairly unstructured or between
both of them? The spelling out in detail (favorable) of what is needed of
subordinates that impacts task structure (Madah, 2016: 264).

20
 3. Position power is the influence degree that a leader has over power variables
such as firing, hiring, promotions, discipline and salary increases (Robbins
and Judge, 2013: 373).

The next step in the Fiedler model is to assess the situation according to these
contingency variables. Matching the combination of three contingency variables with
the definitions discussed about them, eight situational variables are created (Bauer,
2014: 29).

When combining three dimensions which are contingency here it yields eight
possible situations that leaders may find themselves (Figure-1.2). The Fiedler model
shows matching an individual’s LPC score and the eight situations so as to obtain
maximum leadership effectiveness. Fiedler founded that relationship oriented
leaders, however, perform better in moderately favorable situations—categories IV,
V, and VI. In recent times, task-oriented leaders perform better in situations very
favorable. But when faced with a category I, II, III, VII, or VIII situation, task-
oriented leaders perform better. Fiedler has reduced these eight situations into only
three. Recently he says that relationship-oriented leaders perform better in situations
that are moderate control. While task-oriented leaders perform best in situations of
low and high control. How should you apply Fiedler’s findings? You may match
leaders—according to their LPC scores—with the kind of situation—according to
leader– member relationships, position power and task structure, —for which they
are best suited. But we should consider that Fiedler views an individual’s leadership
style as fixed. That’s why there are two ways to upgrade leader effectiveness only.
First, The first alternative is changing the situation to be good to the leader by
restructuring tasks or decreasing or increasing the power of leader to control factors
such as promotions, disciplinary actions and salary increases, and the second one is
that you are able to swap the leader to fit the situation—as when a baseball manager
puts a left- or right handed pitcher into the game and depend on the hitter. If a group
situation rates highly unfavorable but is currently led by a relationship-oriented
manager, then the performance of the group could be developed under a manager
that is task-oriented (Robbins and Judge, 2013: 374).

21
 Figure-1.2. Findings From the Fiedler Model

Reference: Robbins and Judge, 2013: 374.

1.6.3.2. Hersey and Blanchard’s Situational Theory

This theory was first announced by Dr. Paul Hersey, a professor and an
author of "The Situational Leader," and Ken Blanchard, author of the best- selling
"One-Minute Manager," among others (Mind, 2014: 2).

The Hersey and Blanchard model of situational is leadership based on the

amount of socio supporting emotion (relationship behavior) and amount of direction
(task behavior) the leaders should provide the level of the maturity and the situations
of the followers (Madah, 2015: 267).

Task behavior deals with the extent to that the leader contacts in spelling out
the responsibilities and duties to a group or individual or group. This behavior
includes telling people what do, when to do it, how to do it, and where to do it
(Madah, 2015: 267).

In task behavior, the leader communicates in one way. But on the other hand
Relationship behavior is the extent to which the leader communicates in two- way or
more than to ways of communications. This behavior includes, facilitating, to

22
supporting and listening employees. Maturity is the willingness and ability of the
person to be responsible for directing his behavior. Employees try to obtain different
degrees of maturity, depending on the specific functions, tasks or goals they are
trying to achieve. To determine the appropriate driving style to use in a given
situation, the leader must first determine his / her maturity levels in relation to the
specific assignment or task. When employee maturity levels increase, the leader must
begin to reduce the amount of task behavior and increase the behavior of the
relationship until his followers reach the desired maturity levels (Madah, 2015: 267).
When maturity levels are rated, the manager can identify appropriate driving styles:
news, participation, sales and authorization.

A “selling” style (S2) is best for low-to-moderate follower being ready (R2).
This style shows both support and task direction for people that are not able but
trying to take task responsibility; it involves integrating a directive approach with
explanation and motivations so as to maintain enthusiasm.

A “telling” style (S1) is counted as the best style for low follower readiness
(R1). The direction explained by this style tells about the roles for people that are not
able and also not willing to take responsibility themselves; it cancels any insecurity
about the task that should be done.

A “participating” style (S3) is counted as the best style for moderate-to-high

follower readiness (R3). Employee in this style are able but not willing , it also
requires a supportive behavior so as to enhance their motivation; through allowing
followers to share in decision making, this style helps in increasing the desire to do a
task.

A “delegating” style (S4) is best for high readiness (R4). This style render
little in terms of support and direction for the task which is at hand; it helps able and
willing followers to be able to take responsibility for what is necessary to be done
(Schermerhorn et al, 2010: 315). Are described in the figure-1.3.

23
 Figure-1.3. Hersey and Blanchard’s Situational Theory

Reference: Schermerhorn et al, 2010: 316.

1.6.3.3 House’s Path Goal Theory

Another well-known approach that talks about the situational contingencies is

the one which was developed by Robert House based on the other’s earlier work
(Kessler, 2013: 151). House’s path-goal view of leadership has its roots in expecting
the model of motivation. The term “path-goal” can be used because of its focus on
how a leader influences on subordinates’ perceptions of both work goals and
personal goals, and the links or paths, found between these two sets of goals
(Schermerhorn et al, 2010: 313).

The theory of contingency is based on the theory of impulse expectation

which relates to several leadership styles for specific situations and employee
situational situations (Mcshane and Glinow, 2010: 365).

24
 The theory of "goal path" states that influential leaders make sure that
employees who perform their duties receive more valuable rewards than those who
perform poorly. Effective leaders provide the support, information and other
resources needed to assist staff in completing their tasks. In other words, the goal-
oriented theory has improved the leadership of the servants. Commanders do not
show leadership as a center of authority. Instead, they are supervisors, trainers and
facilitators. Leaders are committed to understanding the needs of employees and to
making their work easier and easier. Leaders ask servants, "How can I help you?"
Rather than expecting the staff to serve them (Mcshane and Glinow, 2010: 365).

This theory puts shade on how the subordinates are influenced by the leader
in terms of performance and satisfaction. The importance of the leader in reinforcing
the followers should include clarification of the performance goals. Path-goal theory
classifies four several leadership styles (Karamustafa, 2016: 25):

1. Supportive Leadership: Considers the needs and desires of the subordinates. It is

easy to communicate with, equal to everyone and it also behaves friendly

2. Directive Leadership: Introduces the expectations from the followers, then it

guides them with technical information.

3. Participative Leadership: The ideas and opinions of the followers are taken into
consideration seriously.

4. Achievement Oriented Leadership: Targets which are challenging are set and the
followers are shown full trust in obtaining the targets. Full performance is expected
from them.

1.6.3.4. Normative Decision Theory

Normative decision process theory comes in two versions the first one is
Vroom and Yetton 1973; and second one is Vroom and Jago 1988 (Miner, 2005: 73).

There are four major decision procedures in this model, analyzing how the
leader’s behavior influences the quality of the decision (increases in line with the
participation of the subordinates), and acceptance of the decision (commitment of

25
decision-making followers), subordinates or followers satisfaction with the decision
making and the development or upgrading of participant skills (Yukl, 2010: 140).

Four main decision processes are described in the below (Yukl, 2010: 140):

1. Autocratic decision: The manager is the only person who makes decision; the
others do not have impact or involvement in this situation
2. Consultation: Other people’s opinions are taken into consideration but the last
decision goes back to the manager
3. Joint decision: The decision is taken together with the participation of the
others, and the influence of the parties on the decision is equal.
4. Delegation: The manager authorizes the group or the individual in the
decision making process. The managers also define the limits.

1.7. Leadership Styles

The term "leadership" in organizations that refer to the methods used by older
leaders in their daily contact with their staff? It includes many dimensions, such as
values, elements, criteria, issues or rules that are observed in the work environment
and have an impact on staff, emotions, performance and behavior (Girma, 2016: 36).
Leaders can be defined as group members that exercise the impact over the Group
(Hartel et al, 2005: 320).

Leadership is considered as an activity which has influence on the people

who want to reach the success point in an organization. Leadership is the ability of a
leader to take control, influencing, leading the feelings behaviors or thoughts of
others to reach the goals that are set (Chandra and Priyono, 2016: 132).

Today’s organizations need successful leaders who have impact and are able
to understand the complexities of the rapidly developing global environment. If the
task is well structured and there is a good relationship between the employees and
the leader, then effectiveness will be more on the part of the employees (Wamy and
Swamy, 2014: 57).

Leadership style is an important part which helps any organization to succeed

due to its impacts on the employees’ performance. In a constantly changing
economic, technological environment, and social leadership is a vital assign of

26
management nowadays which before was not like this. Whereas leaders and
managers are concerned with getting resources together, organizing all the
developing strategies and controlling the task activities for gaining agreed objective
results; leadership performs the affecting function of management (Aunga and
Masare, 2017: 42). There are three styles or types of leadership we have chosen that
and separated lassies faire leadership a part. We are going to know these leaderships,
transactional leadership, transformational leadership and lassies faire leadership in
addition to their diminutions.

1.7.1. Transactional Leadership

Transactional leadership is formed based on the basis of the exchanges that

exist between followers and leaders. Transactional leaders try to motivate their
followers with rewards and prizes in an exchanged based relationship (Asiimwe et al,
2016: 75). Transactional leadership includes leader-follower exchanges needed for
achieving routine performance that followers and leaders agree upon them.
Transactional leadership is like most of the leadership approaches mentioned earlier
(Schermerhorn et al, 2011: 324).

Transaction leadership relies more on "deals" between followers and leaders

who engage in their followers to achieve specific performance or standards
objectives. The transaction leader may first show the relationship between reward
and performance and then exchange it for a necessary response that motivates
subordinates to help improve performance. Lead transactions in organizations play
the role of exchange between subordinates and managers. The method of driving
transactions is understood to be an exchange of objectives and rewards between
management and employees. Bass and Avolio explained that transaction leaders
encourage subordinates by using emergency bonuses and implementing corrective
rules and procedures (Wamy and Swamy, 2014: 58).

Leadership transactions, also known as administrative leadership, which

focus on the role of supervision, organization and team performance; this kind of
leadership is that the leader increases the commitment of his followers with rewards
and penalties. Unlike transformational leadership, leaders who use a transactional
approach do not try to change the future. They try to keep things as they are. These

27
leaders focus on the work of followers to find deviations and mistakes. This type of
leadership is effective in emergencies and crises, as well as when projects are
attempted in a specific way (James and Ogbonna, 2013: 358).

James MacGregor Burns (1978) explained the idea of transactional

leadership. He studied political managers in the United States, and suggested that
leadership can be announced in two different ways, transactional or transformational
leadership, he thought that they were opposites of each other. Transactional leaders
have an exchange relationship with their subordinates. This exchange may be
psychological, political, or financial and money will be exchanged for promises for
votes, productivity, praise for loyalty, but regardless of the exchange the relationship
between leader and followers that lasts no longer than does the exchange (Tafvelin,
2013: 11). This style starts with the idea that every team member is willing to do
what their leaders say when they get a job. The transaction usually involves an
organization that pays team members for effort and convenience. The leader has the
right to punish his team members if he does not obey. The emerging minimalist
working relationships (between managers or leaders and staff) are based on this
salary processing effort (Amanchukwu et al, 2015: 10). Transactional leadership is
sometime described as a cost-benefit exchange of subordinates and leaders.
Transaction or change involves something valuable between what his follower wants
to do with her/his services and what the leader has or controls (Yukl and Van Fleet
1992: 176). Transactional leadership requires that leaders communicate their goals
and objectives in order to organize tasks and activities in collaboration with her/his
employees to ensure that broader organizational goals are met (Bass 1990: 341).

In contrast transactional leadership is characterized as a contract or exchange

process between subordinates and leaders. The transactional leader sets expectations
for certain followers and prizes for followers' performance (Jung and Avolio, 2000:
951).

In this sense, the process of that leader clarifies the objectives to be achieved
and clearly indicates that successful achievement of these objectives will mean prizes
and that punishment for non-compliance with the objectives is necessary (Rodrigues
and Ferreira, 2015: 495).

28
 1.7.1.1. Dimensions of Transactional Leadership

1.7.1.1.1. Contingent Reward

Good performance of employees are rewarded, success is recorded (Michael,

2007: 6). Contingent Reward is a contract exchange of rewards for accomplishments,
recognizes effort and promises rewards for best performance (Bass, 1990: 22).

These prizes are linked to employee performance. If employees are making

effort, they are noticed by prizes. The rewards which an employee gain or earn on the
accomplishment of a target is contingent reward. The leader communicates to
followers (workers) that what have too done to receive the rewards they judge
(Chaudhry and Javed, 2012: 259).

1.7.1.1.2. Active Management by Exception

Look for differences from rules or norms, correct behavior (Michael, 2007:
6). Management by exception (active): Times and calls for deviations from standards
and rules, take corrective action (Bass, 1990: 22).

They become aware of divergences from regulations and rules, and if there is
it takes the action for correction. If there are deviations from the regulations and
rules, expectation and corrective actions are made. The leader follows the followers
to work on the mission and does not intervene as long as it is not attained at an
appropriate time and cost. Transactional leadership refers primarily to leaders or
bosses who use social behavior change to provide maximum or full benefit at low
cost. Leaders are motivated to fulfill their duties to show their responsibilities, to
know their goals, needs, so that their rewards may be earned (Chaudhry and Javed,
2012: 259).

1.7.1.1.3. Passive Management by Exception

Corrects the performance for the employees only where standards are not met
(Michael, 2007: 6). Management by Exception (passive): Intervenes only if standards
are not met (Bass, 1990: 22). Management-by-Exception Leaders with "passive"
behavior do not intervene until the problems are serious. Exemption Management
Leader (passive) expects to act until errors are brought to attention (Jones and Rudd,
2007: 524).

29
 1.7.2. Transformational Leadership

Transformational leaders were first identified by Burns (1978) as leaders who

served a purpose above short-term goals and focused on higher-level internal needs.
Transformational leadership is motivating followers to implement common views.
These leaders are role models for followers who develop confidence in them because
of their commitment to reaching the vision (Mckee, 2013: 22).

Leadership transformation addresses the morality of followers in order to

raise awareness of mobilize and ethical issues their energy and resources to improve
their institutions (Yukl, 2010: 262).

Transformational leadership is a type of leadership that draws on different

competencies and methodologies to an organization and thus creates different
benefits for the organization. A transformative leader-driven executive is integral and
delivers clear corporate goals to subordinates or followers. Transformational is
known that helping the followers in every time and when they working at the
motivation and shows the directions to their followers to obtaining the goals of the
establishments, so that style is so important in the organizations for improving the
employees and their skills (Zomorodian et al, 2016: 62).

Transformational leaders are a help for followers to look at old issues from a
new perspective. They encourage their subordinates to raise higher levels than usual.
Transformational leaders inspire subordinates to think more of their own goals and
interests and to focus on national, larger team, organizational, and global goals. By
providing future perspectives, such leaders will assume that this perspective is their
goal and influence their followers so that they will make a high effort to achieve it
(Jandagh et al, 2009: 357).

Transformational leadership is open to creative and innovation and includes

radical changes in the establishment. Transformational leaders see themselves as
motivate people and change agents. Unlike the transactional leaders who make
transactions, they use their power by rewarding their employees and giving them
status and money, transformational leaders direct leads them to vision or dream and
inspire their followers (Celik et al, 2016: 187).

30
 Transformational leadership is defined as an effective strategy for managing
the changing environment that modern organizations face. Transformational
leadership has been promoted as a set of desirable behaviors that create challenges
for followers, but at the same time it is accepted that this type of leadership brings
increased demands on the skills of the managers (Bass, 1990: 21).

Transformational leaders encourage subordinates to see problems differently

and to understand their weaknesses and strengths. Transformational leaders pay
necessary attention to their subordinates as individuals; develop self-sufficiency and
self-worth of subordinates. Transformational leaders are often viewed as "mentors"
to their subordinates (Mäkitalo, 2017: 32).

Transformational leadership serves as a bridge between leaders and followers

to clearly understand the values, interest, and motivational levels of followers. It
basically helps followers to getting their goals working in the organizational setting
and encourages subordinates to be express, adoptive to new, changes in the
environment and improved practices (Evelyn and Elegwa, 2015: 10).

1.7.2.1. Dimensions of Transformational Leadership

1.7.2.1.1. Charisma (Idealized Influence):

The charisma that underlies the charismatic approach is that until the 1980s
political, social and religious leadership capacities Charisma, In the beginning, the
gift in ancient Greece means "gift"; in the later period "God's taxation from the
Christian Church, such as healing or prophecy Extraordinary behavior in the sense of
a gift from God "(Yukl, 2010: 317).

Charisma is the power that can be earned as a result of the behavior and
characteristics of the leaders, the situation and situation of the followers, and the
changes in the perceptions and perceptions of the followers themselves and their
needs. Power can help keep the leader's followers moving (Gulluce et al, 2016: 264).

Idealized influence Also known as charismatic leadership, this is a

characteristic that describes the extent to which leaders are able of showing
themselves as role models to their followers and show moral, solid and ethical
principles (Lai and Rea, 2011: 3).

31
 1.7.2.1.2. Inspirational Motivation

Transformational leadership is based on a consistent vision, mission, and the

promotion of a set of values to the members. Their vision is so compelling that they
will know what they will want from every situations or interaction. Transformational
leaders guide comrades by giving them a sense of meaning and challenge (Gathungu
et al, 2015: 2). Inspirational motivation is the degree to which a leader has the ability
to be a cheerleader, to speak instead of followers. These leaders demonstrate
enthusiasm; emphasize commitment and optimism to a goal that is shared (Lai and
Rea, 2011: 3).

The leader motivates followers to challenge and exemplify challenges and

become an inspiration to reach an effective goal. Transformational leadership enables
the leader to explain and motivate the implications of the challenges. They are
motivating followers to get the best results. The leader informs followers about
future events and has information about the vision of the organization and the
promised future goals for the targets (Ahmad et al, 2014: 16).

1.7.2.1.3. Intellectual Stimulation

Intellectual stimulation defines leaders who encourage innovation and

creativity by confronting a group's normal views or beliefs. Managers working with
intellectual stimulation to develop problem solving and critical thinking to make the
organization better (Hitt et al, 2011: 306).

Intellectual stimulation is defined as asking an administrator to ask the status

quo and question their followers' intelligence on their own thoughts and ideas,
thereby innovative decision-making and encouraging creative (Cavazotte et al, 2013:
493).

Intellectual stimulation involves the awareness and challenge of followers on

the ability to solve problems and problems. Leaders demand the followers' beliefs
and assumptions and motivate them to be innovative and creative; thus approaching
recent problems in new ways (Evelyn and Elegwa, 2015: 15).

32
 1.7.2.1.4. Individual Consideration

Individual consideration transformational leaders are invested in the

development of their subordinates – they serve also as coaches and mentors, and take
into consideration desires and individual needs within a group (Lai and Rea, 2011:
3). Individual consideration speaks about leaders who act as advisors and coaches to
the associates to reach goals that help both the associates and the organization, that
dimension known as coach to teaching their groupie and followers in the proper time
and proper place and of course helping them to fulfill the skills, employees will be
innovator, they discover the new way in their work because they know that there are
a supportive leader (Hitt et al, 2011: 306).

Individualized Consideration: Leaders act as counselors to their followers and

reward them for innovation and creativity. Followers are treated differently
according to their knowledge and abilities. They have decision-making authority and
always get the necessary support to implement their decisions. Recent research has
also shown that emotionally, exiting, and energetic appealing expressions of
charisma created positive moods in followers (Gathungu et al, 2015: 2).

1.7.3. Laissez-Faire Leadership

Laissez-faire-type leadership is at the other end of autocratic style continuity.

With this style, the leaders are trying to pass judgment on their decision-making
responsibility. The group is loosely structured because the leader does not trust
leadership skills. Decision making under this leadership is carried out by every
person who is willing to accept it or everyone can make a decision at workplace.
Decision making is also very slow and there can be a great deal of “buck passing”
(Go and Odivwri, 2015: 3-7). Frequent absence and the lack of involvement of
critical decision-making are used as a way of driving the subordinator or follower to
self-management (Harper, 2012: 25).

The Laissez-faire leadership style works well with less motive tricks because
there is little control. Managers set goals and employees are free to do what is
appropriate to get these goals. Some managers allow employees to work from home
or on flexible hours as long as goals that can increase employee satisfaction are
reached. This leadership style cannot be helpful to employees who need help from

33
their leaders. For example, a nurse may require more guidance and instruction if she
is not experienced, so she can function better under a democratic leader (Joyce et al,
2016: 157).

Laissez-faire, "let's say", this French phrase tells the leaders who allow people
to work freely when they apply for leadership. Laissez-faire leaders do not allow
their responsibilities to leave and decide in the other work they have not
responsibilities for making decisions, they can give employees the right to do their
jobs and determine deadlines. Laissez-faire leaders always allow their follower the
power to make decisions about her/his work because they do not want to make a
decision and they are laissez, this point will be a lack in organizations (Amanchukwu
et al, 2015: 10).

Laissez-faire leaders cannot offer the incentive and guidance to their

employees, and the lack of such incentive makes employees feel that there are no
consequences for performance. It can also conflict about the responsibilities and
roles of subordinates; no one has to communicate these repeatedly and clearly
(Mäkitalo, 2017: 35). Laissez-faire is also known as free rein style of leadership. In
this type, it gives full independence to subordinates for leading operations. This style
includes complete freedom for group or individual decision with no or minimal
involvement of the leader (Marume and Jaricha, 2016: 75).

Laissez faire leadership is effective and appropriate if the school or its

members are filled with professionals. I mean, the workers are very experienced,
dedicated, talented and proud of their work. Laissez faire leadership will lead to a
negative blackout when members are insecure, uneducated, not motivated. Laissez
faire leadership is placed in a leadership style line beyond democratic leadership in
the other hand for making decisions there are no difference between democratic style
and laissez faire style. However, leaders who use a laissez faire style take a "let-it-
ride" approach. The leader selects to have little or no interaction with the followers.
Then he abdicates responsibility, gives no feedback, delays decision, and makes little
effort to satisfy follower needs (Kayode et al, 2014: 476). Laissez-faire leadership is
much less effective than transactional leadership or transformational leadership in
almost all organizations (Jelley and Mackinnon, 2016: 5).

34
 1.7.4. Comparison Between Transactional and Transformational

According to Bensimon, transactional leadership sees the relationship

between followers and leaders as two-way change and mutual influence process.
Leaders gain strength through their positions and personalities, but authorities are
limited by the expectations of their followers. As a transformational leader,
Bensimon presents a one-way view of the relationship between followers and
leaders. Bensimon noted that the leaders have launched associations to increase
subordinates to new levels of motivation and morality. Transactional leadership
creates a managerial image, while transformational leadership evokes images of
extraordinary individuals (Cherry, 2007: 3).

As also in the 1990 Bass, discovered the difference between the transactional
leadership with dimension and transformational leadership with dimension.
According to Bums (1978), transactional leaders recognize what their subordinates
want and are committed to helping them achieve what they want in support.
Essentially, leaders transactional approach voters with promises to exchange jobs for
votes. At the same time transformational leaders increase the awareness of followers
about how to achieve results and how to reach these outcomes through their own
self-interests (Bass, 1997: 21). As well as according to Nikezic the difference
between transactional and transformational leadership in the below table-1.3, are
briefly introduced.

Table-1.3. The Difference Between Transactional and Transformational

Transactional Transformational

1. Leadership status quo. 1. Leadership of changes.

2. Followers obtain organizational goals 2. Motivating subordinates in process of

through the process of punishing and obtaining the tasks through establishing a
rewarding. values, ideals, common vision and moral.

3. Organizational culture is not changed. 3. Change of organizational culture.

4. Followers are motivating by appeals to 4. Followers are motivating by group or

their own interests that make in staff interests that coexist with the
organization. individual interests of group members.

Reference: Nikezić et al, 2012: 290.

35
 SECOND SECTION
CONCEPT OF DECISION MAKING

To solve of many problems in everyday life’s decisions may be made from

more than one alternative, often contradictory it is necessary to make a selection
based on characteristics, criteria, on the other hand for solving the problems have to
making decision. In this section the definition of decision making, the important and
the place of decision making in organization, decision making process, steps and
models of decision making are identified.

2.1. Concept of Decision Making

The word is derived from the Latin word (Decidere) which means cut. The
decision therefore involves cutting off the alternatives between those that he
described and those that he does not describe. The decision is a kind of choice of
desired alternatives. Decision-making and problem solving are key elements of
management leadership. As a leader you will make decisions that are not limited to
yourself, but to the morale and well-being of others. Some decisions are simple
decisions that have little impact on others. Other decisions are often more complex
and may have a significant impact on many people. Thus, the ability to make sound
decisions in a timely manner separates the successful and the unsuccessful manager
(Madah, 2015: 333: Şimşek and Çelik, 2017: 343).

It is defined as, the process of selecting a course of action for treating with a
problem or an opportunity (Schermerhorn et al, 2011: 206). “Decision making is just
the starting of things. When someone making a decision, they are really diving into
situations they didn’t know that they will face these things when they make the
decision (Barry and Halfmann, 2016: 50).

Decision making sometime represents the core processes in solving more ill-
structured problems and complex. It has critical prevention in more complex
problems such as decision making, diagnosis, design, negotiation, control, command
and situation assessment (Jonassen, 2012: 342). Decision as a duty to a course of
movement instead of simply a selection from among alternatives (Nickols, 2015: 6).

Decision-making as both an individual and a management process in

organizational settings has a history and has been accepted by a huge range of

36
academic disciplines, including cognitive psychology, economics and management
(Bofinger et al, 2015: 8). Making a decision involves following the idea of adopting
a philosophy in management, the proper behavior in the workplace, a series of
principles that are called moral decisions, and that any manager should consider three
moral elements in his decision. Construction process: moral recognition, moral
assessment, action and moral intent (Negulescu, 2014: 112).

Making a decision or Decisions expectation can only be reasonable and not

rational. Decision makings are a standard and integral operation of choosing such
solution that would have affective. From the point of view of management sciences,
in decision-making two basic approaches can be distinguished. First, activities
accomplished in a specific reality or descriptive, involving the reproduction of
processes (Raczkowski, 2016: 27). And it is called normative (or pre-descriptive),
which determines fixed and universal action plans. Decision-making is the process of
choosing and identifying from possible solutions for a problem according to needs
and situation. For example, decision making in the dealer auction area can show how
a service will be presented, which requester receives a contract, how the contractor
fulfills its obligations, or how the contractor can show whether he is paying large or
small bills (Al-Tarawneh, 2012: 3).

Decision-making is the mechanism of choice at every step of problem solving

(Fema, 2005: 22). Successful decision-making involves making the right choices to
get your goals. By making the best choice to be successful in your life. However,
making important and meaningful decisions is a difficult task, and some people try to
avoid this altogether - but remember that you should not make a choice on an option
that is itself a decision! No one can make the right decision every time, but by
improving your decision-making skills, you can increase your success rate (UOS,
2016: 1).

Decision making processes increase when a human being has two or more
alternative courses of action but they can’t make all of the decisions. Decision
making is thus selecting between alternatives. However, alternatives have also their
attributes and we must consider them before it is possible to analyze human decision
making as a whole (Mätäsniemi, 2008: 81). The decision seems to be a single event
because it expresses an end, and in this way it can mislead the individual. However,

37
the decision maker only expresses the result when a decision is made. For this
reason, it is necessary to analyze this process well, concentrating on the process that
takes place until the stage of decision making (Kiral, 2015: 75).

Some definitions of decision making are as follows: Decision making is the

process of choosing one of the available alternatives to act. Decision making is one
of the most important functions of human nature. Decision-making is the process of
choosing between alternatives to get the most appropriate outcome after learning
about alternatives. Managers conduct management activities by conducting decision-
making for many different events every day. The concept of management can be
defined as follows; Management is the creation and maintenance of an environment
in which people can work together in order to achieve predetermined goals in an
effective and efficient manner. It is the process of bringing together, coordinating
and using various factors to achieve effective and efficient management,
organizational goals or targets. In the vast majority of the definitions of management,
it seems that actions for the realization of a pre-determined purpose are defined as
'management' action. Persons perform various actions in order to achieve a main
action and / or purpose that they have already identified. From the very basic point
of view, at the very least, there is the existence of a goal-setting situation on the basis
of management action. This is the first decision that is made right now. That is,
management action is carried out in conjunction with decision-making action. It is
not possible to talk about an unintended management action. In many cases, it may
also be necessary to set sub-objectives or targets to achieve this goal. And again,
each sub-goal and goal is determined by a decision making action (Tekin and
Ehtiyar, 2010: 3).

The literature in this regard is quite extensive and at the same time, very
different. The concept of decision making has an important place in psychology,
social psychology, sociology, economics, business economics, psychiatry, politics
and some other sciences. Nevertheless, the importance of this concept is different in
every scientific discipline. We will deal with economic aspects, not political, and
other aspects, but only economic aspects.

38
 2.2. The Importance of Decision Making in Organizations

Decision-making is an important process of organizational effectiveness and

has a close relationship with all traditional management functions. As an
organizational process, decision-making is individual behavior that has an impact on
organizational goals. Organizations as a system build themselves by making
decisions. Every decision taken helps and leads to new decisions. Quality of decision
making is essential to the success of any organization or company. The ability of
organizations to make good decisions is particularly important in the face of
enhanced global competition, greater uncertainty about exposure to more competitors
and more markets than this (Mykkänen, 2010: 23).

The decision that emerges in the form of choice and select and which is a
result is undoubtedly the product of intellectual effort and work. This intellectual
product is the key to goodness. Because the success rate, which is related to the
decision, depends on the degree of hit. The decision maker has to do with the process
as a process. Managers are the people responsible for ensuring that an enterprise can
achieve its objectives effectively and efficiently by implementing management
functions. Managers are also interested in more strategic work involving the overall
top level of the business, as well as on the operational basis starting at lower level of
the hierarchy and even the reason of existence (Peker and Aytürk, 2002: 59).

Decision-making requires careful thought. However, there is more than one

type of thinking. Where there is a single "right" solution, only a solution-oriented
skepticism is needed; new ideas should be adopted in a situation that is expected to
produce a creative way of thinking that brings out ideas out of the known solutions.
The best decisions are the best informed decisions. It is intentional to think deeply
about the available options and the various consequences before making a decision.
Such a decision requires the ability to think rich (Çürük, 2007: 3).

Decisions taken in organizations are very diverse. Areas, reception situations,

many decisions can be made according to their qualities. Every situation and
situation is the best the types of decisions that the solution will take are listed as
below, there are some points describes the decisions in organizations, and what time
is should make the decisions (Sağir, 2006: 13):

39
1. According to the source of management and information used; sensation, event,
experience, decisions based on research, customs, and customs.

2. According to time; short, medium, long-term decisions.

3. According to their scope and importance; for the whole time, and for long
technical decisions that will affect a part of the organization briefly.

4. According to the number of sons; person, and group decisions.

5. According to the organization's position; command (line) and the decisions of the
establishment and hill, middle and lower level management decisions.

6. According to the lagging function; personnel, accounting etc. Decisions like.

7. According to their connections and relations, at the first level (baseline) or

independent decisions, second level (secondary) or dependent decisions.

8. According to the degree of uncertainty in getting the result expected from the
black; the uncertainty level is determined by routine decisions of low quality
decisions with a high degree of uncertainty.

9. Depending on the degree of authority of the practitioner or the persons concerned,

decisions, central decisions, or top-down decisions, decisions up.

10. According to the number of black votes of the members who brought the decision
organ, vote decisions taken by the union, decisions taken by the majority of the
votes.

Some writers' management is basically a decision-making process. They are

explicitly described. Do not even decide the management of the heart and other
people. There are also people who see it as an axis. Decision making, any
management and all the other members of the management process the success is
bound to decide. Selecting the most appropriate one from the relevant paths to solve
a problem. Another in other words, to solve a series of sub-problems together with
the basic problems of the organization and repeat this process regularly and
intermittently (Semerci, 2000: 192).

40
 2.3. Types of Decision Making

Such situations are not very unusual. In all organizational types, managers
and leaders face different kinds of problems and decisions when doing their jobs or
tasks. Depending on the nature of the problem and the opportunity, managers and
leaders can use one of two different types of decisions, programmed decisions and
unscheduled decisions. We described these two types below.

2.3.1. Programmed Decisions

Programmed decisions endeavor to be well structured, routine and repetitive,

occurring on a regular basis. They are always made at lower levels in the
organization, has short-term results and is based on the readily information available.
Because the organization is often decided on, a decision-making process can be
developed that provides information to the organization or decision-maker who
needs to make a choice after one or more pieces of information have been provided.
The decision rule ensures that there is a definite method for achieving a solution and
that it does not need to be treated as something new every time it occurs. Simple
formulas can often be applied to situations. Examples of programmed decisions
include the calculation of raw material or office material orders and holiday fees,
sickness payment or surplus payment (Brien and Flanagan, 2012: 148).

Programmed Decision, make using standard rules, quantitative methods or

procedures. To make a programmatic decision, the decision maker uses a
performance program that is a standard behavioral program that organizational
members regularly monitor when encountering a particular problem or opportunity
(Ada and Ghaffarzadeh, 2015: 148).

Programmer Decision: A recurring decision can be dealt with through a

routine approach. Since the opportunity and problem are organized, the leader does
not have to bear the trouble and costs resulting from the decision-making process.
The "development of alternatives" phase in the decision-making process either does
not exist or does not receive much attention. why? Because once the problem is
identified, the solution is often self-evident or at least to a few familiar alternatives
that have proven successful in the past (Rubens and Colter, 2012: 178).

41
 The decisions programmed are repetitive and routine, and the organization
usually develops specific ways to deal with them. For this type of routine recurring
decision, standard ranking decisions are usually made in accordance with the
applicable management guidelines (Karaman and Ghaffarzadeh, 2014: 126). This is
to the extent that a specific procedure has been developed to deal with it so that there
is no need to address it each time differently. Examples of programmed decisions
may be: price decision for customer resolution, investment decision, employee salary
decision (Masoud, 2015: 21).

2.3.2. Non-Programmed Decision

Non-programmed Decisions this type if decision deals with unusual or

exceptional situations. They are decisions made in response to novel problems and
opportunities (Odinioha and Chukwuma, 2013: 81). None programmed decisions
have important consequences for the organization. Many none programmed
decisions involve strategic planning, because uncertainty is great and decisions are
complex (Armesh, 2012: 6).

Non-programmed decisions always are made in beginning companies, where

except the companies and experience of the leader and manager, also the vision that
they have created and in which direction will the company move towards its
improvement and direction is needed. As well as, such decisions are made when
significant changes are made to the company's survival and risk and problem-solving
conditions. The majority of people spend a lot of time and energy attempting to take
control over what happens to them in this uncertain life. We learned that we must
look for security fake appearance, especially through the elimination of material
goods and resources (Dimkovska, 2016: 45).

Table-2.1. is showed the difference between programmed and non-

programmed decisions, and based on seven points or criteria. Programmed decisions
are structured, low levels, Routine and repetitive, readily available, clear, specific,
short, procedures, rules, policies at the same time non-programmed decisions are
unstructured, high levels, Unusual and new, incomplete or ambiguous, vague, long
judgment and creativity.

42
 Table-2.1. The Difference Between Programmed and Non-Programmed Decisions

Characteristic Programmed Decisions Non-programmed

Decisions
Type of problem Structured Unstructured
Managerial level Low levels High levels

Frequency Routine and repetitive Unusual and new

Information Readily available Incomplete or

ambiguous

Goals specific and Clear Vague

Time frame for Short long
solution
Solution relies on . . . Procedures, rules, policies Judgment
and creativity

Reference: Robbins and Coulter, 2012: 187.

Table-2.1. explains the differences between programmed and unscheduled

decisions. Lower-level executives often rely on programmed decisions (policies,
rules and procedures) because they are faced with familiar and recurrent problems.
As the managers reveal the organizational hierarchy, the problems they encounter are
no longer structured. Why? The reason is that lower-level executives undertake
routine decisions and senior executives can manage with extraordinary or difficult
decisions. Hence, fewer managerial decisions in the world’s reality are fully
scheduled or unscheduled (Robbins and Coulter, 2012: 187).

According to Simon, who makes programmed decision making and non-

programmed decision making, automation of decisions by means of electronic data
processing systems, as a result of declining middle management levels, decentralized
towards centrality the tendency is increasing. Other decisions that you have made at
the discretion of this decision expertise and management science (Yetiş, 2009: 3).

2.4. Decision Making Process and Steps

Managers are invited to make continual decisions to solve problems. They

have to make a decision for any problems and opportunity for achieving
organizational goals. Decision-making and problem-solving, evaluating situations or
problems, making choices, evaluating alternatives, and following the necessary

43
actions. Sometimes the decision making process is very short and the mental thought
is actually instant. Sometimes the decision making process is very short and the
mental thought is essentially momentary. In other cases, the process can be dragged
for weeks or even months. All decision-making processes depend on the right
information that can be reached at the right time and to the right people (Benowitz,
2001: 33).

Decision-making is a process of evaluating and generating alternatives and

choosing options among them. Is it always better to make the best decisions?
Probably not, shooting can lead to perfect solutions to freeze decision makers if no
action is taken. They are afraid of not making the perfect decision they make. When
data and information collection becomes more important than making decisions and
taking action in some cases, it is better to make decisions and risk mistakes and learn
from mistakes when they are made (Armesh, 2011: 2). How can we make a decision
by steps or easily in any situations in organization?

Leaders in all places and at all levels of organizations need to make decisions.
They make choices or multiple choices. For example, top management must decide
on the objectives of their organization, where they will move new markets, or where
to find their production facilities. Lower and middle level managers have to decide
on production schedules, wage hikes, employee discipline and product quality issues.
Making decisions isn’t something that just leaders and managers do; all
organizational members have to make decisions that affect their jobs, take their
responsibility duty and show the loyalty for organization they work for (Robbins and
Coulter, 2012: 178). But our focus in this chapter is on the steps of decision making,
how we can make a decision and there are the many words or have been described
from various words, and we are going to describe the basically and essential steps of
decision making as we have shown them in figure-2.1, which was made by the
researcher, based on their study there are 5 or 7 steps and 6 steps were selected
,because there were the step of identifying and defining the problem so we can say
that, both take the same mean. First one is identify or define the problem or
opportunity, second one is identifying limiting factors, third one is develop
alternative, forth one is choosing an alternative, fifth one is implementation the
decision, and last one is evaluate the decision were explained.

44
 Figure-2.1. The Steps of Decision Making

1. Identify or Define the Problem or

Opportunity

2. Identifying Limiting Factors

3. Develop Alternative

4. Choosing an Alternative

5. Implementation the Decision

6. Evaluate the Decision

2.4.1. Identify or Define the Problem or Opportunity

In any process and analysis of a decision problem, the first step in all of the
studies is define problem or identify the problem. The world’s problems which exist
in reality are always complex, intertwined, and it is not easy to find solutions for
them, even if only for analytical purposes, to identify a clear problem that you can try
to solve. For instance from business, we may wonder whether what we are trying to
do is increasing sales and any problems in organization, on the other hand when we
attempt to solve of course we will achieve a consequences (Rosanas, 2013: 30).
According to Schermerhorn et al, there are three common mistakes in that step first
sometimes teams define the problem very narrowly and broadly. Second sometimes
teams do focus on the symptoms problem instead of causes. Third sometimes teams
may select the wrong problem and treating with it (Schermerhorn et al, 2010: 206).

45
 Every decision begins with a problem, an inconsistency between an existing
and desired situation. Amanda is a sales manager whose reps need new laptops
because they are outdated and inadequate to do their jobs. To simplify this, suppose
that adding memory to older computers is not economical and that the company
buys, not rent. Now we have a problem - there is an inequality between sales
representatives' needs of existing computers (current situation) and those that are
more productive (desired situation). Amanda has a decision. How do administrators
define problems? In the real world, most problems do not come with neon signs that
mark the "problem". When the Representatives began complaining about their
computers, Amanda made it clear that this was something to be done, but there were
a few problems. Managers should also be careful not to confuse problems with the
manifestation of the problem. Is it a 5 percent drop in sales? Or are sales falling as
just a symptom of the real problem, such as poor quality products, high prices or bad
advertising? Also, remember that problem definition is subjective. An administrator
can not consider a problem as a problem by another manager. In addition, it is
possible that an executive who solves the wrong problem perfectly does as badly as a
manager who knows a problem and does nothing. As you can see, to define
effectively (Robbins and Coulter, 2012: 179).

2.4.2. Identifying Limiting Factors

The leader and manager should define the limiting factors of the problem.
Because the restriction will always deteriorate our tasks. Limiting factors are
limitations that exclude certain alternative solutions. Common limitations are time
and literature. If a new product needs to be on the seller's shelf for a month, it will be
removed from the replacement for more than a month. Although the source is the
most common limiting factors that focus on the range of personal, equipment,
facilities and money, time-limited and possible alternatives. In a wholesale case, the
limiting factor is that all approaches or alternatives in stores must contribute to the
total shopping experience. There are some limitation factors like cultural,
geographic, environmental and the political objective in the today’s problem, so we
need preparation our limitation factors for identifying the best choices (Murad, 2017:
21).

46
 2.4.3. Develop Alternative

The problem is usually resolved in no way. The options that the decision-
maker has to make are alternatives. The only alternative that really counts is the best
alternative among those who are seen. But at this stage of the decision-making
process, it is necessary to consider all the ways in which the problem can be
resolved. Once the opportunity or problem has been analyzed and recognized,
decision-makers begin to consider action (Armesh, 2011: 3).

The third step of the decision-making process is the shaping of development

an alternative solution, developing and reviewing of all opportunities to bring one
that is most appropriate and most proper (Dimkovska, 2016: 43). At the same time
this step includes personal traits, skills, innovation and creativity is the stage at which
it has emerged most. According to the current situation and circumstances a list of
the most appropriate alternatives is created. Most to determine alternatives one of the
methods used is the brain storm technique, for developing the alternative more than
one (Demir, 2011: 5).

2.4.4. Choosing Best Alternative

When the manager evaluates all alternatives, he tries to select the best
alternative. In the evaluation phase, some alternatives will come off, but in most
cases they will remain as two or more. How does a school leader decide which
alternative is best? An approach is to choose an applicable, satisfactory and
acceptable alternative for the working group. In most cases, it does not do complex
mathematical analysis because the school administrator uses judgment and intuition
to make decisions about this up-to-date information (Lunenburg, 2010: 6).

Decision-making should ensure that the outcomes or results of alternatives

are as close as possible to the desired goals of the school. For example, if the original
goal is to reduce dropout rates of students as much as possible, the school manager
may choose an alternative to drop out rate, but it can be rather costly. An alternative
that will reduce abandonment rates modestly at low cost. However, if the original
target is to reduce a moderate amount of drop rate and this target is desired more than
before, the second option may be a better choice (Lunenburg, 2010: 60).

47
 2.4.5. Implementation the Decision

After the decision is made, it should to be implemented. This step of the

process is crucial to the success of the decision and is the key to effective decision-
making. The best alternative is not worth it if it’s not implemented correctly. To
successfully implement a decision, managers need to ensure that practitioners fully
understand why they are elected, why they are being implemented, and are fully
committed to their success (Brien and Flanagan, 2012: 151).

Decisions often fail during the implementation phase, because managers do

not understand the logic behind the decision and do not fully understand that they are
stable. For this reason, many establishments are trying to make decisions that go
even further down to ensure that employees feel a sense of ownership in the
decisions they make. Implementing a decision to acquire a smaller business in a
different country requires good conceptual skills and can prove difficult. In addition
to legal and competitive issues, the company is obliged to incorporate the
assimilatory features of the new business into its existing operations (Brien and
Flanagan, 2012: 151).

2.4.6. Evaluate the Decision

No decision process can be completed until the decision is tested with the
facts of the business environment. It is necessary to evaluate the goals of the
problem, how it resolves the problem or turns the problem into benefit. Decision
making process could not be completed by an implementation (Armesh, 2011: 4).

The decision should be evaluated to provide feedback after it has been put
into effect. The evaluation process should take place in all administrative levels. This
step allows administrators to see the outcome of the decision and identify any
adjustments that need to be taken. In almost all cases, some settings will be made to
provide a more favorable result. Assessment and feedback are not one-off activities
and should form part of an ongoing process. As circumstances change, decisions
must be reassessed to ensure that they are most appropriate for the company and
organization. This will also help managers learn to make healthy decisions, taking
into account their past experience (Brien and Flanagan, 2012: 151).

48
 In the final step of the decision-making process, it is necessary to assess the
result or outcome of the decision to look if the problem has been resolved.
If the evaluation reveals that the problem persists, the manager needs to assess what
is wrong. Is the problem defined wrong? Are there errors when evaluating
alternatives? Was the correct alternative chosen, but was it implemented badly or
not? Replies may require you to restart your previous step or even start the whole
process, managers have to evaluate all of the situations for taking attentions to them
and give it to the organization (Robbins and Coulter, 2012: 182).

2.5. Models of Decision Making

Approaches used by decision makers in decision making can be classified into

five models: Classical model, normative model, political model, intuitive or intuition
model and administrative model. Generally, people make decisions and judicial
production five basic models are used. And it needs provide better understandings of
real systems are tools from these models.

2.5.1. Classical Model

Decision making model which is a classical model is based on economic

assumptions. This model emerged in the management literature because managers
are expected to make economically sound decisions and comply with the
organization's best economic interests. This model is considered normative, which
means it defines how a decision maker can make decisions. Guides do not define the
way managers really make decisions until they are provided or the ideal result is
reached for the organization. In the other word there were not describe how
managers make decisions every time as it provides guidelines (Armesh, 2012: 6).

The problems are clearly defined, all possible action alternatives are known
and the results are clear. The best solution gives the best results and outcome. This
model follows and described the five-step decision-making process in recent. It is an
ideal condition of a complete knowledge that the decision maker proceeds step by
step in a logical way. And, besides quantitative decision analysis, computer based
applications also contribute in various ways (Schermerhorn et al, 2010: 213).

49
 The underlying assumptions of this model are as follows the below points
(Murad, 2017: 14):

 The decision maker is working. It is precisely formulated and defined to

achieve a goal that is understood and well known to the problems.

 The decision maker strives for conditions of gathering complete information

and certainty. All potential results and alternatives of each are calculated.

 Criteria for assessing alternatives are introduced. The decision maker chooses
that alternative who is will be the best way for return more economic for
organization.

 Decision makers rationalize and use rationale to know values, define order
preferences, evaluate alternatives, and decide to maximize reaching
organizational goals.

2.5.2. Normative Model

This type of model shows that leaders and managers face some constraints,
problems and deterrents while making decisions. These problems can be
environmental or personal factors such as risk, complexity, uncertainty and time,
limited availability of resources (Verma, 2014: 172):

A. The limited processing of knowledge means that there is a limit or threshold limit
governing whether a person's information can be managed or processed.
B. When deciding, judging strategies like many shortcuts are used.
C. Choosing these solutions or alternatives that will require minimum inputs and
resources, but these solutions are good enough.

It allows the leaders for analyzing the determine and situation the level of
participation. This information is a magnificent example of boiling. The normative
decision making model is evaluated the best recourse for making quantitative
judgments (Verma, 2014: 172).

50
 2.5.3. Political Model

The third decision-making model is useful for making unscheduled or non-

programed decisions when the condition is uncertain, when information is limited,
and when there is disagreement between the managers about what goals to pursue or
what kind of action to follow or take. Many organizational decisions involve many
managers who do not follow different goals, and they need to talk to each other to
share information and reach an agreement. Managers usually attempt to form
coalitions to make complex organizational decisions (Murad, 2017: 16).

A coalition is a civil society songwriter who supports a passive goal.

Establishing a coalition is the process of forming alliances between the
administrators. In other words, a manager who supports a particular alternative, such
as increasing the growth of the company by buying another company, speaks
unofficially to other managers and tries to persuade them to support the decisions. If
the outcomes are not foreseeable, managers can get support without negotiating,
debating and bargaining without a coalition and can make a strong individual or
group decision-making process. The coalition building gives the various managers
the opportunity to contribute to the decision-making process and increase their
loyalty, which is the adopted alternate (Murad, 2017: 16).

The political model closely follows the real environment in which most
managers and decision makers operate. Decisions are more complex and include
many people, information is often uncertain, conflict and disagreement over issues
and solutions are normal. The political model has divided by four basic assumptions
(Murad, 2017: 18-19):

1. Organizations consist of groups with different interests, values and goals.

Administrators do not agree on the problem priorities and cannot understand or share
the goals and interests of other managers.

2. Information is ambiguous and incomplete. The attempted rationality is limited to

the complexity of many problems and personal and organizational constraints.

51
3. Managers have no mental capacity, resources and time to define all the dimensions
of the process and to solve all relevant information. Managers talk to each other and
modify their views to collect informative actions and reduce uncertainty.

4. Managers take care of the debate and discussion to decide on the objectives and
discuss the alternatives. Decisions are the result of negotiations and discussions
between coalition members.

The key dimensions of political, classical models and management are listed.
A study of decision-making procedures in recent years has revealed that classical,
rational procedures are associated with high performance for organizations in a
standardized environment. However, political and administrative decision-making
procedures and perceptions are linked to high performance in an environment that is
unstable when decisions must be made quickly and under difficult conditions (Harris,
1997: 87).

2.5.4. Intuitive or Intuition Model

Intuitive thinkers take a flexible and continuous approach to decision making.

Their existence on a team adds potential for creative innovation and problem solving
(Schermerhorn et al, 2011: 215).

Another aspect of determination with rationality, which is mentioned

previously, is intuition. Determines intuition and represents a quick fear of the state
of decision-making based on previous experiences and encouragement associated
with these experiences, which consisted of conscious thinking. For example, when
you drive a car, any decision to apply brakes is self-evident since it comes almost
automatically for no reason. The same kind of intuition often guides the decisions of
the principal. The decision to discipline a staff member or to obtain a stock
component may be quite obvious to the school principal, who relies on years of
experience (Lunenburg, 2010: 9).

Managers when use this approach, avoid logical and statistical analysis
operations. These leader and managers are "insoluble" decision makers based on
their feelings about a situation. This definition can easily lead someone to believe
that making intuitive decisions is unreasonable or arbitrary. Intuition means decision-

52
making without conscious reasoning or formal analysis, but it is based on years of
administrative experience and practice. These experienced administrative quickly
recognize alternatives without systematic analysis of alternatives and their results.
When he makes the decision with intuition, the manager recognizes the clues in the
situation, the elements that are the same as to the previous situations in which he
lives; the clues help the manager to run the subconscious analysis quickly (Benowitz,
2001: 43).

2.5.5. Administrative Model

The administrative model explains how managers can decide in difficult

situations, such as those characterized by uncertainty, unscheduled decisions and
uncertainty. Many management decisions cannot be programmed to the extent that
they can lend to any degree. Managers cannot make economic rational decisions
when they want (Murad, 2017: 16).

Rationality and complacency: The administrative model of decision-making

depends on the work of Herbert A. Simon. Simon proposed two basic concepts in the
formation of the administrative model: restricted and satisfactory rationality.
Restricted rationalism means that people have limits or limits on how they can be
rational. The organization is in a reasonable state of credibility and managers have
the time and ability to process a limited amount of information to make decisions.
Because managers do not have the time or cognitive ability to process complete
information about complex decisions, they should be satisfied. Satisfaction means
that decision-makers choose the first alternative solution that meets the minimum
standards of decision (Murad, 2017: 16).

Based on this model, decision maker has different motivations, incentives and
requirements, but they try to find shortcuts to find solutions that are acceptable to all
because of time constraints. Here, the decision makers do not focus on improvement,
but rather on satisfaction in other words, selecting an alternative that is higher than
the minimum acceptable value in certain constraints. Are of added importance when
the cost of delaying the decision or seeking more alternatives is high and is expected
to be paid from other alternatives or relatively low alternatives (Verma, 2014: 172)

53
 THIRD SECTION
THE IMPORTANCE OF LEADERSHIP STYLES IN DECISION MAKING
PROCESS: A RESEARCH IN CHARITY ORGANIZATIONS IN IRAQ

In this part the role of leadership styles in decision making process have
described in charity organizations in Iraq, they were international charity
organizations, the questions of questionnaires are distributed on the leaders and
employees. This part included importance and purpose of research, scope of the
research, data collection tool and scales questionnaire design, sampling, limitations
of the study, research hypothesis, model of research, validity and reliability of the
study and research findings.

3.1. Importance and Purpose of Research

In today’s competitive world we need to know the effective topics for better
understanding in the event’s world. The aim of this research is to determine the
importance of leadership styles like transactional leadership, transformational
leadership and lassie faire in decision making. We selected charity organizations
because there are multi-cultures and they are working for humanly and sometimes
voluntarily for human and human rights. Although the difference between the male
and female in those charitable organization in both the topics leadership styles and
decision making and which styles have effect more than others.

3.2. Scope of the Research

We could reach 430 employees from 14 charities organizations; they are

international organizations because of that we have chosen these organizations. Iraq
have more than 50 organizations, and in Erbil they are nearly 30, you have to take
their permissions and we could do that only in Erbil city, because the other cities
have security problems for visiting and we could not reach every charity
organizations in Iraq. Erbil’s organizations like these (International Organization for
Migration (IOM), Turkish Red Crescent (Turk Kizilay), Turkish Cooperation and
Coordination Agency (TIKA, AJANS), Norwegian Refugee Council (NRC),
Médecins Sans Frontières (MSF), Turkiye Diyanet Foundation (TDF), Doctors Aid
Medical Activities (DAMA), Norwegian People Aid (NPA), International Medical
Corps (IMC), Danish Refugee Council (DRC), United Nations (UN), Malteser

54
International (MI), Premiere Urgence - Internationale (PUI), International Rescue
Committee (IRC), Handicap International (HI), Critical Needs Support Foundation
(CNSF), Women for Women International (US), Medecins Du Monde (MDM),
Bihar Relief Organization (BRO), Terre Des Hommes (TDH), Solidarites
International (SI), Save the Children International (SCI), World Health Organization
(WHO), Women Rehabilitation Organization (WRO), World Food Programme
(WFP), Food and Agriculture Organization (FAO), International Relief and
Development (IRD), Un Ponte Per (UPP), War World Child (WWC), Tear Fund
(TF). There are about 1600 employers working, we contacted them through the
internet and telephone.

The population of the investigation consists of 430 employees in 14 charitable

organizations such as International Organization for Migration (IOM), International
Rescue Committee (IRC), Danish Refugee Council (DRC), Norwegian Refugee
council (NRC), Turkiye Diyanet Foundation (TDF), World Food Programme (WFP),
Bihar Relief Organization (BRO), International Medical Corps (IMC), Save the
Children International (SCI), Tear Fund (TF), Médecins Sans Frontières (MSF),
Women Rehabilitation Organization (WRO), Turkish Red Crescent (Turk Kizilay),
Turkish Cooperation and Coordination Agency (TIKA), and Turkiye Diyanet
Foundation (TDF) in Erbil in Iraq.

The majority of the charity organizations surveyed are of European origin.

Neighboring countries, major aid organizations from Turkey are available. Our
research has briefly introduced the benefits of Kizilay, Tika and Diyanet foundation.
Like any other country Turkey has a great role in helping the refugees and
immigrations, Turkey have international charity foundations that are working inside
and outside the country. In the last 5 years nearly 4.000.000 peoples from Syria have
come to Turkey, they have everything that are needed for living in Turkey like
salary, place and health insurance without payment. Turkish charity organizations are
working in every situation. At the same time they are having a great role in Iraq.
Turkish charitable organizations have activity in Iraq like Turkish Red Crescent
(Turk Kizilay) organization, Turkish Cooperation and Coordination Agency
organization TIKA (Ajans), Turkiye Diyanet Foundation (TDF), we have described
blow.

55
 Since its foundation in 1868, the Turkish Red Crescent has undertaken
important duties to provide social solidarity, to contribute to the development of
social welfare, to provide services to poor and needy people, to provide nutrition and
healthcare, to provide services such as blood, disaster, international aid, immigration
and refugee services, first aid, education, youth and mineral water. The Turkish Red
Crescent has intervened in natural and man-made disasters in 78 different countries
over the past 10 years and has extended help to 137 countries since its establishment.
Turkish Red Crescent has signed humanitarian activities in Palestine, Sudan,
Indonesia, Sri Lanka, Kyrgyzstan, Kosovo, Somalia and Pakistan as well as many
enduring refuge studies. The projects in needy countries are concentrated in areas
such as housing, school, community center, places of worship, construction of public
facilities, foundation and support of livelihoods, health, education, social assistance,
agriculture and irrigation.

The Turkish Cooperation and Coordination Agency (TIKA) is an

organization which continues its activities under the Ministry of Foreign Affairs,
which was set up to help countries that have religious racial and cultural similarities
with our country after the disintegration of the USSR. As a charity organization,
TIKA started its activities on 27 January 1992. On 25 December 1991 the Soviet
Socialist Republics (Soviet Union) was dispersed, and many states gained
independence in Central Asia and the Caucasus. Turkey, which gained independence
in those days, was the first country to recognize the Turkish Republic. Kazakhstan,
Turkmenistan, Uzbekistan, Azerbaijan and Kyrgyzstan, Tika have a shared language,
a common memory and a common culture, which has helped strengthen the bilateral
and regional relations. Turkey and the Central Asian countries, have behaved like
the different states of one nation; our foreign policy has shown a versatile and
proactive understanding of the region. Tika helped over 37 countries since
establishment; they are working on these subjects, economic, technology, education
and commercial.

Diyanet Foundation of Turkey on 13 March 1975 is established. The aim of

this charity organization are to service in Social peace and harmony in society,
religious, social and cultural all activities that cares about the Religious, this
foundation of Turkey for the development, dominate the mission of the earth

56
goodness, our country and on all seven continents move with the vision of becoming
a foundation in the service of humanity. In the last dominated of that foundation and
it has a program are described below, The Department of Religious Affairs in
cooperation with Turkey as part of the 2017 Victims Program conducted by the
Religious Foundation of 257 thousand 789 shares of sacrificial home 260 provincial
and district center, while abroad, said he delivered to the needy cut 450 of the 139
countries.

In the evaluation of the Data and finding the calculated values SPSS 23.0
statistical Software package is used. The participant’s significance level between
Leadership styles like transactional style, transformational style and lassie faire style
with decision making by Pearson Correlation Analysis. The participant’s leadership
styles impact on decision making was tested by Linear Regression Analysis, gender
and material state was tested by T-test in the decision making, age, education,
experience was tested by one-way Anova.

3.3. Data Collection Tool and Scales

In the research survey methods were used to collect Data. The survey consists
of two parts. The first part of the questionnaire includes demographic questions. The
second part contains questions aimed to determine and measure leadership styles and
decision making. Are divided into two part the first one is questionnaire design and
the second one is sampling.

3.3.1. Questionnaire Design

To measure leadership styles, a scale developed in (1995) by Bernard M.

Bass and Bruce J. Avolio, has been used multifactor leadership questionnaire leader
from (MLQ 5x-Short). This scale is composed of 45 items but we have used 36
questions (12 questions transactional leadership and 20 questions transformational
leadership and 4 questions lassie faire) for the research because we just used
transactional leadership, transformational leadership and lassie faire and we exclude
other questions. We have taken this scale from Rhona G. Reiss, December (2000), a
comparison of leadership styles of occupational therapy education program directors
and clinic administrators, University of Texas, doctorate theses. Adhering to the

57
originals of the survey; 5-point Likert method (From 1: Not at all option until option
5: Frequently, if) was used.

To measure General Decision-making Style is assessed with the GDMS test

(Scott & Bruce 1995). The 25 items were presented to respondents in a five-step
Likert scale ranging from strongly disagree to strongly agree. Decision making style:
The development and assessment of a new measure”, Educational and Psychological
Measurement, based on that study there is a relationship between decision-making
style and both action control and self-esteem, but not with educative ability. We have
taken this scale from David P. Spicer and Eugene Sadler-Smith, (2005). Research
notes an examination of the general decision making style questionnaire in two UK
samples.

3.3.2. Sampling

Based on this study in 1974 by Victor H. Vroom and Arthur G. Jago, the title
was Leadership and Decision Making, the results of that study was positive
generally, the results of this research were supportive of the concept of intrapersonal
variance in leadership style and helped to identify some of the situational factors
influencing leaders' choices of decision processes.

Based on this study in 2013, by Al-Omari A, the title was the relationship
between leadership styles and decision making styles among public schools
principals, the result were the relationship between decision making styles and
leadership styles are fascinating. Based on this study in 2017, by Abood S. and
Thabet M, the title is Impact of Leadership Styles on Decision Making Styles among
nurses' managerial levels according to this study concluded that leadership styles
have significant correlation and impact on decision making style.

Based on this study in 2012, by Reid W, the title was the relationship between
perceived leadership styles and decision-making styles, the results were like that
person product correlation (r) and t-tests identified positive, significant relationships
between a subordinate's avoidant decision-making style and their leader’s passive
avoidant leadership style. This study identified a significant negative relationship
between idealized influence and avoidant decision-making. We could not reach the
studies exactly like our study but we selected some nearly studies from our study.

58
 3.4. Limitations of the Study

As any Study, the researcher encountered some limitations while carrying out
the study and among them includes: As with all researches have some limitations and
shortcomings that might be enumerated. The most important limitation of this project
is that the research study was conducted in nearly 14 sectors in difference country,
their duties same and are did on many number of employees and leaders. Another
limitation of this research is that the data has been collected with self-report
technique this may be subject to self-serving bias. To control this, in-depth interview
method may be used to complete and deepen the results of this project in the future.
Time constraints did not give or allow researchers to do interviews in this present
project. A confrontation of the discovered relationships with a dialogue of the
employees should be of great significance to deepen our results. It would therefore
be interesting to do at the same time a qualitative study, even exploratory, for better
understanding the influence of employees’ perceptions of leadership styles on
decision making. Another limitation of our study was the lack of a concept between
leadership styles with decision making and there were not the studies same our study.

3.5. Research Hypothesis and Model

To investigate the effects of leadership styles on decision making, the

following hypotheses has been proposed: For this purpose, the following theoretical
model has been established.

H1: There is a positive significant between transactional leadership and decision

making.
H2: There is a positive significant between transformational leadership and decision
making.
H3: There is a positive significant between laissez-faire leadership and decision
making.
H4: Decision making exhibits significant difference according to gender.
H5: Decision making exhibits significant difference according to marital status.
H6: Decision making exhibits significant difference according to age.
H7: Decision making exhibits significant difference according to education level.
H8: Decision making exhibits significant difference according to experience.

59
 Transactional Leadership

Transformational
Leadership Decision making

Lassies Faire Leadership

Figure-3.1. Theoretical Model

3.6. Validity and Reliability of the Study

Validity is the measure of a test or scale which is to be measured, and it may

be classified as structural validity content validity, discriminant validity and
convergent validity (Westen and Rosenthal, 2003: 608). In this study, content
validity is used to conduct the validity of the questionnaire. Content validity is the
evaluation and assessment of the scales of an expert person. Here, the expert
supervises that if the arranged scale-out statements cover the purpose or not
(Yaghmale, 2009: 25).

The reliability concept is important and it helps the researcher to determine

the consistency of the questions in a questionnaire or a test with each other and how
the scale used reflects the interest problem (Tavakol and Dennick, 2011: 53). The
Cronbach Alpha (α) coefficients which are the results of the reliability analysis of the
scales used in the questionnaire are shown in the table below.

Table-3.1. Results of the Reliability Analysis of the Used Scales

Scales Number of Questions Cronbach Alpha (α)

Transactional 12 0.724
Transformational 20 0.796
Lassies faire 4 0.813
Decision making 25 0.796

60
 Reliability coefficients of the scales used in the research are shown in Table-
3.1. Since the minimum level of reliability in social science research is considered to
be 70%, it can be said that the level of reliability provided in research is high.

3.7. Research Findings

As a result of the research; Demographic Characteristics of the Participants,

standard division and Means of transactional leadership, standard division and Means
of transformational leadership, standard division and Means of lassies faire
leadership, standard division and Means of decision making, correlation and
regression Analysis, T-Test Analysis and ANOVA Analysis results are explained
below.

3.7.1. Demographic Characteristics of the Participants

This section is forming the first part of the questionnaire, which is targeted
firstly to collect general information about to the respondents. This general
information contains some specific questions related to as gender, marital status, age,
years of experience and education of the respondent.

-Gender

In general, the total number of employees of the charity organizations, who

participated in our research, was 430. The number of the males are 239 or 55.6% and
the number of the females are 191 or 44.4% demonstrate of research sample
according to gender and shown in Table-3.2.

Table-3.2. Gender

Gender Frequency Percent

Male 239 55.6
Female 191 44.4
Total 430 100.0

-Material state

The distribution of research sample according to marital status from single is

190 with a percentage 44.2% and 240 the married with 55.8% in the Table-3.3.

61
 Table-3.3. Marital Status

Material States Frequency Percent

Single 190 44.2
Married 240 55.8
Total 430 100.0

-Age

The majority of participants with concern to age from above 18 years with 11
person or 2.6%, 20-24 years 89 person or 19.3%, 25-29 years 142 person or 33%, 30-
34 years 103 person or 24%, 35 to 39 years 71 person or 16.5% and above 40 years
20 person or 4.7% have found in that study and shown in the table Table-3.4.

Table-3.4. Age

Ages Frequency Percent

above 18 11 2.6
20-24 83 19.3
25-29 142 33.0
30-34 103 24.0
35-39 71 16.5
above 40 20 4.7
Total 430 100.0

-Education

Table-3.5. That table the majority of participants with the education from
university with a 229 person or 53.3 %, pre-license are 68 person or 15.8%, master
are 60 person or 14%, high school are 48 person or 11.2%, doctorate are 14 person or
3.3%, primary are 11 person or 2.6% have found.

Table-3.5. Education

Stages Frequency Percent

Primary 11 2.6
High school 48 11.2
Pre-license 68 15.8
Univercity 229 53.3
Master 60 14.0
Doctorate 14 3.3
Total 430 100.0

62
 -Expireance

Table-3.6. Indicates the percentage of the participants work experience in the

charity organizations. The majority of participants who have experience from 3 to 5
years with a frequencies of 34.7 % moreover, the second large set of experience from
6 to 10 years with a percentage of 27.7 %, Who have less than one 1 year 12 person
or 2.8%, 1-2 are 104 person or 24.2%, 11-15 41 are person or 9.5%, 16-20 are 3
person or 0.7% and above the 40 years are 2 person its 0.5% have found.

Table-3.6. Expireance

Years of expireance Frequency Percent

Less than 1 year 12 2.8
1-2 104 24.2
3-5 149 34.7
6-10 119 27.7
11-15 41 9.5
16-20 3 0.7
above 20 2 0.5
Total 430 100.0

3.7.2. Standard Division and Means of Transactional Leadership

Table-3.7. Shows the mean value and standard deviation of the participation
factor. The table shows that the respondents agree with the statements that reflecting
participation. The overall mean score value of transactional is 4.22 and standard
deviation of transactional is 0.98 indicates that the majority of the respondents
choose agree and strongly agree on the statements they were asked to evaluate
participation. And the overall shows in the table-3.7.

Table-3.7. Mean and Standard Deviation of Transactional Leadership

Transactional Leadership Means S. Division

1. I provide others with assistance in exchange for their efforts. 4.42 0.83
2. I discuss in specific terms who is responsible for achieving
performance targets. 4.26 0.78
3. I make clear what one can expect to receive when performance
goals are achieved. 4.21 0.95
4. I express satisfaction when others meet expectations. 4.14 1.04
5. I focus attention on irregularities, mistakes, exceptions and
deviations from standards. 3.46 1.70
6. I concentrate my full attention on dealing with mistakes, 4.46 0.76

63
complaints and failures.
7. I keep track of all mistakes. 3.86 1.63
8. I direct my attention toward failures to meet standards. 4.33 0.75
9. I fail to interfere until problems become serious. 4.33 0.82
10. I wait for things to go wrong before taking action. 4.29 0.82
11. I show that I am a firm believer in ‘If it ain’t broke, don’t fix it 4.36 0.84
12. I demonstrate that problems must become chronic before I take
action. 4.59 0.82
Total 4.22 0.98

3.7.3. Standard Division and Means of Transformational Leadership

Table-3.8. Shows the mean value and standard deviation of the participation
factor. The table shows that the respondents agree with the statements that are
reflecting participation.

Table-3.8. Mean and Standard Deviation of Transformational Leadership

Transformational Leadership Means S. Division

1. I instill pride in others for being associated with me. 4.42 0.80
2. I go beyond self-interest for the good of the group. 4.27 0.86
3. I act in ways that build others’ respect for me. 4.51 0.77
4. I display a sense of power and confidence. 4.36 0.81
5. I talk about my most important values and beliefs. 4.63 0.77
6. I specify the importance of having a strong sense of purpose. 4.39 0.72
7. I consider the moral and ethical consequences of decisions. 4.22 1.04
8. I emphasize the importance of having a collective sense of
mission. 4.61 0.86
9. I talk optimistically about the future. 4.13 0.91
10. I talk enthusiastically about what needs to be accomplished. 4.45 0.87
11. I articulate a compelling vision of the future. 4.33 0.76
12. I express confidence that goals will be achieved. 4.55 0.86
13. I re-examine critical assumptions to question whether they are
appropriate. 4.24 0.78
14. I seek differing perspectives when solving problems. 4.47 0.78
15. I get others to look at problems from many different angles. 4.24 1.28
16. I suggest new ways of looking at how to complete
assignments. 4.16 1.44
17. I spend time teaching and coaching. 4.25 0.79
18. I treat others as individuals rather than just as a member of a
group. 4.11 0.91
19. I consider an individual as having different needs, abilities and
aspirations from others. 4.54 0.79
20. I help others to develop their strengths 4.44 0.79
Total 4.37 0.85

64
 The overall mean score value of transformational leadership is 4.37 and
standard deviation of transformational is 0.85 indicates that the majority of the
respondents select strongly agree and agree on the statements they were asked to
evaluate participation. And the overall shows in the Table-3.8.

3.7.4. Standard Division and Means of Lassies Faire Leadership

Table-3.9. Shows the mean value and standard deviation of the participation
factor. This table indicates that the respondents agree with the statements that
reflecting participation. The overall Mean Score value of lassies faire leadership is
3.08 and standard deviation of lassies faire leadership is 1.59 indicates that the
majority of the respondents select rarely or sometimes on the statements they were
asked to evaluate participation. And the overall shows in the Table-3.9.

Table-3.9. Mean and Standard Deviation of Lassies Faire Leadership

Lassies faire Leadership Means S. Division

1. I avoid getting involved when important issues arise. 3.16 1.65
2. I am absent when needed. 3.24 1.57
3. I avoid making decisions. 3.10 1.60
4. I delay responding to urgent questions. 2.82 1.55
Total 3.08 1.59

3.7.5. Standard Division and Means of Decision Making

Table-3.10. Shows the mean value and standard deviation of the participation
factor. The overall mean score value of decision making is 3.08 and standard
deviation of decision making is 1.59 indicates that the majority of the respondents
select strongly agree and agree on the statements they were asked to evaluate
participation. And the overall shows in the Table-3.10.

Table-3.10. Mean and Standard Deviation of Decision Making

Decision Making Means S. Division

1. When I make decisions, I tend to rely on my intuition. 3.66 1.03
2. I rarely make important decisions without consulting other
people. 3.55 1.26
3. When I make a decision, it is more important for me to feel the
decision is right than to have a rational reason for it. 3.85 1.08
4. I double-check my information sources to be sure I have the right
facts before making decisions. 4.44 0.74

65
5. I use the advice of other people in making my important
decisions. 3.83 0.91
6. I put off making decisions because thinking about them makes me
uneasy. 2.61 1.05
7. I make decisions in a logical and systematic way. 4.57 0.64
8. When making decisions I do what feels natural at the moment. 4.11 0.82
9. I generally make snap decisions. 3.94 0.99
10. I like to have someone steer me in the right direction when I am
faced with important decisions. 3.88 1.03
11. My decision making requires careful thought. 4.25 0.85
12. When making a decision, I trust my inner feelings and reactions. 4.34 0.83
13. When making a decision, I consider various options in terms of a
specified goal. 4.21 0.98
14. I avoid making important decisions until the pressure is on. 3.57 1.37
15. I often make impulsive decisions. 3.51 1.36
16. When making decisions, I rely upon my instincts. 4.02 0.98
17. I generally make decisions that feel right to me. 3.73 1.17
18. I often need the assistance of other people when making
important decisions. 3.81 1.05
19. I postpone decision making whenever possible. 3.67 1.43
20. I often make decisions on the spur of the moment. 3.30 1.34
21. I often put off making important decisions. 2.72 1.42
22. If I have the support of others, it is easier for me to make
important decisions. 4.11 0.96
23. I generally make important decisions at the last minute. 2.46 1.29
24. I make quick decisions. 2.51 1.34
25. I usually have a rational basis for making decisions. 3.69 1.34
Total 3.69 1.09

3.7.6. Correlation Analysis Results

Correlation are indicates the relationships between transactional,

transformational and lassies faire leadership with decision making in the below.

Table-3.11. Correlation Analysis Between Leadership Styles and Decision Making

Scales Transactional Transformational Lassies F Decision

Leadership Leadership Leadership Making
Transactional 1
Leadership
Transformational 0.634** 1
Leadership
Lassies faire 0.271** 0.264** 1
Leadership
Decision 0.588** 0.183** 0.050 1
Making
**. Correlation is significant at the 0.01 level (2-tailed).

66
 According to the results of the performed correlation analysis, as it can be
seen from Table-3.11. There is a moderate positive and statistically significant
correlation between the participant’s transactional leadership and decision making
(r= 0,588; p= 0,01). Hypothesis 1 is confirmed. It can also be seen that between
transformational leadership and decision making (r=0,183; p=0, 01). Hypothesis 2 is
confirmed. As also there is a moderate negative and statistically significant
correlation between the participant of lassies faire leadership and decision making
(r= 0,050; p≠ 0, 01). Hypothesis 3 is rejected.

In another word, when the transactional leadership and transformational

leadership increased decision making will be better, but lassies faire leadership has
not role in decision making.

3.7.7. Regression Analysis Results

Regression analysis indicates the effective of two or more topics, in this part
independent variable were indicated as decision making and dependent variables like
transactional leadership, transformational leadership and lassies faire.

The results of regression analysis conducted to determine the level of the

influence of transactional leadership on decision making are summarized in the
Table-3.12.

Table-3.12. Regression Analysis Between Transactional Leadership and Decision

Making

Dependent R2 Adjusted B Std. t p F

variable R2 Error
Transactional 0.588 0.346 1.466 0.149 9.811 0.000 226.405
leadership 0.528 0.035 15.047 0.000

Independent variable is decision making

The table 16 show that the disclosed model is significant (P <0.05).

According to the table, transactional leadership has an effect on decision making
(R2=58.8%), and Adjusted R2 (34.6%). The percentage of the variance explained is
indicated by R2 and the significance level of regression is explained by F. The results
of the regression analysis indicated that the level of transactional leadership may be
explained by the participants’ perceptions of decision making.

67
 The results of regression analysis conducted to determine the level of the
influence of transformational leadership on decision making are summarized in the
Table-3.13.

Table-3.13. Regression Analysis Between Transformational Leadership and Decision

Making

Dependent variable R2 Adjusted B Std. t p F

R2 Error
Transformational 0.183 0.033 3.772 0.157 24.027 0.000 14.783
Leadership 0.162 0.042 3.845 0.000

Independent variable is decision making

Table-3.13. Show that the disclosed model is significant (P <0.05). According

to the table, transformational leadership has an effect on decision making
(R2=18.3%), and Adjusted R2 (3.3%). The percentage of the variance explained is
indicated by R2 and the significance level of regression is explained by F. The results
of the regression analysis indicated that the level of transformational leadership may
be explained by the participants’ perceptions of decision making.

The results of regression analysis conducted to determine the level of the

influence of lassies faire leadership on decision making are summarized in the Table-
3.14.

Table-3.14. Regression Analysis Between Lassies Faire Leadership and Decision

Making

Dependent R2 Adjusted B Std. t p F

variable R2 Error
Lassies faire 0.050 0.002 2.569 0.500 5.142 0.000 1.071
leadership 0.139 0.134 1.035 0.301

Independent variable is decision making

Table-3.14. Show that the disclosed model is significant (P ≥0.05). According

to the table, lassies faire leadership has not an effect on decision making
(R2=0.05%), and Adjusted R2 (0.02%). The percentage of the variance explained is
indicated by R2 and the significance level of regression is explained by F. The results

68
of the regression analysis indicated that the level of lassies faire leadership may be
not explained by the participants’ perceptions of decision making.

In another word the transformational and transactional leadership have an

impact on decision making or have roles in decision making but lassies faire has not
any impact or role in decision making.

3.7.8. Results of the Analysis of Diversity According to Demographic

Characteristics

It is necessary to give information about the statistical methods used in the

analysis on whether the level of decision making of the participants indicated a
meaningful difference according to the demographic characteristics.

The t-test analysis is used to register whether there is a difference between the
two sample groups in terms of averages or not. There are two types of T-tests like
parametric t-test and non-parametric t-test. The t-test is only suitable for examining
differences between two group averages. However, in practice it cans necessary to
compare the average of more than one group. In such cases, the appropriate test that
can be used is the Analysis of Variance (ANOVA) test.

3.7.8.1. T-Test Analysis Results

The t-test is conducted to describe whether there is a significant difference

between the decision making in terms of the gender and marital status of the
respondents. Decision making was tested by explore descriptive statistical (0,05˂
P=0,72) this result indicate the parametric t-test.

Table-3.15. Decision Making According to Gender

Decision making
Mann-Whitney U 22316.500
Wilcoxon W 50996.500

Z -.397
Asymp. Sig. (2-tailed) 0.691

a. Grouping Variable: Gender

69
 As seen in Table-3.15. There is no statistically significant difference between
the decision making (P=0,691>0,05) according to the gender of the respondents who
answered the questionnaire. H4 was rejected.

Table-3.16. Decision Making According to Material State

Decision making
Mann-Whitney U 22581.500
Wilcoxon W 51501.500
Z -0.171
Asymp. Sig. (2-tailed) 0.864
a. Grouping Variable: Material state

As seen in Table-3.16. There is no statistically significant difference between

the decision making (p = 0,866> 0,05) according to the material state of the
respondents who answered the questionnaire. H5 was rejected.

3.7.8.2. ANOVA Analysis Results

ANOVA" analysis is applied to describe whether there is a significant

difference between decision making according to age, level of education and
experience. The results of the ANOVA analysis that is conducted in order to describe
the differences between the decision making in term of age of the employees
participations, have shown in the Table-3.17.

Table-3.17. ANOVA Test Between Decisions Making in Terms of Age Range

Variance Sum of df Mean F Sig.

Source Squares Square
Decision Between 3.388 5 0.678
making Groups
Within 87.833 424 0.207 3.271 0.007
Groups
Total 91.221 429

Table-3.17. Is examined (P= 0.007˂0.05), it can be stated that decision

making have difference significantly according to education. H6 has been accepted
in this context.

70
 The results of the ANOVA analysis that is conducted in order to describe the
differences between the decision making in term of education of the employees
participations, have shown in the Table-3.18.

Table-3.18. ANOVA Test Between Decisions Making in Terms of Education Range

Variance Sum of df Mean F Sig.

Source Squares Square
Between 5.186 5 1.037
Decision Groups
making Within 86.036 424 0.203 5.111 0.000
Groups
Total 91.221 429

Table-3.18. Is examined (P= 0.000˂0.05), it can be stated that decision

making have difference significantly according to Age. H7 has been accepted in this
context.

The results of the ANOVA analysis that is conducted in order to describe the
differences between the decision making in term of experience of the employees
participations, have shown in the Table-3.19.

Table-3.19. ANOVA Test Between Decisions Making in Terms of Experience Range

Variance Sum of df Mean F Sig.

Source Squares Square
Between 0.006 1 0.006
Decision Groups
making Within 91.215 428 0.213 0.029 0.866
Groups
Total 91.221 429

Table-3.19. Is examined (P= 0.866>0.05), it can be stated that decision

making have difference significantly according to experience. H8 has been rejected.

In this section by using the questions of questionnaires we have achieved

some results which indicates the positive and negative based on those places that are
answered. As the same all of the studies in the world there are some hypotheses
which identify the results or the questions as how they have been answered.
Although identify the places where there is difference from others, so we can say that
the most important part in every study include the hypothesis.

71
 In the below Table-3.20, have shown the results of hypothesis of our study.
What is the difference between an individual and a leader? A great point of that
question is the leader’s ability to make decisions which a normal person cannot make
easily, so general leaders have powers to indicate the decision or making decision
makers based on situational organization depend on the steps of decision making and
recognize the environment and motivate the employees.

Table-3.20. Results of the Analysis Related to the Hypothesis

Hypothesis Results
H1: There is a positive significant between transactional leadership and Accepted
decision making.
H2: There is a positive significant between transformational leadership and Accepted
decision making.
H3: There is a positive significant between laissez-faire leadership and Rejected
decision making.
H4: Decision making exhibits significant difference according to gender. Rejected
H5: Decision making exhibits significant difference according to marital Rejected
status.
H6: Decision making exhibits significant difference according to age. Accepted
H7: Decision making exhibits significant difference according to education Accepted
level.
H8: Decision making exhibits significant difference according to experience. Rejected

Hypothesis is propositions explaining an event or phenomenon are called

hypotheses. The scientific method used to see a hypothesis as a scientific hypothesis
must be tested. Scientists generally make scientific hypotheses based on observations
that are not fully explained by current scientific theories. Though hypothesis theory
is used instead of hypothesis theory, scientific hypothesis and scientific theory do
not. A scientific hypothesis has already been accepted and is open to inquiry.
Hypothesis is also a concept that is used in the field of formal logic and is seen as the
predecessor of a proposition.

72
 Table-3.20. Indicated that the positive significant between the transactional
and transformational leadership with decision making , transactional leaders have an
effective on followers because appearing own business or organizations,
transformational leaders have an effective on their followers because of helping the
followers for making decision and show them the ways or steps of decision making,
at the same time the negative significant between laissez faire leadership and
decision making, like every research our research identified the negative
relationships between laissez faire and decision making, because laissez faire leaders
give a Complication freedom for followers to make decisions, they don’t help the
followers to make a decision and show them the ways for making decision. There is
no difference between the male and female when they decide or making a decision,
all of the studies appeared that men are autocratic and women are democratic but it’s
not having effective on decision making. At the same time there is no difference
between married and single, it’s a logically stuff. According to this research there is a
difference between ages when they make a decision. As well as there is a difference
between the educational level when they make a decision, definitely its agreement
when one has a doctorate certificate and on has a high school certificate, they are
making decisions differently. At the last of our hypothesis it indicated that there is no
difference between the experiences, it’s an agreement when one be transactional and
transformational leadership.

Provisional solution to the problem is called the hypothesis. Hypothesis is a

concept that is considered valid and is designed to relate events to the scientific
method and to connect events to an end. The research and observations made to solve
the hypothesis problem are established with the help of the information obtained.
And our hypothesis demonstrates the positive and negative relationship between the
subjects for solving the problems.

73
CONCLUSION AND RECOMMANDATIONS

This study includes three sections the first section is leadership and leadership
styles like transactional, transformational and laissez faire leadership. The second
section is decision making, decision making process, steps and models of decision
making have explained. In the last section the relationship between the transactional,
transformational, laissez faire leadership with decision making in charity
organizations in Iraq explicated. The purpose of this study is to determine the role of
leadership styles like transactional leadership, transformational leadership and lassie
faire in decision making as well as identifying the role of demographic in decision
making. The sample consists of 430 employees from international charity
organization in Iraq. They are working at immigration and refugee for offering and
presenting various and important services to them.

In the problem of Today’s world charity organizations have a big role in the
humanitarian’s topic or human rights on their problems so leadership and decision
making are the most important subjects in the organization, and charity organization
specially. The ability to enhance benefits, have to manage anything or fulfilling
tasks, leaders can solve problems based on the workplace, at the same time leaders
must be creative at work for arranging all the problems, certainly leadership is an
important reason for improving decision making, and helps a decision maker to
achieve Imagination, consulting and analysing for making decision easily.

The results showed that a moderate, positive and significant correlation

between the participants’ transactional leadership and decision making (r= 0,588; P =
0,01). That result indicated the Hypothesis 1 is confirmed and accepted. It can also
be seen that between transformational leadership and decision making (r= 0,183; P =
0,01). Hypothesis 2 is confirmed and accepted. As also there is a moderate negative
and statistically significant correlation between the participant of lassies faire
leadership and decision making (r= 0,050; P ≠ 0,01). Hypothesis 3 is not confirmed
and rejected.

According to results of correlation there are the role of transactional

leadership and transformational leadership in decision making at the same time there
is no relationship between lassies faire leadership and decision making. In the

74
another word when transactional and transformational are increases decision making
will be grow and rise, but if lassies faire leadership increased there are no any
exchange in decision making.

The results of the T-test and ANOVA analyses showed that decision making
does not exhibit the difference significant according to gender (P= 0, 691>0,05).
Hypothesis 4 is not confirmed and rejected. As also there is no difference significant
between the decision making according to marital status (P= 0,864> 0,05).
Hypothesis 5 is not confirmed and rejected. As also there is a difference significant
between the decisions making according to age (P= 0.007˂0.05). Hypothesis 6 is
confirmed and accepted. As also there is a difference significant between the
decisions making according to education (P= 0.000˂0.05). Hypothesis 7 is confirmed
and accepted. And there is a difference significant between the decisions making
according to experience (P= 0.866>0.05). Hypothesis 8 is not confirmed and
rejected. Results also suggest that transactional and transformational leadership are
important to ameliorate and workforce when were controlled, and bring decision
making under control and be awaking from lassies faire.

Like any other country Turkey has a great role in helping the refugees,
Turkey have international charity foundations that are working inside and outside the
country. In the last 5 years nearly 4.000.000 peoples from Syria have come to
Turkey, they have everything that are needed for living in Turkey like salary, place
and health insurance without payment. Turkish charity organizations are working in
every situation. At the same time they are having a great role in Iraq. Turkish
charitable organizations have activity in Iraq like (Turk Kizilay) organization, Tika
(Ajans) organization and Diyanet foundation; they have established some projects
such as school, hospital, social welfare, blood services etc…. .

Transactional leadership, transformational leadership and lassies faire

leadership with the results of the research of examples, which is related to the
decision-making process, our research shows similar results, this research revealed
the different results like laissez faire leadership. The main reasons for this are lacking
in geography, culture and time difference to be important.

75
 Today’s competitive recognizing the important things it will be improving the
organization, and for developing the organization in any situations. There are roles of
leader on decision makers based on this project and leaders can make new decision
or has a role for making new decision also helping for makers to decide for making
decision. In the other point leaders indicate that has roles on decision making with
some reasons so we need indicates those of point when we wants to make new
decisions. The leader should open the problem to them. In parallel, we work together
to produce a solution. He also acts like a participant. It reflects the consensus of the
decision-making group for the solution, so the followers will be ability to make a
decision because their leaders shared and opened the problem, to making a solution
by decisions.

The Laissez-faire leader no effort can be made to guide the activities; does
not make a conscious effort to assess the performance of group members in
organization. So we need overthrow from laissez faire leadership, it postpone
decisions and cannot solve the organizational problems. Transactional has a role in
decision making, because they are obligating at work by punishment and rewarding
so followers must be obligate at work, in that situation followers forced be
participation. Transformational leaderships are helping their followers and encourage
their followers for achieving the organizational goals and making decision.

We hope that in the future research will further relationship between the
leadership styles transactional and transformational specially and decision making
directly, is did not identify lassies faire leadership because all of the literatures are
confirm the failure relationship between lassies faire and decision making. Although
for growing worlds organization should trying the all types of leaders and identifying
which one has a big role in decision at workplace for developing organization
because leadership is the process of affecting others its reveal that leaders capability
to make new decision in opportunity or problems in organization at the same time
help others to make a new decision. As also lassies faire do not ability to influencing
the others for making decisions in all of the establishments.

76
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APPENDIX

Dear participants, this questionnaire was prepared to collect data on the application
section of the graduate thesis entitled "THE IMPORTANCE OF LEADERSHIP STYLES IN
DECISION MAKING PROCESS" in Selçuk University Institute of Social Sciences,
department of business. The research is carried out for a scientific purpose and this purpose
will be achieved through the answers you will give carefully. We thank you for your advices
and we wish you success in your work.

Demographic Questions:

1. Sex: ( ) Male ( ) Female.

2. Age: ( ) Above 18, ( ) 20-24, ( ) 25-29, ( ) 30-34, ( ) 35-39, ( ) Above 40.
3. Education: ( ) Primary, ( ) High School, ( ) Pre-license, ( ) License,( ) Master, ( )
Doctorate.
4. Marital Status: ( ) Married, ( ) Single.
5. Experience: ( ) less than 1 year, ( ) 1-2 years, ( ) 3-5, ( ) 6-10 years, ( ) 11-15
years, ( ) 16-20 years, ( ) Above 21.

LEADERSHIP STYLES
Not at all Once in a while Sometimes Fairly often Frequently, if
not always
1 2 3 4 5

TRANSACTIONAL LEADERSHIP
1. I provide others with assistance in exchange for their efforts. 1 2 3 4 5
2. I discuss in specific terms who is responsible for achieving performance 1 2 3 4 5
targets.
3. I make clear what one can expect to receive when performance goals are 1 2 3 4 5
achieved.
4. I express satisfaction when others meet expectations. 1 2 3 4 5
5. I focus attention on irregularities, mistakes, exceptions and deviations 1 2 3 4 5
from standards.
6. I concentrate my full attention on dealing with mistakes, complaints and 1 2 3 4 5
failures.
7. I keep track of all mistakes. 1 2 3 4 5
8. I direct my attention toward failures to meet standards. 1 2 3 4 5
9. I fail to interfere until problems become serious. 1 2 3 4 5
10. I wait for things to go wrong before taking action. 1 2 3 4 5
11. I show that I am a firm believer in ‘If it ain’t broke, don’t fix it 1 2 3 4 5
12. I demonstrate that problems must become chronic before I take action. 1 2 3 4 5

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 TRANSFORMATIONAL LEADERSHIP
1. I instill pride in others for being associated with me. 1 2 3 4 5
2. I go beyond self-interest for the good of the group. 1 2 3 4 5
3. I act in ways that build others’ respect for me. 1 2 3 4 5
4. I display a sense of power and confidence. 1 2 3 4 5
5. I talk about my most important values and beliefs. 1 2 3 4 5
6. I specify the importance of having a strong sense of purpose. 1 2 3 4 5
7. I consider the moral and ethical consequences of decisions. 1 2 3 4 5
8. I emphasize the importance of having a collective sense of mission. 1 2 3 4 5
9. I talk optimistically about the future. 1 2 3 4 5
10. I talk enthusiastically about what needs to be accomplished. 1 2 3 4 5
11. I articulate a compelling vision of the future. 1 2 3 4 5
12. I express confidence that goals will be achieved. 1 3 4 5
13. I re-examine critical assumptions to question whether they are 1 2 3 4 5
appropriate.
14. I seek differing perspectives when solving problems. 1 2 3 4 5
15. I get others to look at problems from many different angles. 1 2 3 4 5
16. I suggest new ways of looking at how to complete assignments. 1 2 3 4 5
17. I spend time teaching and coaching. 1 2 3 4 5
18. I treat others as individuals rather than just as a member of a group. 1 2 3 4 5
19. I consider an individual as having different needs, abilities and 1 2 3 4 5
aspirations from others.
20. I help others to develop their strengths 1 2 3 4 5

LASSIES FAIRE LEADERSHIP

1. I avoid getting involved when important issues arise. 1 2 3 4 5
2. I am absent when needed. 1 2 3 4 5
3. I avoid making decisions. 1 2 3 4 5
4. I delay responding to urgent questions. 1 2 3 4 5

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 GENERAL DECISION MAKING:
1= Strongly disagree 2= Disagree 3= Rarely 4= Agree 5= Strongly agree
1. When I make decisions, I tend to rely on my intuition. 1 2 3 4 5
2. I rarely make important decisions without consulting other people. 1 2 3 4 5
3. When I make a decision, it is more important for me to feel the decision is 1 2 3 4 5
right than to have a rational reason for it.
4. I double-check my information sources to be sure I have the right facts 1 2 3 4 5
before making decisions.
5. I use the advice of other people in making my important decisions. 1 2 3 4 5
6. I put off making decisions because thinking about them makes me uneasy. 1 2 3 4 5
7. I make decisions in a logical and systematic way. 1 2 3 4 5
8. When making decisions I do what feels natural at the moment. 1 2 3 4 5
9. I generally make snap decisions. 1 2 3 4 5
10. I like to have someone steer me in the right direction when I am faced 1 2 3 4 5
with important decisions.
11. My decision making requires careful thought. 1 2 3 4 5
12. When making a decision, I trust my inner feelings and reactions. 1 2 3 4 5
13. When making a decision, I consider various options in terms of a 1 2 3 4 5
specified goal.
14. I avoid making important decisions until the pressure is on. 1 2 3 4 5
15. I often make impulsive decisions. 1 2 3 4 5
16. When making decisions, I rely upon my instincts. 1 2 3 4 5
17. I generally make decisions that feel right to me. 1 2 3 4 5
18. I often need the assistance of other people when making important 1 2 3 4 5
decisions.
19. I postpone decision making whenever possible. 1 2 3 4 5
20. I often make decisions on the spur of the moment. 1 2 3 4 5
21. I often put off making important decisions. 1 2 3 4 5
22. If I have the support of others, it is easier for me to make important 1 2 3 4 5
decisions.
23. I generally make important decisions at the last minute. 1 2 3 4 5
24. I make quick decisions. 1 2 3 4 5
25. I usually have a rational basis for making decisions. 1 2 3 4 5

Thank you for your participation

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 CURRICULUM VITAE

Name: Mohammed Saber Jami

Birth place: Iraq Erbil
Birth Date: 25/01/1993
E-mail: hamasjami@gmail.com

EDUCATION AND TRAINING

 Gel High School 2009-2010

 Bachelor Degree | 2014-2015 | Business Administration-Cihan University, Erbil
 Turkish certificates’ language (TÖMER-C1) 2016, Konya-Turkey
 Certificate of attendance from international congress on cultural heritage and
tourism (ICCHT-2017)

PUBLICATIONS

 Akgemci, Tahir. Kızıloğlu, Esra and Jami, Mohammed Saber. The Effects of
Job embededness on Job Involvement and Employees Performance: A
Research on Hotel employees in Iraq. International Congress on Cultural
Heritage and Tourism (ICCHT), 19-21May 2017, Konya-Turkey.

 Akgemci, Tahir. Jami, Mohammed Saber and Kızıloğlu, Esra. The Effects of
Personnel Empowerment on Organizational Culture and Employee
Performance: A Research on Iraqi Banks. The International Economics
Research and Congress of Financial Markets (IERFM), 12 - 13 - 14 April
2018, Nevşehir-Turkey.

 Celik, Adnan. Jami, Mohammed Saber and Sezal, Necdet. Time Management
in Organizations: Technological Instruments Size, 4th International
Conference on Sustainable Development (ICSD), 11-15 April 2018, Athens-
Greece.

LANGUAGES

Kurdish Fluently
English Advanced
Turkish Advanced
Arabic Good

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