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Source: Journal of Academic Research in Economics (JARE)

Journal of Academic Research in Economics (JARE)

Location: Romania
Author(s): ABDUL AZIZ HUSSIN, Abdelnaser Omran, ABDULLAH MAHMOOD
Title: LEADERSHIP: HOW TO BE AN EFFECTIVE MANAGER
LEADERSHIP: HOW TO BE AN EFFECTIVE MANAGER
Issue: 3/2009
Citation ABDUL AZIZ HUSSIN, Abdelnaser Omran, ABDULLAH MAHMOOD. "LEADERSHIP: HOW
style: TO BE AN EFFECTIVE MANAGER". Journal of Academic Research in Economics (JARE)
3:335-347.
https://www.ceeol.com/search/article-detail?id=86577
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LEADERSHIP: HOW TO BE
AN EFFECTIVE MANAGER 

ABDELNASER OMRAN
School of Housing, Building and Planning, 11800, Minden,
Universiti Sains Malaysia, Pulau Pinang
Email: naser_elamroni@yahoo.co.uk

ABDULLAH MAHMOOD
School of Housing, Building and Planning, 11800, Minden,
Universiti Sains Malaysia, Pulau Pinang
Email: mabdullah@usm.my

ABDUL AZIZ HUSSIN

School of Housing, Building and Planning, 11800, Minden,
Universiti Sains Malaysia, Pulau Pinang
Email: abdaziz@usm.my

Abstract

The purpose of this paper is to examine effective managers Malaysian leadership. The
objective was investigated on how mangers can have better understanding of leadership and
to use it to their advantage. In addition, this paper also examined to what extant Malaysian
leadership ‘managers reflect the level of their social interaction, preference for gathering
data, preference for decision-making, and style of making decisions. Finally, it identified
several ways on how effective managers could reduce the gap between the difference in
their leader to capitalize the strength of their counterparts in order to enhance organization
performance and at the same time grasp new ideas so that it could benefit both sides. This
study attempted to find out the effect of functional and behavioral competences on the
leadership effectiveness in relation to managers in the construction industry in the Penang
and Butterworth states in Malaysia. The finding has shown that all managers surveyed
basically agreed that IT knowledge and the business knowledge are the most crucial
competences that should be acquired to become an effective manager in the construction
industry. On the other hand intraprofessional knowledge of behavioural competences was
found to be the most important for an effective manager.

Keywords:: Leadership, An effective manager, Construction industry, Malaysia.


Paper presented at the International Conference on Business and Economics (ICBE) held
in Constanta, Romania in November 6-8, 2008

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1. INTRODUCTION

The quality of leadership is one of the most important factor in determining

the success and survival of groups and organizations. Although technologies play
an overriding part under some conditions, effective leadership has often
compensated for lack of equipment and resources. It would be difficult to imagine
a world without leader (Fiedler, F.E., 1987). There can be little doubt that the well
being and success of any nation or organization is heavily dependent on good and
effective leadership. History has shown that great nations and organizations are
often the result of great leadership. Nations or civilizations have been known to fall
or disappear completely due to leadership failure or the lack of a strong leader. The
way in which people co-operate with each other, with the leadership and with the
community, and the extent of their commitment to their organization, depend very
much on the style of management. As such, one must be aware of interacting with
others: in the workplace, with friends, at home; any interaction between two or
more different project mangers contains opportunities for growth and improved
communication. It also may contain opportunities to understand differences in style
of expression and action which may lead to destructive relationships. Evaluation
of the ability of mangers to understand others especially their counterparts who
have different culture and tradition is very important so that it will help them build
good interaction with their counterparts. Realizing the importance of understanding
leadership of others, this study is carried out in order to investigate the differences
between effective manger and ineffective mangers. Since the early pioneering
study by (Carlson, J. G., 1989), researchers have used descriptive methods such as
direct observation, diaries, and interviews to discover what managers do and how
they spend their time. These researches on managerial activities only attempted to
find answers to question such as how much time should managers spend alone or
interacting with different people to accomplish group objectives. In the 80’s,
management researches became very interested in the emotional and symbolic
aspects of management leadership influence. These processes help us to understand
how leaders influence followers to make self-sacrifices and put the need of the
mission or organization above their materialistic self-interests. Nearer to the future,
(Stewart, R., 1982), observation indicates that managers also have unique role
requirements that are specific to a particular type of managerial position in a
particular type of organization. He later formulated a model based on extensive
research using observation, interviews, and diaries to describe different types of
managerial jobs and understanding how managers do them. This model has three
components: demands, constraints and choices. These three components shape the
nature of the job and influence a manager’s behaviour when the following aspect of
situation changes:
 Level of Management
 Size of Organization
 Lateral Interdependence

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 Crisis Situation
This paper, however to examines how functional and behavioural competences
effect the leadership effectiveness.

2. RESEARCH PROBLEM

Effective manager must be able to lead as he is regarded as the leader of

the project team. Without firm leadership, he would not be able to gain respect
from the other consultants. Furthermore, without good leadership qualities, he
would not be able to motivate his team to work towards the common goals of the
project. Strong leadership is therefore a very important criterion for the manager.

3. EFFECTIVE MANAGER

There are managers in every organization. A good and perfect one is the
manager who possesses good qualities. (Barry, T. R., 2000) proposes ten qualities
that make a manager effective; these qualities include, inspiring a shared vision,
good communicating skills, enthusiasm, team building skills, problem solving
skills, empathy, and competence cool under pressure. Ability to delegate tasks
among subordinates. It was further explained that these qualities ought to be
practiced altogether before significant results can be seen. (Gates, B., 2004) also
provided 10 top qualities that managers need to consider. Amongst these qualities
are choosing a field thoughtfully, hiring carefully and having the will to fire lazy
workers ,creating a productive environment, defining success, liking people and
being a good communicator ,developing workers to do their jobs better ,building
moral , taking projects your self , not making the same decision twice and letting
people know whom to please. Gates explanations though differ from Barry’s are all
qualities that are expected to be carried out by managers in order to be effective.

4. LEADERSHIP VERSUS MANAGEMENT

There has been a lot of discussion whether project managers must focus on
leadership or management in their companies. Leadership in itself provides a
picture of authoritative characteristics. This is because, project managers will see
themselves as power holders who will not like to participate in other works.
However a project manager who is as a management based will like to be
participative, this is one of the reasons why identify some tools that will help
differentiate between project managers who are leaders and those who are
managers. One of the tools included intense site reconnaissance. By this project
managers who wish to be effective must be more conscious on the current
developments on the site. This is because any inconvenience, problem or
unexpected circumstances can be responded to accordingly. Another tool is to

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plan/execute. They explain that project managers must not only focus on planning
issues in an organization but also they must focus on effective execution of the
planning activities. This will differentiate them from being leaders or managers.
The third tool, which is managing sub consultants, is one of the difficult ones
amongst them. This is because, sub consultants can sometimes be stubborn and
might delay some processes in project execution. Therefore effective project
managers must know how to deal with them. The last tool proposed by (Brugger,
W.E. & Gerrits, R. J., 2000) is quality control. Controlling the quality of projects is
one of the characteristics that a project manager should exhibit if he/she wants to
be truly effective. (Rimualdo, R., 2003) proposes that knowledge ability to
stimulate interest and delivery of quality results are factors used to distinguish
between leadership and management. He explains further that a project manager
must have the knowledge to show enthusiasm and convey to the staff important
information and also be able to organize the methods that follow systematically.
This will make him/her an effective leader. Further more, an effective leader is
differentiated from management if he/she has the ability to bring out the interest of
people and to deliver quality results. Unearthing the potential in worker would also
make the project manager achieve his/her results. The delivery of quality results is
also another area explained by Rimualdo. This takes into consideration the ability
to plan and carry out a good job; they would trust him and give him credibility.

5. BEHAVIORAL COMPETENCE

Behavioral characteristics are some major ways of looking at the qualities

of effective leadership (Dawooud, A., Mahmood, A., & Abdelnaser, O. , 2005). A
client Guide for ACP project (2002) identifies understanding and emphasizing of
the point, experience and acknowledgement, experience and development,
planning and thinking strategically. Working with trusted people are coordinating
and managing identifying and understanding as well as knowing when to seek
specialist’s advice. It was explained that. Even though the variables mentored
above were more of characteristics of leadership, they related to the behavioral
aspects in one way or the other. (Melymuka, K., 2000) also explains in her
computer world article “Born to lead projects “ that persuasion , generosity, vision ,
flexibility’s and humour are variables that are necessary in shaping the behavior
of leaders . She further explained that managers must be able to persuade their
subordinates, superiors and customers in an effort to achieve objectives. Being
generous was another variable highlighted by Melymuka. Hence, effective
manager must always strive to have a good and better vision for his company. This
will shape his where behaviour as expected. Being flexible is a kind of behaviour
effective managers can not do away with; therefore Melymuka proposes that
managers must practice such behaviour with some sense of humour to provided
desired results. Social scientists have provided insightful literature in the area of
effective leadership that needs to be taken into consideration. (Hofstede, G., 1980)
determines that culture varies along a number of dimensions that posse’s important

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implication for organizational structure and leadership practices. (Wright, H.R.N.

and Aditya, R., 1997) refine and extended the research. They found that
compressive surveys f cross cultural research was needed to look into leadership
issues. However, despite the south in their research, it was concluded that practical
knowledge and advice to assist leader in adapting to cultural constraints were very
important. Looking into Malaysia, there is a colonial heritage, together with more
recent foreign investment by Japanese and Western countries. This has led to
modify traditional patterns of leadership and business management (Sin, T. T.,
1999).

6. THEORATICAL FRAMEWORK

Functional Competences
1. Technical Knowledge
2. Management Knowledge
3. Communications Knowledge
4. IT Knowledge
5. Legal Knowledge Effective Leadership
6. Business Knowledge
Behavioural Competences
1. Social / Vocational Knowledge
2. Intraprofessional Knowledge

Independent Variable Dependent Variable

Figure 1: Conceptual Model of the relationships between functional and behavioural

competences, and the effective leadership.

7. RESEARCH HYPOTHESIS

Based on the research problem and research objectives, the following

hypotheses were developed:
H1: There is a significant relationship between functional competences
and effective leadership.
H1A: There is a significant relationship between Technical knowledge and
effective leadership.
H1B: There is a significant relationship between Management knowledge
and effective leadership.
H1C: There is a significant relationship between Communication
knowledge and effective leadership.

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H1D: There is a significant relationship between IT knowledge and

effective leadership.
H1E: There is a significant relationship between Legal knowledge and
effective leadership.
H1F: There is a significant relationship between Business knowledge and
effective leadership.
H2: There is a significant relationship between Behavioral competences
and effective leadership.
H2A: There is a significant relationship between social/ vocational
knowledge and effective leadership.
H2B: There is a significant relationship between intra-professional
knowledge and effective leadership.

8. METHODOLOGY

Data for this study was obtained through structured questionnaire.

Questionnaires were sent to a total of 50 of construction firms in Penang Island and
Butterworth. Of these 30 were returned and analyzed.

9. RESULTS AND DISCUSSION

9.1. SURVEY RESULTS

The response from the 30 respondents are analyzsed and discussed in the
next few sub-topics. These cover the response on the functional competences i.e.
technical knowledge, managerial knowledge, communication knowledge, IT
knowledge, financial knowledge, business knowledge;and the behavioral
competences i.e. social/vocational knowledge and intraprofessional knowledge.

9.2. FUNCTIONAL COMPETENCE

9.2.1. Technical Knowledge

On the technical knowledge, respondents rated planning and scheduling
skills as ranked 1, followed by basic knowledge in own field and quality control.

Items Mean Std. deviation Rank

Planning and Sheduling 1.4667 .6814 1
Basic Tachnical Knowledge in own field 1.5667 .5040 2
Quality Control 1.7333 .6397 3
Productivity and cost control 1.7333 .6397 3

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Material procurement 1.8333 .9129 4

Technical Writing 2.2667 1.0148 5
Plant Hire and management 2.5667 1.0726 6

Table 1: The Mean and std. deviation of technical knowledge

Plant hire and management and technical writing was rated as the least
important. Theis indicate that in order to be an effective manager in the
construction industry, one must acquire planning and sceduling skills and then
followed by learning basic knowledge in own field and quality control.
9.2.2. Managerial Knowledge
Respondents rated decision-making and time management as the most
important managerial knowledge for an effective manager, followed by strategic
planning.

Items Mean Std. deviation Rank

Decision – Making 1.4000 .8137 1
Time Management 1.5333 .6288 2
Strategic Planning 1.5667 .5040 3
Negotiation 2.1000 1.1552 4
Motivation and Promotion 2.1667 1.1167 5

Table 2: The Mean and std. Deviation of managerial knowledge

However motivation and promotion, and negotiation skills of managerial
knowledge are rated as least important for an effective manager in the construction
industry.
9.2.3. Communication Knowledge
Presentation skills was rated as the most important communication
knowledge for an effective manager, followed by report writing.
Items Mean Std. deviation Rank
Presentation 1.7333 .7849 1
Report writing 1.7667 .7739 2
Public speaking 2.1000 1.0289 3
General and Business Correspondence 2.333 .9223 4

Table 3: The Mean and std. Deviation of communication knowledge

However, general and business correspondence skills was rated as the least
important communication knowledge for an effective manager in the construction
industry.

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9.2.4. IT Knowledge
On the IT knowledge, project management software was rated as the most
important IT knowledge, followed by the operating systems knowledge for an
effective manager.
Items Mean Std. deviation Rank
Project management software 2.2333 .8584 1
Operating systems 2.3667 .6149 2
Information systems and IT tools 2.4000 .8137 3
Database 2.8667 .8193 4
CAD 3.1667 .7466 5
Table 4: The Mean and std. Deviation of IT knowledge
However, CAD was rated as the least important skills, and followed by the
database skills in IT knowledge to be an effective manager.
9.2.5. Financial Knowledge
On the financial knowledge Project Finance Arrangement was rated as the
most important skills, and followed by establishing cash flows in financial
knowledge (Table 5). Reporting systems was rated as the least important financial
knowledge and followed by establishing budgets for an effective manager in the
construction manager.
Items Mean Std. deviation Rank
Project Finance Arrangement 1.4667 .6814 1
Establishing cash flows 1.5667 .5040 2
Establishing budgets 1.7333 .6397 3
Reporting systems 1.7333 .6397 4

Table 5: The Mean and std. Deviation of financial knowledge

9.2.6. Legal Knowledge
In term of the Legal knowledge, general legal background was rated as the
most important legal knowledge, followed by the health and safety issuess while,
drafting contactors and industrail issues were rated as the least important.
Items Mean Std. deviation Rank
General legal background 2.2000 1.0306 1
Health and safety issues 2.2333 .8976 2
Trade unions and public authorities 2.5000 .9002 3
Preparation of claims and litigation 2.5000 .7311 3
Drafting contracts 2.7333 .9444 4
Industrial relations 2.7333 .7397 4

Table 6: The Mean and std. Deviation of legal knowledge

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9.2.7. Business Knowledge

Chairing meetings was rated as the most important business knowledge,
followed by public relations skills for an effective manager (Table 7). Marketing
and sales was rated as the least important business knowledge, followed by the
understanding of organisation for an effective manager in the construction
industry.
Items Mean Std. deviation Rank
Chairing Meetings 1.4667 .5074 1
Public Relations 1.8333 .7915 2
Understanding of organisation 1.9667 .6149 3
Marketing and sales 2.9000 1.0619 4
Table 7: The Mean and std. Deviation of business knowledge

9.3. BEHAVIORAL COMPETENCE

9.3.1. Social/Vocational
Self-confidence and decisiveness were rated asost important
social/vocation skills, followed by commitment and interpersonal skills for an
effective manager. However, flexible was rated as the least important
social/vocational knowledge, followed logical and presentation skills (Table 8).
Items Mean Std. deviation Rank
Self-Confidence 1.4333 .5040 1
Decisive 1.4333 .5040 2
Committed 1.6333 .5561 3
Interpersonal 1.7000 .5350 4
Proactive 1.7667 .5683 5
Puntuality 1.7667 .8172 6
Comprehensive 2.0333 .6149 7
Calmness 2.0667 1.0148 8
Analytical/Investigative 2.0667 .7397 9
Presentation skills 2.2000 .9965 10
Logical 2.2000 .8867 11
Flexible 2.7000 .9523 12

Table 8: The Mean and std. Deviation of social/vocational knowledge

9.3.2. Intraprofessional
Teamwork was rated as the most important intraprofessional skills,
followed by conformity to professional norms for an effective manager. However,
sensitivity to peers was rated as the least important intraprofessional skills,
followed by collegiality for an effective manager in the construction industry.

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Items Mean Std. deviation Rank

Teamwork 1.3667 .5561 1
Conformity to professional norms 2.1000 .7120 2
Public Relations 2.1333 .9371 3
Collegiality 2.6333 .8087 4
Sensitivity to peers 2.6333 .9643 4

Table 9: The Mean and std. Deviation of intraprofessional knowledge

9.4. EFFECT OF BEHAVIORAL AND FUNCTIONAL

COMPETENCE ON LE

Regarding Leadership effectiveness (LE), regression analysis was used to

find out functional and behavioral competences have any significant effect on
leadership effectiveness. Table 10 presents the result of regression analysis.
Variable Beta T-ratio Sig.T
Technical Knowledge .296 1.704 .104
Managerial Knowledge -.301 -1.062 .301
Communication Knowledge .438 1.721 .101
IT Knowledge .513 2.834 .010
Financial Knowledge -.177 -.810 .428
Legal Knowledge -.008 -.041 .968
Business Knowledge .556 3.437 .003
Social/Vocational -.127 -.500 .623
Intraprofessional .899 3.656 .002
R2 = .89.4%
F = 18.783
Sig.F = .000
Table 10: Results of Regression Analysis
Based on the SPSS output, technical knowledge was found to have no
significant effect on the leadership effectiveness at 5% significance level (sig t =
.104). Therefore hypothesis 1A was not substantiated.
Managerial knowledge was found to have no significant effect on the
leadership effectiveness at 5% significance level (sig t = .301). Therefore
hypothesis 1B was not substantiated.
Communication knowledge was found to have no significant effect on the
leadership effectiveness at 5% significance level (sig t = .101). Therefore
hypothesis 1C was not substantiated.

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IT knowledge was found to be significant at 5% significance level (sig =

.010) with a positive beta. This means that IT knowledge has significant positive
effect on the leadership. Therefore hypothesis 1D was substantiated.
Financial knowledge was found to have no significant effect on the
leadership effectiveness at 5% significance level (sig. t = .428). Therefore
hypothesis 1E was not substantiated.
Legal knowledge was found to have no significant effect on the leadership
effectiveness at 5% significance level (sig. t = .968). Therefore hypothesis 1F was
not substantiated.
Business knowledge was found to be significant at 1% significance level
(sig. = .003) with a positive beta. This means that business knowledge has
significant positive effect on the leadership. Therefore hypothesis 1G was
substantiated.
Social/vocational knowledge was found to have no significant effect on the
leadership effectiveness at 5% significance level (sig. t = .623). Therefore
hypothesis 2A was not substantiated.

10. SUMMARY

Hypothesis Accept/Reject
H1: There is a significant relationship between functional Partially
competences and effective leadership. Accepted
H1A: There is a significant relationship between Technical Reject
knowledge and effective leadership.
H1B: There is a significant relationship between Management Reject
knowledge and effective leadership.
H1C: There is a significant relationship between Communication Reject
knowledge and effective leadership.
H1D: There is a significant relationship between IT knowledge and Accept
effective leadership.
H1E: There is a significant relationship between Legal knowledge Reject
and effective leadership.
H1F: There is a significant relationship between Business Accept
knowledge and effective leadership.
H2: There is a significant relationship between Behavioral Partially
competences and effective leadership. accepted
H2A: There is a significant relationship between social/ vocational Reject
knowledge and effective leadership.
H2B: There is a significant relationship between intraprofessional Accept
knowledge and effective leadership.
Table 11: Summary of Hypothesis Testing

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11. CONCLUSION

In the literature it is revealed that an individual’s manager is both inherited

and shaped from the environment however, these genetic personality characteristics
are altered somewhat by life experiences. Individual managers will not have the
same behavior even though they are in the same culture. This difference in manger
had lead to the conflict in decision due to their manager influenced them how to be
effective manager. Leadership is one of the key interpersonal roles managers play
in their organizations. Leadership is considered as an influence process. Followers
let themselves are influenced by a person so long as that person is able to satisfy
their job related needs. The effectiveness of a leader depends on the style of
leadership. An effective leader should choose the style depends on the situation and
demand. (Freitas, A. L., 1992) suggested that people wield power from one status –
in this case the position in organization; concrete resources – the technology and
tools; expertise – the knowledge; self-confidence. This study confirmed that
managers’ with IT and business knowledge, and intraprofessional skills will lead to
effective management; as such managers should put effort to acquire these
competences to discharge their responsibilities and tasks effectively. The research
finding has shown that all managers surveyed basically agreed that IT knowledge
and the business knowledge are the most crucial competences that should be
acquired to become an effective manager in the construction industry. On the other
hand intraprofessional knowledge of behavioural competences was found to be the
most important for an effective manager. These indicate that managers need to
perform under a structural boundary as against to the unstructured, self-
actualization kind of environment. Thus it is important that managers in the
construction industry tries to acquire the relevant IT and business knowledge, and
intraprofessional knowledge to face the challenges in the industry. The challenge is
then for managers to take a serious approach and some in-depth study on their
organizational strength and weakness in the area of human resource and processes
in order for their employees to flourish. Because often than not, as managers, we
prefer to operate in our “comfort zone” and glide along rather than spend time
looking for improvement. A participative leadership style need total commitment
from managers as risk is involved when managers are being asked to trust their
subordinate to have enough common-sense to do the right things and to keep the
managers inform if things goes wrong. Therefore constant communications and
continuous training is the key to employees’ development. On the other hand,
managers may also attract and select staffs that are already inclined to see things
their way. Nevertheless, none of the approaches can be forced on all the people all
the time. The most effective approach is goal–setting, as it is based on the premise
that intentions shape actions. If work goals are specific, and even though it is
difficult, if they are accompanied by feedback on how well one is doing, manager’s
performance is usually enhanced.

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