Congruence of perceptions between bank managers and subordinates about leadership style and performance in Pakistan

Abstract

The purpose of this study was to examine the congruence between managers’ (self) and subordinates’ perceptions about their leadership styles and its impact on performance outcomes. Leadership styles (independent variables) included transformational leadership, transactional leadership and laissez-faire leadership. The outcomes (dependent variables) consisted of effectiveness, extra effort, and satisfaction. The data were collected from 65 banks (65 managers and 225 subordinates) using MLQ 360 (5 X Short) by Bass and Avolio. The managers responded about their self-perceived leadership styles and its relationship with performance outcomes. The subordinates responded about their perceptions of managers’ leadership styles and its impact on their performance outcomes. The data were analyzed using descriptive statistics (ANOVA) and inferential statistics (regression analysis). The results indicated significant differences between managers’ (self) and subordinates’ perceptions about their leadership styles at dimension level. In addition, a significant difference was found between managers and subordinates about the impact of transformational leadership style and laissez-faire leadership style on different outcomes. Certain implications of the study and limitations are also discussed.

Keywords

• leadership style
• performance
• lmx
• banking
• pakistan