A Study of the Leadership Styles of Project Managers and its Impact on Project Performance in Software Industry of Pakistan

TABLE OF CONTENTS

1 INTRODUCTION
1.1 RATIONALE OF THE RESEARCH
1.2 PROBLEM STATEMENT
1.3 OBJECTIVES OF THE STUDY
1.4 SIGNIFICANCE OF THE STUDY
1.5 RESEARCH QUESTIONS
1.6 STRUCTURE OF THESIS

2 LITERATURE REVIEW
2.1 LEADERSHIP AND ITS IMPORTANCE AND REASON OF BEING HOT ISSUE
2.2 LEADERSHIP STYLES OF PROJECT MANAGERS
2.2.1 TRANSFORMATIONAL LEADERSHIP STYLE
2.2.1.1 TRANSFORMATIONAL LEADERSHIP’s CONSTRUCTS AND PROJECT PERFORMANCE
2.2.1.2 SUMMARY OF TRANSFORMATIONAL LEADERSHIP
2.2.2 TRANSACTIONAL LEADERSHIP STYLE
2.2.2.1 THE THREE CONSTRUCTS OF TRANSACTIONAL LEADERSHIP STYLE
2.2.2.2 CONTINGENT REWARD AND PROJECT PERFORMANCE
2.2.2.3 MANAGEMENT BY EXPECTATION ACTIVE AND PROJECT PERFORMANCE
2.2.2.4 MANAGEMENT BY EXPECTATION PASSIVE AND PROJECT PERFORMANCE
2.2.2.5 SUMMARY OF TRANSACTIONAL LEADERSHIP:
2.2.3 LAISSEZ-FAIRE LEADERSHIP STYLE
2.3 PROJECT PERFORMANCE
2.4 RELATIONSHIP AMONG THE THREE LEADERSHIP STYLES AND PROJECT PERFORMANCE
2.4.1 TRANSFORMATIONAL LEADERSHIP AND PROJECT PERFORMANCE
2.4.2 TRANSACTIONAL LEADERSHIP AND PROJECT PERFORMANCE
2.4.3 LAISSEZ-FAIR LEADERSHIP AND PROJECT PERFORMANCE
2.5 SUMMARY

3 METHODOLOGY
3.1 RESEARCH DESIGN AND PROCEDURE USED
3.2 TARGET POPULATION
3.3 SAMPLE DESIGN
3.4 SAMPLING FRAME
3.5 SAMPLE SIZE
3.6 SURVEY ADMINISTRATION
3.6.1 SURVEY TECHNIQUE
3.7 INSTRUMENT FOR DATA COLLECTION
3.7.1 SURVEY QUESTIONNAIRE
3.8 RELIABILITY ANALYSIS
3.9 PURPOSED RESEARCH HYPOTHESIS

4 DATA ANALYSIS
4.1 DEMOGRAPHIC ANALYSIS
4.2 DESCRIPTIVE ANALYSIS
4.2.1 CONSTRUCTS OF TRANSFORMATIONAL LEADERSHIP STYLE
4.2.1.1 CHARISMA
4.2.1.2 INSPIRATION
4.2.1.3 INTELLECTUAL STIMULATION
4.2.1.4 INDIVIDUALIZED CONSIDERATION
4.3 CONSTRUCTS OF TRANSACTIONAL LEADERSHIP STYLE
4.3.1.1 CONTINGENT REWARD
4.3.1.2 MANAGEMENT BY EXPECTATION (ACTIVE)
4.3.1.3 MANAGEMENT BY EXPECTATION (PASSIVE)
4.3.2 LAISSEZ-FAIR OR NO LEADERSHIP
4.3.3 DEPENDENT VARIABLE
4.4 CORRELATION ANALYSIS
4.4.1 RESULTS OF THE CORRELATION ANALYSIS
4.5 RESULTS OF THE HYPOTHESIS FOR TRANSFORMATIONAL LEADERSHIP STYLE
4.6 RESULTS OF THE HYPOTHESIS FOR TRANSACTIONAL LEADERSHIP STYLE TRANSACTIONAL LEADERSHIP STYLE
4.7 RESULTS OF THE HYPOTHESIS FOR LAISSEZ-FAIRE LEADERSHIP STYLE

5 DEVELOPMENT OF REGRESSION MODELS, RESULTS AND DISCUSSION
5.1MULTIPLE LINEAR REGRESSION MODEL FOR THE THREE INDEPENDENT VARIABLES
5.1.1 PARAMETER ESTIMATES FOR THE TRANSFORMATIONAL LEADERSHIP STYLE OF PROJECT MANAGER ON PROJECT PERFORMANCE
5.1.2 PARAMETER ESTIMATES FOR THE TRANSACTIONAL LEADERSHIP AND LAISSEZ-FAIR LEADERSHIP STYLES OF PROJECT MANAGER ON PROJECT PERFORMANCE
5.1.3 ANOVA OF THE FULL LEADERSHIP MODEL
5.1.4 SUMMARY OF THE MODEL
5.2 MULTIPLE LINEAR REGRESSION MODEL FOR SIGNIFICANT INDEPENDENT VARIABLE’S CONSTUCTS
5.2.1 PARAMETER ESTIMATES FOR THE SIGNIFICANT CONSTRUCTS OF TRANSFORMATIONAL LEADERSHIP STYLE OF PROJECT MANAGER ON PROJECT PERFORMANCE
5.2.2 PARAMETER ESTIMATES FOR THE INSIGNIFICANT CONSTRUCTS OF TRANSFORMATIONAL LEADERSHIP STYLE OF PROJECT MANAGER ON PROJECT PERFORMANCE
5.2.3 ANOVA OF THE CONSTRUCTS OF FULL LEADERSHIP MODEL
5.2.4 SUMMARY OF THE MODEL
5.3 PERPOSED HYPOTHESIZED RESEARCH MODEL
5.4 PROVED HYPOTHESIZED RESEARCH MODEL
5.5 REFINED RESEARCH MODELS

6 CONCLUSION AND RECOMMENDATIONS
6.1 CONCLUSIONS OF THE RESEARCH QUESTIONS
6.2 CONCLUSION
6.3 DISCUSSION AND JUSTIFICATION OF THE FINDINGS FROM PREVIOUS STUDIES
6.4 LIMITATIONS OF THE STUDY
6.5 IMPLEMENTATION FOR MANAGERS
6.6 RECOMMENDATIONS FOR FUTURE RESEARCH

7 REFERENCES

8 APPENDIX

LIST OF FIGURES

Figure 1: Purposed Hypothesized Research Model

Figure 2: Proved Hypothesized Research Model

Figure 3: Refined Research Models

LIST OF TABLES

Table 1 : Leadership Skills and Traits (Stogdill, 1974)

Table 2: Dimensions of the Multifactor Leadership Questionnaire (Bass,1990)

Table 3: Data collection items

Table 4: Reliability Analysis of Construct

Table 5: Frequency distribution of charisma

Table 6: Frequency distribution of inspiration

Table 7: Frequency distribution of Intellectual stimulation

Table 8: Frequency distribution of Individualized consideration

Table 9: Frequency distribution of contingent reward

Table 10: Frequency distribution of Management by expectation (active)

Table 11: Frequency distribution of Management by expectation (passive)

Table 12: Frequency distribution of Laissez-fair

Table 13: Frequency distribution of Project performance

Table 14: Correlation Analysis

Table 15: Summarized correlation analysis

Table 16: Results of the hypothesis for transformational leadership style

Table 17: Results of the hypothesis for transactional leadership style

Table 18: Results of the hypothesis for laissez-faire leadership style

Table 19: Transformational parameter Estimates

Table 20: Transactional and Laissez-fair parameters Estimates (Excluded variables)

Table 21: ANOVA Model

Table 22: Model summary

Table 23: Charisma and Inspiration parameter Estimates

Table 24: Intellectual stimulation and individualized Consideration parameter Estimates

Table 25: ANOVA Model

Table 26: Model summary

LIST OF ABBREVIATIONS

Abbildung in dieser Leseprobe nicht enthalten

CHAPTER 1
INTRODUCTION

1 INTRODUCTION

In this modern era organizations are in great need for innovative ideas and procedures to enhance project performance. As they have to act in response to the quickly varying and frequently contradict expectations from clients. At the same time they have to be competitive in the existing cruel economic environment so as a result of it they always remain in search for innovative approaches to upgrade their project performance (Kissi et al., 2009; Koch and Bendixen, 2005). Project management is today’s hot topic. Abundant research work has been done but this field is so dynamic and waste that every direction or view point shows a different prospective and potential of the subject. As learning involves day by day in project so as severity engages in managing these complex and enormous projects. To stay away from the waste of inadequate recourses has increased the everyday jobs upon the shoulders of management. So it is essential to make better and boost up the performance (Qureshi et al., 2009).

The leadership style is a blend of the leader’s behavior which he/she adopts during the completion of the tasks and how he/she creates their relationship with the subordinates and followers, so that he/she can direct and motivate them effectively (Bruno & Lay, in press). Transformational leadership is related with strong and complete personal identification and recognition with the leader, the formation of a common vision of the future, and an affiliation between leaders and followers based on far more than just the simple trade of rewards for fulfillments. Transformational leaders identify the need for alteration, create new visions, assemble commitment to these visions and alter and change the individual followers and even organizations (Bass, 1997 and Bass, 1985). Transformational and transactional leadership is frequently used as opposite with each other. Transactional leadership is consisting of continuous swaps between leader and follower. Followers get positively definite cherished outcomes in the form of wages, prizes and reputation if they follow and practice their leader’s orders and requirements (Bass, 1985 and Burns, 1978). Bolden et al, (2003) define the transactional leadership as having a long-established model of leadership having its old relationship with organization and business context in the underneath procession.

The theories of transactional leadership are all bout inspiration that the relationship of leaders and followers is based on a chain of interactions or contained agreement between leaders and followers. The universal concept is that, when the work and the atmosphere of the subordinates not succeed to supply the essential and needed enthusiasm or inspiration, guidance and contentment, to the leader, in the course of his or her actions, than in such case the imperfections and insufficiency will be balanced through effective leadership. By utilizing transactional leadership the leader make clear the performance criterion, means he/she clearly tells the subordinates that what is actually required from them and what they will get if they follow the instructions (House, Woycke & Fodor, 1988). Both transformational and transactional leaders are active and dynamic leaders. They keenly interfere and get involve and try to avoid problems. When we do research about these two active types of leadership styles, they are most of the time opposite with tremendously inactive laissez-faire leadership (Yammarino & Bass, 1990; Yammarino, Spangler & Bass, 1993). The laissez-faire leader keeps away from making decisions and managerial and ministerial liability and accountabilities. This category of leader is inactive, rather than reactive or proactive. In other words this is tremendously passive type of leadership designates the nonexistence of leadership (Hartog et al, 1997).

In the project location and surroundings the role of the project manager is considered very important. In addition when they utilize some specific leadership behavior that can have its positive impact on innovation and on project outcome and performance (Dulaimi et al. 2005). Most of the time project results have been calculated on the base of its monetary, economical and financial plan and quality of its performance (Salter and Torbett, 2003; Shenhar et al., 1997).In the current research the project performance is therefore taken as multi-dimensional in nature, which includes both types of long and short term measures (Dulaimi et al., 2005; Shenhar et al., 1997). The leadership style leaves an impact on the climate or atmosphere, culture and traditions and way of utilizing skills in an organization, as a result of it affect organizational outcomes like project performance (Litwin and Stringer, 1968 and Ogbonna and Harris, 2000). After studying Kissi et al. (2012a) it is revealed that the leadership role is influential in constructing the real atmosphere which promote and encourage flourishing deliverance of the innovative projects. This is studied in three innovative projects (Kissi et al., 2012a; Oldham and Cummings, 1996; Shalley and Gilson, 2004). In the research under study it has also been explored the impact of Transformational, Transactional and Laissez-fair leadership on project performance. In the perspective of this research the projects could be coming from different clients, means the projects could be unrelated and different in nature. The present study helps in completing the gape through re examining the relative effect of three leadership styles (transformational, transactional, Laissez-fair) of project managers in project performance in software industry of Punjab Pakistan.

1.1 RATIONALE OF THE RESEARCH

According to the results of Leban (2004) research it has been proved that the project managers using a transformational leadership style and emotional intelligence abilities do improve actual project performance. Finding the gap of this study incorporate only transformational leadership style of project manager as in study under consideration all three leadership styles of project manager have been considered to evaluate their effect on project performance to fill the gap.

Turner & Müller (2005) call for “To determine whether the competence, including personality and leadership style, of the project manager have direct effect on project performance. According to the findings of this research the leadership style and competences of the project manager have no effect on project performance; means leader has less effect on performance. The gap of the study is that it does not evaluate the effects of leadership directly on performance. In the study under consideration direct effects of leadership styles have been evaluated to fill the gap.

Chan, A. and Chan, E. (2005) calls for “The results of this study served to provide further support to the versatile application of Bass’s transformational leadership theory in various industries.” This research was conducted in construction industry to predict effectiveness of leadership styles of professional leaders on employee satisfaction and extra effort by employees. The gap of this study was that it does not incorporate laissez-fair leadership style separately and so under current research laissez-fair leadership has been separately incorporated as third independent variable and project performance as dependent variable in software industry of Punjab Pakistan to fill the gap.

Research conducted by Iqbal et al., (2012) showed that the main topic area of this research was Transformational and transactional leadership style. On the base of the finding of this research, it can be concluded that Transformational and transactional leadership Styles are mostly highlighted area, and have got a lot of interest and value from different authors of various countries. This reveals the significance of these styles of leadership. This research paper calls for that the Researchers should investigate and give consideration to highlight additional features and characteristics of these specific leadership styles because of its marvelous implications. The gap of the study is that due to the shortage of time very limited research has been done so further research has been required to highlight its effects.

The research conducted by Kissi et al., (2012) recognized the need for project based organizations to promote transformational leadership behavior among them for improved performance. By utilizing survey method data was collected from 112 project managers about the leadership style of their portfolio managers in UK project base organization. This study calls for to adopt different scales for measuring transformational leadership or better explanatory measures for evaluating its effects on project performance at industry level as this research was done at one but big organizational level. The study under consideration utilize different scales and two more leadership styles along transformational leadership style as explanatory variables to investigate their effect on project performance at project manager level instead of portfolio in software industry of Punjab Pakistan. As the concept of portfolio manager is very rare in Pakistani software industry working environment.

Gumusluoglu and Ilsev (2007) have tested the impact of transformational leadership style on followers' creativity at the individual level and on innovation at the organizational level at R&D personal and manager’s level in Turkish software development companies. The results proved that transformational leadership has significant impact on the dependent variables.

Maqsood et al., (2013) evaluated the effects of participative, bureaucratic and directive leadership style in telecommunication sector and resulted with its positive effects on project performance and call for to evaluate other leadership styles of project manager in software sector of Pakistan.

Pakistan’s IT industry has been rising steadily with the growth being $2 Billion. A proved evidence of it has been found from the report of IITEC (International IT Telecommunication) Pakistan 2012. Pakistan has become 20th most excellent exporter of software services. Genuine export earning has been calculated about U.S $1 Billion. GDP contribution of Software houses of Pakistan is 1.2 percent. The growth rate of Software houses of Pakistan has been calculated about 33 percent. The professional growth of employment in Software houses of Pakistan is 41 percent. Pakistan was featured in GLOBAL Services Index for the first time in 2007 (IITEC, 2012).

Due to the increasing importance of software sector, the study under consideration test the effects of these three (Transformational, Transactional and Laissez-fair) leadership styles of project manager on project performance in software industry of Punjab Pakistan. To identify the need of this research in software industry a pilot survey had been conducted of some software houses which utilized leadership styles and project manager named Net soul, Avanza Solutions, systems limited and bayt and some other software houses which don’t utilized leadership styles and project manager like CureMD and Vaxsoft. In the result of survey this reality came across that 80 to 85 percent software organizations are not following leadership styles and project managers, as there exist only technical project manager, who deal with customer specifications but not with inner matters of software houses while project leader deal with HRM and other duties. Only 15 to 25 percent software organizations are utilizing project managers and their leadership styles. So the growth rate of software organizations which are utilizing leadership styles and project managers is much faster than those which are not utilizing leadership styles and project manager.

The gap of the previous studies is that limited research has been done, and most of the studies incorporate the effects of transformational leadership style and transactional leadership style or only transformational leadership style but not of the laissez-fair leadership (Leban, 2004), Turner & Müller (2005), Chan, A. and Chan, E. (2005) and Iqbal et al., (2012). These studies have mentioned above, it is recommended to evaluate the direct effect of leadership styles on project performance and also explore these effects at industry level. So the purpose of the current study is to investigate the impact of full leadership model (transformational, transactional, and laissez-faire) of project managers on project performance in Software industry of Punjab Pakistan.

1.2 PROBLEM STATEMENT

“To explore the leadership styles of project managers and further to evaluates its impact on project performance in software industry of Punjab Pakistan”

1.3 OBJECTIVES OF THE STUDY

The emphasis of the study will be on the following objectives:

1. To find the direct effects of transactional leadership of project managers on project performance.
2. To find the direct effects of transformational leadership of project managers on project performance.
3. To find the direct effects of laissez-faire leadership of project managers on project performance.
4. To find out the direct affects of three leadership styles at project manager’s level on projects performance to facilitate project managers to adopt the most effective leadership style.
5. To facilitate the software industry to increase their projects performance.
6. To strengthen the findings to generalize its results on software organizations.

1.4 SIGNIFICANCE OF THE STUDY

The study is significant in the following ways:

1. The study has broader our understanding regarding leadership styles of project managers and its effect in project performance in software industry.
2. It explained how the three leadership styles (transformational, transactional and laissez- fair) of project managers effect differently to project performance.
3. It helped in understanding that which leadership style of project managers is more appropriate in enhancing project performance in software sector of Punjab Pakistan.
4. It is significant for the project managers in software industry to choose the leadership style for excellent project performance.

1.5 RESEARCH QUESTIONS

Following research questions are proposed in this research after literature review.

Q1: Does transformational leadership style of project managers affect project performance in software industry of Punjab Pakistan?

Q2: Does transactional leadership style of project managers affect the project performance in software industry of Punjab Pakistan?

Q3: Does Laissez-fair leadership style of project managers affect the project performance in software industry of Punjab Pakistan?

Q4: Which leadership style out of three is more suitable for the project managers to enhance project performances in software industry of Punjab Pakistan?

To find the answers of these four questions, comprehensive literature review has been done and than in the light of that theoretical background research hypotheses have been developed. By utilizing quantitative research method, Multifactor Leadership Questionnaire (MLQ) has been used for data collection. The target population was eighty software houses in Punjab and the sample size was two hundred and fifty key first level managers, directly working under project managers like software Architects, Principal software Engineers Developers, programmers, and Quality Assurance personals working in these Software houses were targeted for data collection about the leadership style of their project manager. After that descriptive analysis, correlation analysis, regression analyses have been done and results have been generated. In the light of these results it is concluded that the transformational leadership style of the project manager affects the project performance in software industry of Pakistan. The transactional leadership style of project manager does not affect project performance in software industry of Pakistan as its results were insignificant. The laissez-fair leadership style of project manager does not affect project performance in software industry of Pakistan as its results were insignificant as its results were showing negative effect but at the same time they were insignificant. So out of three leadership styles the Transformational leadership style along with its two constructs charisma (CHM) and inspiration (INS) has been proved significant and it is concluded that the Transformational leadership style is more suitable for the project manager to enhance project performance in software industry of Pakistan.

In this chapter a detailed explanation has been given about the background of research. It also provides the problem statement, objectives of the study, research questions and significance of the study as well.

1.6 STRUCTURE OF THESIS

This work examines the leadership styles of project managers and its impact on project performance in Software Industry of Pakistan. For presenting significant and obvious information for the reader, this thesis is separated into a number of chapters:

This thesis takes start with summary, having a summary of the complete thesis.

The chapter number 1 is the introduction of the thesis which describes the background and rational of the study as well as the research questions which will be conversed in this study, problem statement and significance of the study.

The chapter number 2 is about searching and investigating the literature regarding the topic of this study. In this chapter, all articles, books, reports, theories, and conference papers about the variables of this study and suitable scholarly citation which explain relationships between variables of this study are mentioned. All these information is beneficial for the readers for clearing their concepts regarding the association and results of these variables observed in different studies.

The chapter number 3 is about the research design and methodology use in this study. This chapter provides complete information about the representation of the population, sampling technique and sampling frame and about the instrument of data collection as well as the sources of instrument. It also describes the various statistical tests which will be used to get results and software use for data analysis and purposed research hypothesis are also mentioned. Furthermore, the reliability of the scale is also tested in this section.

The Chapter number 4 is about data analysis. First of all the analysis of the demographic data of respondents have be done which has been collected from different software houses of Punjab Pakistan. This chapter also discussed in detail about the descriptive analysis and correlation analysis.

The Chapter number 5 described about the development of the regression models and regression equations. The parameter estimates, ANOVA and summary of the model are discussed in details in this chapter..

Finally the Chapter number 6 is all about the conclusions and future recommendations. In this chapter the answers of research questions are given which are generated from the results of fourth and fifth chapters. If the results are as accepted, or not, and if not then what are the possible reasons for this. Furthermore justification from the previous studies results, recommendation and implications of the study will be described. Limitations of the study will also describe.”

CHAPTER # 2
LITERATURE REVIEW

2 LITERATURE REVIEW

This chapter discusses prior literature on the topic of Full leadership model of project managers and its effect in project performance. It starts with a discussion on the concept of leadership styles, the importance of leadership styles of project managers and the sub contents of the main three leadership styles, the project performance, strategies and relationships between these variables and an overview of recent studies on the research. It describes the independent and dependent variables and their historical background.

2.1 LEADERSHIP AND ITS IMPORTANCE AND REASON OF BEING HOT ISSUE

Leadership is all about to put in to practices of visualizing, enabling and stimulating, and refreshing the employees (Rad., 2006). Leadership is a composite procedure and have severe uncertainties over the degree to which a set of standards, individuality or competencies can ever fully imprison the environment of what makes some leaders/organizations successful and others unsuccessful. There does not exist any good or bad leadership style. Every person has his or her own preferences or choices for leadership. The leaders who are task-motivated are at their best when the group performs and execute productively such as achieving a new sales record or do better than the most important participant. The leaders who are Relationship-oriented are at their best when the target is to achieve is greater customer satisfaction to establish a positive image of the company (Maqsood et al., 2013).

The table below lists the main leadership traits and skills identified by Stogdill in 1974.

Abbildung in dieser Leseprobe nicht enthalten

Source : Bolden, R., Gosling, J., Marturano, A. and Dennison, P., (June 2003).

Leadership is significant to any organization having group environment. It is commonly identified that employees having technical/scientific skills be short of leadership skills to efficiently deal with people. However there is a scarcity of experimental research in the project management literature that focuses on leader-ship as a serious success factor.

All the higher-ranking managers are in agreement that leadership is one of the most important influencing factors in project accomplishment and its weight age increases with the size or amount and complexity, intricacy of the project. Some senior managers think that there is not any one leadership style which is appropriate to all project situations or conditions. They felt that leadership style should be different depending on the intricacy of the project, skill or talent set of the team members, and phase of the project, means at which stage of the process the project is. For instance, they give preferences to task-oriented style (similar to transactional leadership) for a project that has fallen behind schedule and budget and is in the final stages, means task oriented leadership is used when at the last stages of the projects to meet the deviations of time and budget (Thite, 2000).

Because leaders describe the framework in which their followers and subordinates interact and do work toward a common and united purpose and objective, we trust that preceding results of a positive and encouraging link between transformational leadership and individual creativity can be extrapolated to an organizational level. Finally in the end, this is an experimental question, and we provide some introductory result posture on the efficiency of our anticipation (Jung, et al 2003).

In the current globalized economic or financial environment, customers’ immeasurably boosted the approach to information and suppliers, contractors has authorized them to demand forever increasing collections of product characteristics, top quality, enhanced repair, and sympathetic and encouraging price/cost ratios (Brett & Okumura, 1998; Yukl, 2002). These truths of the marketplace have put remarkable anxieties on companies to enlarge their competence and efficiency and, even more essentially, the originality that they bring to product/process enhancements, growth and maturity. All these factors ultimately enhance performances of their projects (Andriopoulos & Lowe, 2000; Cummings & Oldham, 1997; Tierney, Farmer, & Graen, 1999).

At the same time as Dess and Picken (2001) have accentuated, the 21st century business or industrial atmosphere and situations will require organizations to constantly innovate by tie together the shared knowledge, skills, and creative efforts of their employees and subordinates. Transformational leadership can be an efficient part of the rejoinder, and to our acquaintance and knowledge. Unless the leadership plays a vigorous role in giving direction, coordinating and maintaining these tasks or activities, employees, subordinates or organizational components might wind up working at cross-purposes. In reality, numerous studies have showed a positive relationship between leaders’ instigation of work structure or arrangement and performance of creative activities, which leads to organizational project performance (Keller, 1992).

Mumford et al. (2002), who state that ‘‘. . . planning by leaders should not focus on the carry out of a precise piece of work. To a certain extent, leaders’ planning should focus on the development and growth of, the universal types of projects that should be practiced, and the consequences of pursuing project results into development’’ (p. 716).

2.2 LEADERSHIP STYLES OF PROJECT MANAGERS

According to the contingency theory which has been proved very famous was about path-goal theory (House, 1971). This theory contains the suggestion that a leader should help the team in finding the path to their objectives or targets and also help them during the procedures in which they are proceeding towards their targets. Path-goal theory suggests four leadership styles:

1. Directive leaders (who only give orders or instructions).
2. Supportive leaders (who are helpful, encouraging and make compensations).
3. Participative leaders (who do work along the team to make the tasks easier).
4. Achievement-oriented leaders (who keep an eye on their goals to achieve in every situation).

Autocratic is a leader who practice high level of power, authority and control over his/her team members or subordinates on the other hand laissez-faire leaders leave everything on their team members or workers to handle with their work and contingent leadership style based on contingency theory according to that leaders take up the leadership style according to situation and circumstances (Iqbal et al, 2012) . Bureaucratic style refers to the following the fixed regulations, strategies and policies of organization. As per features of this leadership style leaders are not active or self motivated and they not at all change their manners with the changing environment. Democratic leadership style refers to the democratic power means supporting the dialogue; give confidence to employees to take part in providing new ideas, and processing all the available information or data to the best outcome. The democratic leader should be brilliant and capable enough to communicate that decision or conclusion back to the group to augment unity in the plan that is chosen (Ogbonna & Harris, 2000). Directive leadership can be explained as a training given by the leader to their subordinates concerning what to do, how to do and when to do. Cronkite (2001) said that directive style could be used in critical and burning circumstances to stop avoidable activities or procedures and to force people in the direction of new things and tasks. The unnecessary piece of equipment could harmfully affect the group performance mostly the people with high performance and presentation. The ability of the people to make themselves in shape and their contribution towards the organizational goal to achieve have been decline and also people become less dedicated by having this leadership. In order to have efficient use of directive leadership it should be used by the side of other leadership styles.

Even though the text or writing on the topics of transformational and transactional leadership has been growing very speedily over the previous 15 years, but there are only few studies we found which properly described that how the transformational and transactional leadership forecasts performance. For instance, Howell and Avolio (1993) gave statement that transformational, but not transactional, leadership of financial managers completely forecasted unit performance over a 1-year period.

According to the Turner, et al, (2010) both countries Ireland and Sweden preferred laissez-faire management styles then other styles, where as the countries like Austria and Romania were ready to believe and understand more autocratic styles. Citizens in Sweden wished for more arrangements, constructions and organizations as compare to the citizens of Ireland. Different leadership styles are appropriate in different size of companies and economies. So the laissez-fair leadership style of management were more suitable in small and micro level companies, while more democratic or autocratic leadership style of management is required in medium size companies.

Quinn (1988) makes comparison of the two leadership styles transformational and transactional. Elaborate transformational leadership style as relationship oriented and transactional leadership as task oriented because transactional leader focuses on tasks and procedures as compare to relation building like transformational leader. Substantial research work and literate is available regarding leader behavior and their relationships and connections and about subordinate’s performance. (Bass, 1990 or Yukl, 1994)

Meindl (1990) points out that a revival of attention has been seen in the context of the theory of leadership study, which is becoming the reason of recognition of difference between both leadership styles transformational and transactional. This acceptance will show its effects in future.

Table 2: Dimensions of the Multifactor Leadership Questionnaire (Bass,1990)

Abbildung in dieser Leseprobe nicht enthalten

Source: Muller, R., Turner, J.R., (2007).

The models of both leadership styles transformational and transactional are different on the basis of the process through which leaders do inspire their followers. The models are also different on the basis of the types of goals set by the leaders or supervisors (Hater & Bass, 1988).

2.2.1 TRANSFORMATIONAL LEADERSHIP STYLE

Transformational leadership goes ahead of the cost-benefit exchange of transactional leadership by encouraging and stimulating followers to perform beyond potential (Bass, 1985). At last, intellectual motivation is also part of the transformational leadership style. An intellectually motivating leader provides followers with a flow of challenging new ideas and thoughts to excite rethinking of old ways and procedures of doing things (Bass, 1997 and Bass, 1985) and (Yammarino et al., 1990 and Hartog et al, 1997).

Bass et al. (2003) describe four mechanism of transformational leadership which brings into line with the firelighter style:

1. Idealized influence correspond to role-modeling behavior according to that the leader encourage satisfaction, trust , and admiration and has a present for seeing what is really important and transfer a sense of mission.
2. Inspirational motivation corresponds to the use of descriptions and symbols or signs that allow the leader to move up the prospect and beliefs of their follower relating to the mission and vision.
3. Individualized consideration stand for providing practical learning or guidance and occurs when the leader hand over a project, presents instruction, training and teaching, and treats each follower as an individual.
4. Intellectual stimulation occurs when the leader stimulates followers to think in new ways in order to deal with problems, and the use of interpretation and planning before taking action. Effectively used, it can support in the cognitive improvement of the follower and leader.

James MacGregor Burns (1960) wrote in his book ‘Leadership’ was the first person who presented the concept of “transforming leadership”. The Burns’ concept of transforming leadership “is affiliation of joint motivation and rise that alters followers into leaders and may be transform leaders into moral managers”. Burns went on to also further define it by suggesting that:

“[Transforming leadership] occurs when one or more persons engage with others in such a way that leaders and followers raise one another to higher levels of motivation and morality…”

Burns sketches upon the psychology of humanistic interest group in his writing upon ‘transforming leadership’ by suggesting that the transformational leader contours, modifies, and lift up the causes, worth and aims or objectives of followers for attaining considerable alteration in the procedure and course. He suggested that there is an extraordinary authority involved in transforming leadership with leaders “armed with principles [that] may ultimately transform both leaders and followers into persons who jointly adhere to modal values and end-values”.

The type of leadership which has been under discussion in this study is a set of manners that has come to be tagged ‘‘transformational leadership.’’ Transformational leadership accentuates longer-term and visualization-based motivational practices (Bass & Avolio, 1997) and has been the subject of widespread research in the past decade.

2.2.1.1 TRANSFORMATIONAL LEADERSHIP’s CONSTRUCTS AND PROJECT PERFORMANCE

2.2.1.1.1 CHARISMA AND PROJECT PRFORMANC

Charisma engages getting value for, faith and assurance in others and broadcasting a well-built sense of mission to them. Inspirational Motivation indicates conversing visualization with facility and self-belief, growing hopefulness, team strength and passion. Intellectual Stimulation means energetically heartening others to look at old techniques in new ways, promoting novelty, and pressuring the use of intelligence and cleverness. Individualized Consideration provides special concentration and attention to all individuals or personals making each individual feel important and worthy, and hand over’ tasks or responsibilities to them as a means of expanding and build up followers (Geyer & Steyrer, 1998). Transformational leadership is featured by charisma and visualization. In this study the flourishing IT managers were voted high on their capability in indicating the significance of having a physically powerful sense of intention and for exhibiting their confidence in their principles, ideas and standards (Thite, 2000).

There has been done diminutive research to straightly evaluate the realistic implications of charismatic leadership for organizations and businesses. The majority of our understanding about the subject appears from historical explanations and expressive studies of charismatic leaders. These studies disclose that charismatic leadership can have both type of effects on followers and project performance positive and negative (e.g., Bennis & Nanus, 1985; Kouzes & Posner, 1987; Tichy & Devanna, 1986). Most promoters of charismatic leadership theory and presumption admit the likelihood that it can have negative as well as positive penalty for project performance and organizations. A number of authors have described causes and reasons of not be always practicable or desirable and beneficial to have charismatic leaders inhabit in main positions in private and public sector organizations (Bryman, 1992; Conger, 1989; Hogan, Raskin, & Fazzini, 1990; House & Howell, 1992; Howell, 1988; Sankowsky, 1995; Trice & Beyer, 1993).

Charismatic leadership involves fundamental modifications in the plan and traditions of an organization, which may not be needed or suitable. When people give extensive authority to a leader with an attractive dream of enhanced future this power is frequently distorted while the visualization of a good future remains an empty dream. Division of organization members into devotees and antagonists can paralyze the organization with deadlock in the countenance of crises needed urgent action. Charismatic leaders habitually are unsuccessful to plan for an experienced descendant, resultant in a new crisis when they leave (Yukl,G., 1999). DeGroot, Kiker, and Cross (2000) ended a third Meta analysis of the transformational and transactional leadership literature, reinvestigating and resulting the positive relationship between scores of charismatic–transformational leadership and performance described in past.

2.2.1.1.2 INSPIRATION AND PROJECT PRFORMNACE

Transformational leaders went advance than replacing contractual contracts for wanted performance by energetically appointing followers’ individual value systems (Bass, 1985; Gardner & Avolio, 1998; Shamir, House, & Arthur, 1993). They present ideological justifications that connect followers’ characteristics to the collective characteristic of their organization, thus escalating followers’ inherent or built in inspiration and motivation (rather than just providing extrinsic inspiration and motivation) to perform their job. By communicating an imperative idea and assignment for the organization, transformational leaders amplify followers’ understanding and acceptance of the significance and standards connected with preferred results, lift up their performance anticipations, and enlarge their eagerness to go beyond their self-benefit for the sake of the shared and united entity (Bennis & Nanus, 1985; Conger & Kanungo, 1998; House, Spangler, & Woycke, 1991). A number of studies and research work have found in which the intrinsic or inherent inspiration and motivation directs towards originality because intrinsically or built in inspired and motivated people have a propensity to favor original or unique approaches and procedures for solving problem (Amabile, Hill, Hennessey, & Tighe, 1994; Zhou, 1998). Followers’ recognition with the organization’s dream, mission or targets, and customs also has been associated to dedicated levels of inspiration and motivation toward higher levels of performance (Shamir et al., 1993).

2.2.1.1.3 INDIVIDUALIZED CONSIDERATION AND PROJECT PERFORMANCE

According to Geyer, & Steyrer, (1998) individualized consideration is positively and completely connected to short-term performance but negatively linked to long-term performance. Individualized Consideration behavior (e.g. "provides advice to me when I need it") requires to circumstances where leader deeds can have an urgent impact on what is done and how it is done. Therefore it appears evident that short-run performance (measured in terms of flow data) act in responses strongly to Individualized Consideration. In the context of long-term performance (measured in terms of stock data) a clarification of the anticipated negative relation may need to take into account the experience of subordinates and the associated inversely related needed for contemplation.

As transformational leaders might at times obtain an instruction or command approach, they regularly request followers’ participation and contribution by highlighting and by giving stress on the importance or benefits of cooperation, collaboration and teamwork in carrying out combined tasks or activates, given that the opportunity and chance to learn and get trained from shared experience, practice and knowledge and assigning authority, power and right to followers to perform any required essential accomplishment for effective performance (Bass,1985).

On the other hand, a low performance level may be due to insufficiencies in the qualification, ability and skills of employees. These have need of suitable or appropriate leader behavior to recompense or get rid of such deficits and short falls which entail that leaders may expend more time on training, guiding, coaching and teaching than in branches with high long-term performance. Consequently the speculation of Bass & Avolio (1990b) that transformational leaders "gain greater levels of long-term performance" (p. 242) than transactional leaders may be too common and may perhaps only hold for interior transformational dimensions ,aspects and constructs but not for Individualized Consideration (Geyer, & Steyrer, 1998).

2.2.1.1.4 INTELLECTUAL STIMULATION AND PROJECT PERFORMANCE

Intellectual stimulation: victorious managers artistically manipulate their subordinates by promoting exceptional thinking in their subordinates, inquiring established methods of doing things, recommending new ways of doing their jobs, highlighting the value of questioning hypothesis and stimulating subordinates to look at troubles from diverse perspectives (Thite, 2000). In a study of 78 managers, Howell and Avolio (1993) established a positive relationship between the intellectual stimulation provided by the leader and unit performance. By providing intellectual stimulation (Bass & Avolio, 1997), transformational Leaders or project managers give confidence followers to think ‘‘out of the box’’ or something new and innovative and to accept generative and investigative judgment procedures (Sosik, Avolio, & Kahai, 1997). Transformational leaders excite their followers to think about old problems in new ways and give confidence them to defy their own worth, customs, and principles or ideas (Hater & Bass, 1988).

Most of the times, transformational leaders are in a position that they can achieve this transfer of ideas or way of thinking and viewpoint by serving as role models for their subordinates. By means of showing high beliefs and assurance in followers’ potentials, transformational leaders also assist to build up followers’ dedication to long-term targets, assignments, and visualization and to transfer their center of attention from short-term and instant solutions and intentions to long-term and essential solutions or way outs and purposes. Indeed, in a study of Austrian branch bank managers, Geyer and Steyrer (1998) described a stronger positive relationship between these managers’ degree of transformational leadership and long-term as compared with short-term performance.

2.2.1.2 SUMMARY OF TRANSFORMATIONAL LEADERSHIP

If transformational leaders are compared to transactional leaders, findings shown that transformational leaders have subordinates who tale greater contentment, inspiration and dedication and who more often apply additional exertion .Transformational leadership is also connected with strong levels of trust in the leader on the part of followers, which in turn leads them to show more so-called ‘‘organizational citizenship behaviors’’ (Podsakoff, et al., 1990 and 1996). Summing up the discussion it is seen that the transformational leadership style is more useful and effective by applying on subordinates and have a propensity to getting higher performing units and organizations (Fiol et al, .1999 and Lowe et al, .1996).

In recent times leading critics have begun to recommend that transformational leadership may be of meticulous interest and importance in the project-based perspective. They give pressure for utilizing transformational leadership as the increasing significance of emotional and motivational or encouraging aspects of the role of project managers, and the need for project managers to develop confidence or trust in and promise to a larger moral purpose in their role in organizations (Turner & M€uller, 2003). Mäkilouko (2004) showed that project managers are mainly people-focused, with 40 out of 47 project managers in his sample were being purely people-focused. On the other hand, according to the findings of Lee-Kelley, Leong, and Loong (2003) the half of their sample was relationship-oriented means having transformational leadership style. Keegan and den Hartog (2004) forecast that a project manager’s leadership style needs to be more transformational than transactional, but he did not find any considerable link. Mäkilouko (2004) recommends that most of the project managers adopt task-oriented styles (transactional leadership style) that are unsuitable in multicultural situations and context.

2.2.2 TRANSACTIONAL LEADERSHIP STYLE

Transactional leaders construct clear structures which make everything clear that what he/she required from his/her subordinates. Transactional leader give incentives, compensations and prizes to the subordinates when they follow his/her orders. Transactional leaders have the right to punish the subordinates when anything goes wrong due to the fault of the subordinates (changingminds.org, and goleman, 2008).

Hooper and Potter (1997) highlighted the seven basic and main features of transactional leaders. These types of leaders encourage their subordinates through emotional support and then easily and successfully implement change.

1. The leader set direction and give guidelines.
2. Exhibit an example by him/her self.
3. Do communicate to every needed.
4. Setting the positions and arrange them
5. Bring best qualities in people which are followers.
6. The transactional leader work as a change agent.
7. Take decision in a emergency and in the uncertainty

Having a look at past declares that lots of transactional theories have been studied and tested comprehensively. A number of them obtain significant experimental encouragement. For instance path-goal theory (House, 1971; House & Mitchell, 1974; Indvink, 1986) and vertical dyad theory (Graen & Cashman, 1975; Graen & Scandura, 1987).

2.2.2.1 THE THREE CONSTRUCTS OF TRANSACTIONAL LEADERSHIP STYLE

1. Contingent reward
2. Management by expectation (active)
3. Management by expectation (passive)

By utilizing Burns’ views Bass (1985) comments that leadership is usually conceptualized as a transactional or a process which monitor cost and benefits.

In accordance with (Bass) the transactional leadership consists of three proportions. The very first dimension is contingent reward. According to contingent reward system the leader gives rewards and compensations to the followers and subordinates when they achieve the given particular performance level. Reward is conditional to effort level and on the level of performance achieved (Bass, 1990i2 or Yukl, 1994). The second and third dimensions of transactional leadership are management by exception. When the leader utilizes management by exception he does not interfere unless there come any problem or given specified standards are not fulfill (Bass & Avolio, 1989).While using management by exception under transactional leadership style most of the leaders stay away from giving instructions and guidelines if the previous ways and procedures are working well and permit followers to carry on doing their duties as all the time before, if performance objectives are fulfilled (Hater & Bass, 1988). Furthermore management by exception has two types first is Active and second is Passive. The active approach has the features that a leader always keeps monitoring the procedures, and keenly seeks deviations from specified standards and takes urgent actions when things go wrong to correct them. The passive approach has the features that the leaders who are not proactive, they did not take actions until anything goes wrong and any irregularity actually happened. The difference between the two approaches is that in the active form leader is looking for keenly the deviations before they happened. While in the passive approach the leader waits for the problems and irregularities to become visible (Hater & Bass, 1988).

2.2.2.2 CONTINGENT REWARD AND PROJECT PERFORMANCE

In the study of Geyer, & Steyrer, (1998) two scales were recognized and presented as attributes of transactional leadership: Contingent Reward leadership takes place when the leader give rewards, prizes or punishments the followers depending on the sufficiency of the follower's performance. Davis et al, (2008) mentioned in his research study that the Positive correlations are connected with attributes of contingent reward, a transactional leadership style element. Contingent reward was supposed as a favorable positive and encouraging management style by the contributors of this study.

Although this leadership (Contingent reward) style is part of transactional leadership, it is at rest fundamental in a successful leader as it clarifies without haziness the association between tasks or jobs and related rewards. This facilitates subordinates to deal with their `expectations' of the leader and the organization. Instead of illuminating assignments, duties and rewards or prizes, the manager also guarantees that subordinates or assistants will obtain suitable incentives for attaining performance targets and goals (Thite, 2000). Transactional leadership’s construct contingent reward leadership style clearly defines about the required work standards and tasks and their rewards, prizes, compensations in case of fulfillment and achievement of set standards and tasks. This clarifying feature of contingent reward should result in an increase in the anticipated level of individuals and groups achieving the level of performance (Bass, 1985).

Preceding research literature has revealed that the transactional contingent reward style leadership has its positive effect and relation with the subordinates’ dedication, contentment and performance and as a result of it with project performance (Bycio, Hackett, & Allen, 1995; Hunt & Schuler, 1976; Podsakoff, Todor, Grover, & Huber, 1984).

2.2.2.3 MANAGEMENT BY EXPECTATION ACTIVE AND PROJECT PERFORMANCE

Active management by exceptions: According to this style, victorious managers strictly check and examine the performance of subordinates for mistakes and errors, abnormalities and misdeeds and divergences from set patterns or standards in order to implement or impose regulations. This transactional attribute, if carried out alone, might be leads towards pessimistic consequences and results. On the other hand if this management by expectation active is used as an additional element of transactional leadership than it would come up with positive results. Although the IT experts anticipate practical independence in the team members so that group clashes can be diminished. The disappointment into understanding and practically implementing to organizational methods, and not doing work of certification and records etc, all these things can disrupt a good quality team work and required a need of regular interferences by the project manager to observe, check and keep an eye on everything and to accurate variations and to solve problems so that it is make sure that the group is dragging into one unified track (Thite, 2000). For attaining enhanced project performance, the project manager depends seriously on trustworthy monitoring system, active management by expectation. As a result of it project manager can get or see signs of problems in the project before time, so he/she would have in position to take remedial measures for it. These problems can be actual and genuine or possible and likely to happen (Cheung et al, 2004). The project manager having active management by expectation leadership has to keep the project network sustain and strictly keep an eye on the existing levels cost, time and quality and comparing with the required set standards of these project performance indicators during the life of the project and until its end (Blackburn, 2002).

2.2.2.4 MANAGEMENT BY EXPECTATION PASSIVE AND PROJECT PERFORMANCE

Management by Exception keep away from giving directions and guidelines if recognized course of actions are operational functional and effective and permits followers to carry on doing their jobs , works and tasks as always if performance objectives and targets are met (Geyer, & Steyrer, 1998). Davis et al, (2008) declared results of his research that they were combined with transactional leadership elements or factors. Active and passive transactional elements were supposed to be less efficient than the leaders who exhibited or displayed the other leadership elements.

The findings of Thite, (2000) revealed that the mean rankings recommend that in vocabulary of leadership styles, winning and victorious managers demonstrate more of transformational and technical leadership traits than transactional leadership in line with Bass and Avolio's model and the theoretical framework of this study. Management-by-exception passive (MBEP) was the only leadership trait in the study which tested results were negative and this was evidently replicated in the results as the more successful and winning managers attained less on this scale.

2.2.2.5 SUMMARY OF TRANSACTIONAL LEADERSHIP:

As (Hater and Bass., 1988) explained that making contrast in transformational and transactional leadership does not mean that the models are unrelated. According to (Burns. 1978) consideration these two types of leaderships are as contradictory ends of a field. Yet here we pursue the views of (Bass, 1985) where he considers transformational and transactional leadership as detach dimensions. He argues that transactional leadership plays a role of base for Transformational leadership but not vice versa. Jack Welch, have remained the chairman and CEO of GE between the years of 1981 and 2001. Jack Welch also had additional features of transactional leadership along with transformational leader. For instance he continuously gave punishments to his managers if they carried out wrong and he frequently gave rewards to the top 20% with extra payments and other accumulation options due to their good performance. If we compare the two leadership styles, the transactional leadership can be most appropriate type of leadership because it is mainly associated to the managerial skills, as in the transactional leadership style it is included to get up to dated about the daily routine activates and processes carried out. It would not be wrong if we said Jack Welch the Manager of the century in 1999 by Fortune magazine (Oke et al, 2009).

On the other hand on the bases of the work of (Dulewicz and Higgs., 2003) transformational leadership style favored in multifaceted and changing projects and a transactional style chosen on simple, engineering and manufacturing projects. The study done by Thite, (2000) fully supported the applicability of Bass and Avoloi’s transformational leadership model. It has three dimensional viewpoints concerning managers (self), subordinates and superiors, all evidently maintained the main and chief important propel of the model that is the transformational leadership fabricates better results by expanding' transactional leadership.

2.2.3 LAISSEZ-FAIRE LEADERSHIP STYLE

When we talk about 'laissez-faire' it is meant that the leader is not adequately aggravated or effectively skilled to perform and carried out supervisory and managerial duties or responsibilities, this examination seems accurate. On the other hand, one could perhaps define situations in which extremely active leadership is not necessary and perhaps not even wanted. For example, in their substitutes for leadership theory Kerr & Jermier (1978) put forward more than a few subordinate, task or procedures, and, organizational features that could shrink the significance of leadership. According to Geyer, & Steyrer, (1998) they mentioned that the seventh scale is called Laissez-Faire. It speaks about the escaping or nonexistence of leadership and is, by definition, the most inactive and motionless type of leadership. As contrasting to transactional leadership, Laissez-Faire corresponds to a non-transaction.

2.3 PROJECT PERFORMANCE

A project is defined as a distinctive set of corresponding actions with clear-cut starting and finishing points, undertaken by an individual or organization to achieve particular objectives within definite schedule, cost and performance parameters (Anderson, & Merna, 2003). Performance of software projects is of two types: subjective performance and objective performance. While estimating subjective performance, it is a procedure of evaluation which shows the views and judgment of the people engaged in a project (Wohlin et al., 2000). On converse, objective performance incorporate additional quantifiable actions like cost, effort, and schedule overruns (Gray et al., 1999). There are different implications in different organizations regarding software development performance measures, the on hand literature frequently recommend the use of both subjective and objective performance measures (Briand et al., 1999; Gray et al., 1999). This study reflects on the performance of both software development procedure and result (i.e. the software and documentation) urbanized at the final stage of the project. It is essential to calculate or compute both procedure and result or outcomes, as there is a prospective clash among the competency of the procedure and its excellence. For instance procedures which are firmly prohibited and monitored and having end result in a harsh or swear obedience to the time and cost approximates might at times insufficiently investigate product functionality. There are a number of project outcomes which are tricky to calculate. This study specially target the performance linked outcomes or results, as it is important according to literature and for the reason that performance is serious dependent variable. Performance parameters are real and genuine project cost, time structure reimbursement, the structure's compatibility with its surroundings, and the practical performance of the resultant organization (Nidumolu, 1996). Even after thirty years of practice and understanding in administrating software development projects, many organizations are still facing cost and schedule overruns. One chief and main hurdle in finishing projects on time and within budget is the ambiguity and insecurity linked with software development. The main reason behind it is that don’t have complete information regarding the organization under study (Argote, 1982). According to the (Humphrey, et al, 1991) there are some specific principles which allow huge groups of developers to organize their actions more simply, so that the probability of project holdup and cost overruns decrease. They encourage enhanced contact along with the contributors in a project, and among the project team and the managers they report to. This thing will create a unified organizational society where organizational associates converse in united "technical language, allocating shared practices, or tasks and procedures, and considering the organizational goals as their own goals.

The concept of project performance is described by the Cheung et al, (2004) in his study about the improvement of a Web-based construction Project Performance Monitoring System (PPMS). The purpose of this system is to give support to project managers in implementing control in construction project. With the support of a team of project management specialists and seniors, project performance evaluating elements are recognized for insertion in the PPMS. These are People, Cost, Time, Quality, Safety and Health, Environment, Client Satisfaction, and Communication. The utilization of the PPMS can aid senior project management, project directors, project managers, etc., in monitoring, tracking and assessing, judging project performance. The project performance evaluating elements can be detached or added according to the project objectives. The most important thing is PPMS facilitates the project manager to evaluate or match up to and present data in user-friendly diagrams, charts and curves.

In the study under consideration project performance elements are time, budget, and client satisfaction, level of productivity and project team satisfaction, which are somehow similar to PPMS.

2.4 RELATIONSHIP AMONG THE THREE LEADERSHIP STYLES AND PROJECT PERFORMANCE

According to Dulaimi et al. (2005) a research done in construction context in Singapore in which 32 project managers and 94 project team members contribute to data , found that the leadership adopted by the leader gives guidelines and acquire liability for meeting project targets. The leadership style adopted by the leader and project manager is the key feature and aspect for the success of the project (Cheng et al., 2005; Dainty et al., 2004; Muller and Turner, 2007). Scott and Bruce (1994) advocated that if there exist a strong relationship between employees and their managers then this thing will affect their opinion, and vision of the environment in which they work, this thing encourages their innovative skills and accommodate innovation. In the same fashion loyal and encouraging supervisors who do not interfere enough and let the employees utilize their abilities and innovative skills, help in creating innovative environment. Such supervisors contribute a lot to develop and improve employee’s hidden skills and performance (Kissi et al., 2012a; Oldham and Cummings, 1996; Shalley and Gilson, 2004). Scott and Bruce (1994) proposed employees, expectations about the supportive behavior regarding innovation at the place of work and under the organizational surroundings. If these expectations come true then this thing affect their propensity to take new risks and implementing innovative techniques and procedures during their work and duties which in turn effect project outcomes. An insight about the preference inflow of organization reveal about how the project members will direct their skills, efficiencies, labor and hard work (Schneider et al., 1994; Kissi et al., 2009) and establish their enthusiasm, attitudes and performance, (Kozlowski and Hults, 1987) during delivering of project.

2.4.1 TRANSFORMATIONAL LEADERSHIP AND PROJECT PERFORMANCE

Effective performance by an individual, group, or organization is understood to depend on leadership by a human being with the abilities to find the correct and accurate path and stimulate others to take it. In most editions of transformational leadership theory, it is a fundamental, main and essential hypothesize that an effective leader will manipulate followers to make self-surrender and put forth outstanding and excellent effort to achieve higher level of project performance (Yukl, 1999). Keller (1992) also originated that transformational leadership positively affected performance of research and development (R&D) projects in a large R&D organization. According to the research findings of Geyer, & Steyrer, (1998) the associations between leadership and performance we locate support for the expansion hypothesis (H1) that transformational leadership has an effect on performance in addition to the effect of transactional leadership. Means transformational leadership has more significant effects on project performance than transactional leadership. The next findings and results might require particular and unusual concentration for creating new hypotheses: central part Transformational Leadership emerges to be more powerfully related to long-term than to short-term performance.

The hypotheses pointed out that there would be a significant correlation and association between the three factors of project managers’ leadership style (transactional, transactional, and laissez-faire) as professed by subordinate of project managers and subordinates’ readiness and eagerness to put forth additional effort, leadership effectiveness on project performance (Davis et al, 2008). Analysis results specify that although transactional leadership presents effectual leadership, a superior attempt of additional exertion, usefulness, and contentment is achievable with expanding of transformational leadership. Both transformational and transactional (contingent reward) can be operated in the project management atmosphere to encourage acquaintances to build up and carry out their efforts further than typical expectations and anticipations. On the other hand, transformational leadership varies from transactional by identifying employee needs and endeavoring to extend those needs from lower to higher levels of maturity (Avolio, & Bass, (2004).

This study offered conclusive findings relation to the style of leadership (i.e. transformational) that is most efficient significant and successful in the project management work environment. Findings of this research provides conclusion that the subordinates have common desires from their leadership. Subordinates desire to know what is to be accomplished and why, a practical view of the dream, and an affection and connection to the final goal (high project performance). Most of the project managers are project goal oriented or achiever. Thus, having such project managers that give reward at project success and are worried with professional goals builds a positive relationship between project managers and subordinates (Davis et al, 2008).

2.4.2 TRANSACTIONAL LEADERSHIP AND PROJECT PERFORMANCE

Bass and his colleagues started the experiential exploration of transformational and transactional leadership two decades ago. They projected that transformational leadership is consist of four elements, that transactional leadership is self-possessed of three elements, and that a supplementary type of non-leadership exists (laissez-faire leadership). The Multifactor Leadership Questionnaire (MLQ) has been expanded to judge these elements and much has been educated about the positive effects of transformational leadership. Yet, extreme less concentration has been paid to transactional leadership and non-leadership (Hinkin, & Schriesheim, (2008). Taking into account the results and findings of Davis et al, (2008) it can be seen that the correlation analysis concluded that transformational leadership has significantly and positively connected with subordinates’ self-reported perception about their leaders’ leadership style efficiency. Perception regarding leaders’ leadership effectiveness is negatively and significantly associated with transactional (passive) and laissez-faire leadership.

2.4.3 LAISSEZ-FAIR LEADERSHIP AND PROJECT PERFORMANCE

Bass (1990) informs that laissez-faire leadership generally correlates negatively (— .3 to ~.6) with other, more active leadership styles. Bass (1990^7) give results that there is a negative relationship between laissez-faire leadership and a variety of subordinate performance, exertion and attitudinal indicators. This implies that laissez-faire leadership is an unsuitable way to lead in all the time. The dissimilarity between laissez-faire and passive management-by exception is not obvious when the experiential data are examined. As described in Bass (1985) passive management-by-exception and laissez-faire leadership form a higher order factor in Bass' data. Also, in a study by Yammarino & Bass (1990), passive management-by exception and laissez-faire correlate positively with each other and negatively with the other leadership dimensions.

Laissez-faire leadership style considerably influences the dependent outcome variables in a negative way. When project managers were rated high in laissez-faire leadership style, by their subordinates and the additional effort put forth by subordinates, so job satisfaction, and insights of leader’s effectiveness on project performance was low (Davis et al, 2008).

2.5 SUMMARY

In spite of the hypothetical or dimension inadequacies, our end results specify that the latest edition of the MLQ (Form 5X) is a valid or applicable and reliable, consistent and dependable tool that can sufficiently compute and assess the nine elements including in the full-range theory of leadership. Even though the MLQ (Form 5X) and to be sure, any leadership survey device, will never report for all promising leadership proportions, it stands for a groundwork, bias and institute from which to carry out advance research and to enlarge our thoughtful of the ‘‘new models of leadership’’ (Antonakis, et al., 2003). The prognostic strength of the theory has been the center of attention of dozens of studies (for reviews, see Avolio, 1999; Bass, 1998), including four meta-analyses (DeGroot, Kiker, & Cross, 2000; Dumdum, Lowe, & Avolio, 2002; Gasper, 1992; Lowe et al., 1996) that have offered considerable maintenance for the forecasted associations using both subjective and objective procedures of performance. To our acquaintance, there has been little or no disagreement nearby the prognostic nature of the theory. We trust that the FRLT (Full Rang Leadership Theory) is presently on both sides of these two phases and now it should be experienced to see whether the nine-factor model can be established within and between unreliable background situations. Now researchers or investigators and examiners should be promoted to provide details about the results and findings for the full nine-factor model and the related circumstances under which the measures were gathered (Antonakis, et al., 2003).

As project managers are visualized of as leading’ sets of brilliant people in an environment of shared administration or organization’’ [17, p. 72-2] the importance has transferred from power and agreement to recognition, faithfulness and promise and dedication. Such procedures and practices are innermost to transformational leadership. As a result, transformational leadership is a style of leading or guiding that may well suit the project framework and environment (Carpenter, 2002). At the same time as the literature would suggest that transformational leadership can be extremely applicable to and helpful or important for project-based firms or organizations, there is a scarcity of empirical studies to confirm this. All of this recommends the inevitability for earlier inspection of the idea that transformational leadership is a suitable and efficient leadership style for managers in project-based organizations (Keegan, & Hartog, 2004).

CHAPTER # 3
RESEARCH METHODOLOGY

3 METHODOLOGY

This chapter has a discussion about the methodology to collect the data and to analyze the data to deal with the research problems and research question that are developed to answer. The major problem lies about to know the impact of these leadership styles in project performance. This chapter is divided in sub sections;

3.1 RESEARCH DESIGN AND PROCEDURE USED

As intend of this study was to inspect and examine the three leadership styles of project managers and their effects on project performance. So the quantitative research method has been used here, because by using this method it was easy to target a large number of samples and get a comparable response from the first level personals directly working under the project managers about the leadership styles of the project managers and its impact on project performance in software industry of Punjab Pakistan. It was not suitable to use qualitative method for this study because it generalizes the behaviour of each human being by interviews on whole target market, and the response collected from interviews does not depict the behaviour of target market because every individual is different in behaviour.”The research has been conducted via survey method by using a self administered questionnaire.

3.2 TARGET POPULATION

Population selected for this study is software industry of Punjab. According to Pakistan Software Export Board (PSEB), our National Software Industry has very pitiable infrastructure, supply reasonable quality and give out at a less cost in market if we compare to India, Russia, and Singapore. The tendency of software firms is growing with the course of time at national and International level. Pakistan software industry is not capable to construct its solid values to catch the attention of their national and international customers. It illustrates that there is a strapping need to advance the quality of services, goods and projects in a row in the industry along with strong IT-infrastructure. There are 495 firms in Karachi, 459 in Lahore, 373 in Islamabad and 92 in other cities of Pakistan (PSEB, 2008).

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