Sharifah Rahama Amirul1 Normala Daud2 1. School of Business and Economic, University of Malaysia Sabah, Locked Bag 2073 88999 Kota Kinabalu, Sabah Malaysia Faculty of Business Management, Universiti Teknologi Mara, 40450 Shah Alam, Selangor Malaysia * E-mail of the corresponding author:email@example.com
Abstract The inspiration of conducting this paper is to support Malaysian government endeavour and relentless effort in evolving government linked companies (GLCs) those are socio-economic driver to the country. Understanding the impact of leaders’ styles on leadership effectiveness has brought into new insight and awareness in order to strengthen GLCs establishment. Typically, lots of researches or studies highlighted more on both transformational and transactional leadership styles. This paper has examined the full-range leadership styles of leader in Malaysian GLCs and its impact on the leadership effectiveness. Based on findings of this paper has shown that most of leaders in Malaysian GLCs were demonstrating transactional leadership style but yet, the transformational leadership was the most effective leadership style. Contrarily to passive/avoidant leadership that commonly found to have negative impact was found to be no significant impact or relationship to leadership effectiveness. The remarkable results from passive/avoidant leadership style had come out with contrary results ever in leadership field, this point would be further discuss in this paper. The Multifactor Leadership Questionnaire (MLQ-5X) that developed for about 25 years by Bass and Avolio (2004) was used to investigate the impact of leadership styles on leadership effectiveness in Malaysian GLCs. Keywords: Malaysian GLCs, Leadership Styles, Leadership Effectiveness
1. Introduction Malaysian government has a great concern on strengthening leadership in order to achieve high level of Government Linked Companies performance which aspires to have several regional and become global champions by 2015. Moreover, GLCs are socio-economic driver to the country and transformation of GLCs was identified as a national priority and integral to Malaysia’s aspirations of achieving developed country status (GLCT Programme Progress Review - March, 2010). Therefore, leadership effectiveness is very important for GLCs’ survival in today’s challenging environment because poor leadership can result in GLCs being mismanaged and squandering government assets and resources (Boardman & Vining, 1998). Northouse (2007) described that leadership is a process whereby an individual influences a group of individuals to achieve a common goal. While for leadership style is the manner and approach of providing direction, motivating people and achieving objectives. In nutshell, leadership styles viewed as behavioural models used by leaders when working with others (Fertman & Liden, 1999). Thus, understanding the correlation between leader styles and their effectiveness would add valuable evidence to existing knowledge of leadership in Malaysian GLCs. The inspiration of conducting this study is to support Malaysian government endeavour in developing GLCs those are integral part of the Malaysian economic engine (GLCT Progress Review May, 2011). Orange Book (2006) has been especially designed for GLCs transformation programme to strengthen GLCs’ leadership development which indicated that GLCs requires more leaders who can truly transform GLCs and achieving breakthrough performance as well as to provide guideline to develop leadership quality. In line with GLCs transformation, leadership effectiveness is a vigorous part of consistent leadership development. Warrick (1981) stressed that the potential of leadership styles consequences should be understood and not be underestimated. Leadership style is one of the factors that play significant role in enhancing or retarding the interest and commitment of...