Investigation Of Causal Relationship Between Leadership Styles And Staff/ Employee Retention - Research Paper Example

As the concerns over the future of business houses increases, employees are also getting apprehensive about their future prospect. The disquiet of the employees regarding job security, salary, and culture and work environment has been like never before. Nevertheless, most of employees have a belief that all the aforementioned factors are controlled by the manager or the person, who is commonly known as “the boss” (Groarke and Tindale, 2008; Cottrell, 2001; Chaffee, 2005). In addition, employees also reckon that, it’s the boss who is accountable for developing the organizational culture.

According to them, the retention and layoff of employees greatly depends upon the behaviour and attitude portrayed by the manager (Bryman, 1998; McEwan, 2003). The initial study about the area of concern revealed that the major drivers of employee retention and loss are salary, career growth, job satisfaction, organizational culture and the benefits offered by the company (leaves, medical allowance, insurance etc.). Although, the aforementioned factors are in the control of the organization, but several other factors that are within the control of the managers also acts as an influencing factor.

Some of the factors that remain within the control of the managers and can play crucial role in influencing employee retention are more involvement in decision-making, more appreciation, better communications, more team building efforts, flexible working hours, better training and coaching, and more autonomy. Hence, all these factors are considered by organizations for developing employee retention programs. Nevertheless, there are hardly any organizations that consider leadership practices as one of the components of employee retention program.

However, it is believed that leadership practices play crucial roles in retaining employees within the organization. The principal objective of the study is to analyse how leadership styles within originations is important in employee satisfaction and retention. Hence, from this statement the hypothesis can be developed as follows: - H0: - leadership styles within the originations are important for satisfaction and retention of the employees. H1: - leadership styles within the originations are not important for satisfaction and retention of the employees.

In addition to this, the study also has few other sub objectives related with the leadership styles and employee retention and satisfaction. Hence, to address those sub questions and the principal objective, the study will carry out an in-depth theoretical analysis about the area of concern. The study is worth exploring further as it has the potential to open up new dimensions. Moreover, the study also has the ability to make recommendations about how a company can retain the best work force.

Before that it essential to throw some light on the different leadership styles. The next section will therefore highlight the different leadership style practised by the managers (Mach and McEvoy, 2008; Fink, 2009; Hart, 1998). Leadership Style The leadership style of an organization is a crucial element towards attaining its objective. Moreover, to get a hold over the human resource and making the employees committed towards the work, appropriate leadership styles are important. Leadership styles in general are defined as the styled adopted by leaders in directing, motivating, controlling employees.

In general there are six types of leadership style namely authoritarian, paternalistic Leadership, Democratic, Laissez-faire, Transactional and Transformational