Transactional Leadership Theories
Transactional Leadership Theories
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Leadership Styles at Ooredoo Oman2
Ooredoo Group, which is based in Qatar. Curranty it has almost 50% of telecom market share in
Oman. It provides mobile, fixed and Internet service for residential and business customers
(Ooredoo, 2015, n.p). Any leadership style of an individual or an organization can be customarily
set of traits, behaviors, and attitudes among its constituents (Givens, R., 2008, 5). Based on
recurrence and frequency of these traits and behaviors, a specific leadership can be defined
which exemplify these behaviors. Based on this paradigm, behaviors and characters of leadership
style and practices that are carried out in Ooredoo Oman clearly manifest the Transactional
Leadership Style (Ooredoo, 2012, n.p). To elaborate more on this and to support the above claim,
the rest of this introduction will give examples and provide evidence of different activates in
and punishments (disciplines) approach in this way, the transactional leader is not anticipating
changing or enhancing the future, but simply hoping that things to continue as before. This task
and project completion driven style of leadership where things should be done in a deliberate and
organized way is clearly visible in Ooredoo Oman. The first of these transactional leadership
attitudes to be seen in Ooredoo Oman is its motivational approach. In this type of leadership,
extrinsic motivation is implemented. With this type of motivation, as the case is here in Ooredoo
Oman, desired performance and results are evoked by motivating the employees externally.
Employees will be rewarded for doing the needed job and getting the expected results and
punished otherwise.
Leadership Styles at Ooredoo Oman3
Also, Refusal to new ideas and the resistance of change is an apparent attribute in
Ooredoo Oman Management style to some extent. Directors and managers have a have a
missing. Moreover and as a result of this type of motivation, creativity is hindered (Kim, S. &
Yoon, G., 2015, 152). Individual thoughts are not welcome generally. Trusting that the things are
as great as they are, leadership in Ooredoo Oman doesn’t encourage innovative thinking.
Another symptom of this type of leadership is the rewarding the employees based on their end of
the year performance rating. In the light of particular set objectives and whether it is reaching the
anticipated results and targets, individuals are kept under scrutiny. Any poor performance will be
punished by means of going under specific probation path. Likewise, accomplishing the desired
tasks will be awarded with bonuses and promotion in some very cases.
Micromanagement is common among managers and section heads in Ooredoo Oman. In
this mandated environment, the managers are the ones who make decisions and the employees
need to carry out and execute these decisions. This continues with demanding for periodic and
unnecessary updates on the status of running projects and tasks. This imposing behavior is a
source of a great annoyance for employees who feel that they would have performed better if
they were given freedom to decide the way they carry out tasks. Another visible trait of
leadership style in Ooredoo is that it is very passive quite passive because the focus is on
maintaining status quo. The leader tends only to react to things that happen a the time and is not
proactive in taking preventive or remedial steps to solving that problem. One definitive behavior
associated with transactional behavior is establishing a criterion which is used for assessing and
rewarding performance. Practicality and pragmatism is a known and a clear characteristic feature
in leadership style in Ooredoo Oman The approach to solving problems is one of pragmatism,
and they take all realistic constraints and opportunities into account. Rigid Organizational
Leadership Styles at Ooredoo Oman4
hierarchy and putting a lot of importance on corporate structure and culture are apparent within
The definition offered by Robbins about what transactional mode of leadership was in the
organization encompassed leaders who are primarily led by the social exchanges which they
manipulate in the form of transactions (Robbins, 2007, p.475). Among the components of what
transactional leadership has is the contingent rewards, and management exception (Birasnav, M.,
Mittal, R. & Loughlin S, 2015, 207: Chaudhry, A., & Javed, H., 2012, 2). The contingent rewards
are usually directed related to the performance of the employees. The logic behind this reasoning
is that the rewards provided for the employees are enumerated based on the efforts of the
employees in that particular company. The management in this case and the leaders of the
various departments are the ones that communicate what the employees have to do in order to
receive these rewards and the basis they use in order to pass judgment (Kasprzhak, A et.al, 2015,
959). Management by exception refers to the procesFs of taking note of any deviations from the
stipulated rules and regulations of the organization. Any variations will be amended after a
decision to rule whether corrective action is necessary (Harms, P., & Credé, M., 2010, 6). The
transactional leadership roles follow that there needs be no correction on the mission if it does
not interfere with the organization goals. It is only when the organizational goals are not being
met, at the time provided and at a relatively reasonable cost that interference occurs.
The organization uses social behavior in a retrospective with the intention of maximizing
the company benefits and at relatively low costs. This is because the organization requires that
all leaders motivate their employees so that they can perform their delegated duties and at the
same time maintaining high levels of responsibility. This form of leadership makes it quite easy
Leadership Styles at Ooredoo Oman5
for the people working there to understand their individual goals, and understand their needs so
that they can work even harder to achieve the organizational rewards. This means that people
who work way better than anticipated are rewarded for their efforts while those that fail to meet
the minimum requirements of their job outputs receive punishments (Aarons, G., 2006, 1164).
Subordinates are also assisted in areas where they find it difficult to carry out their respective
roles by the organization’s management which is an added advantage to the organization since
communication and accomplishment of company goals is also made easier. There are other
extrinsic factors which may result in minimal compliance from the employees of an organization.
They may range from the structure, the goals and the organization’s culture and that is why
work within the systems in place in the organization where they can consequently negotiate them
in a manner that assists in fulfilling the goals of the organization. The transactional organization
is such that the people involved have to think outside the box when they are solving problems
using methods and procedures that are fixed even with the changing business environments.
However, as much as this may be true, transactional leadership is mainly a passive form of
leadership, and they solve problems as they arise and there are no provisions or safety nets for
such type of occurring problems. Transactional leadership is associated with a behavior by the
management where they reward their followers using a criterion that helps maintain their status
quo
The transactional leadership in any organization uses the Maslow’s hierarchy of needs
context to fulfill its requirements. These requirements are such that there needs to be a situation
where satisfaction is the end goal of an organization (Haider, M.H. & Riaz, A., 2010, 31). The
transactional leaders in the organization thus have to put much focus on the lower levels of the
hierarchy as they are most crucial as to the success of the company (Hargis, M., John D., & Chris
P., 53). Understanding the conceptual framework surrounding the transactional leadership model,
it uses the reward system to get positive outcomes in the hierarchy. This is the exchange model
most common for most organizations that use the transaction leadership. It so happens that most
organizations using this leadership system can conversely come up with a system for punishing
the poor performers in the organization. Any individual that is found to have consecutive
negative outcomes is dealt with accordingly in a bid to act as a lesson and motivate other
employees to push their performance rates even higher. One of the ways that the Maslow’s
hierarchy of needs has been ensured, especially on the lower levels for those organizations using
the transactional leadership is by stressing the specific task performance in the company. When
transactional leadership is made use of in a company, then the transactional leaders can focus on
a specific portion of the production process which makes it an effective leadership model.
process of productions rather than the ideas that are thought of ahead of time. These
organizations are more interested in the contingent rewards which are sometimes referred as
reinforcements or the penalizations, also known as negative reinforcement (Birasnav, M., Mittal,
R. & Loughlin,S, 2015, 208). When activities in such an organization are completed in record
time, or when the subordinate staff are involved in the process and work at a good pace towards
completion, the contingent reward is then awarded and could be in monetary terms or other
Leadership Styles at Ooredoo Oman7
forms such as praise. Punishments are mostly suspensions with the hope that the individuals will
do some self-searching as to the weakness and strengths they possess and as to what they need to
improve on more to catch up with the pace of the organization. The instances this would happen
is when production falls short of the performance quality expected, and the goals consequently
go unachieved (Hargis, M., John D., & Chris P., 52). This is not usually good for the health of the
company when goals, and sometimes tasks go unfinished within the time provided. The
punishments are often handed out by the management-by-exception since within the production
process of the organization, there is the possibility of some things going wrong which forms the
When focusing on the management by exception, it is interesting to note that that there
are two routes that it assumes. The first is the active, and the other is the passive route (Harms,
P., & Credé, M., 2010, 6). The active management-by-exception requires that all the leaders
involved should make sure that they make continuous scrutiny of the performance of their
subordinates and are free to make any changes that they deem necessary or corrective action
where there are any errors involved. On the other hand, the passive management-by-exception
leadership model requires that the leaders wait for company issues to arise so that they can begin
The transactional leadership model follows that there is some form of communication
between the organization management and their employees or in this case, their followers. With
that said, the quality of this relationship between the employees and their supervisors also
matters when the organization goals are at stake. This concept is referred to as the leader-member
Leadership Styles at Ooredoo Oman8
exchange with regard to the transaction leadership theory (Kim, C., &Park, W., 2015, 1701).
Based on the relationship under the transactional leadership theory, the time pressures that the
organization piles up on the supervisors in order to meet deadlines and production rates, the
supervisors find themselves establishing special relationships with portions of their employees
and people following their directions. As a result, there are two forms of groups: in-group and
out-group. The relationships between these two groups are usually very stable over time (Kim,
C., &Park, W., 2015, 1702). There has been an apparent report concerning the positive
relationship between these groups and the manner in which transactional leadership is carried
transactional leadership style in the business as well as the industry. The reason is that
transactional leadership maintains and offers support for the status quo as it upholds the mutual
self-interests of the leaders and followers. When the followers meet the expectations of the
leaders, they are rewarded positively, and if they fail to comply, there are negative consequences
as well. There is an overall relationship found with the transactional behavior especially with the
contingent reward as it is found to be in correlation with attitudes and fosters better performance
in the organization. The organizations that use transactional models of leadership, their intentions
are to permeate the group setting which makes the leadership available to all the members of that
particular interest group. This reason alone is what makes the transactional leadership model an
Organizations that rely on transactional leadership understand that it works best when
there is a process of exchange between the people in charge and the people that work under
them. It is important that the needs of the subordinates are understood if there is ever going to be
employees, organizations come up with incentives such as financial ones and others like
organizational recognition in order to motivate their employees (Asencio, H.& Mujkic, E., 2016,
159). These controlled aspects do not only get them the desired performance rate that they desire
to keep the organization afloat, but it also gets to have desirable behaviors from their employees.
Through this way, the needs of the organization and the employees are all met concurrently.
Following this, a valid argument can be extrapolated from this information. When the
organization engages in the activities provided by leveraging the transactional leadership model,
the employees of that particular organization associate a level of trust with the organization
(Asencio, H. & Mujkic, E., 2016, 159: Kasprzhak, A et. Al, 959). The reason that this is so
emanates from the fact that when the leader’s consistency in ensuring that thy reward their
employees for extraordinary performance, then the employees will develop faith in the system of
organization. By using the contingent rewards and management by exception, the organization
ensures that all employees, both high and low performing, have some confidence in working
with the organization in achieving its objectives. There is empirical evidence which supports that
most of the managements in organizations that use transactional leadership models are more
and the innovative nature of organizations requires that we first review what innovative behavior
Leadership Styles at Ooredoo Oman10
entails. In this case, innovative behavior takes into account a lot of processes through which
problems are recognized, and ideas are generated so that the problem can be solved (Pieterse,
A.et.al, 2010, 610). In order to identify the best solution fit for a problem, support ideas have to
be generated as well and finally, implementation. In order to be able to have an innovative sense
in the organization, there needs to be creativity which is an integral part of the innovative
behavior. Innovative behavior is largely a motivational issue as it is not only influenced by skills,
abilities, and knowledge. Since it is more of a motivational issue, it has become of considerable
organizations is negatively related to innovative behavior since its main focus was on in-role
performance (Pieterse, A.et.al, 2010, 611). It is less focused on novel activities which could be
detrimental for the jobs that do not require innovation to be incorporated in the job description.
there are set expectations by the management and the leaders have to keep clarifying these
expectations as well as giving respective feedback as to how these expectations will be met.
These attributes are what show the predilections of the people in authority for these organizations
(Pieterse, A.et.al, 2010, 613). In addition to this, the preferences as forwarded by these leaders is
bound to bring up several and variant perceptions among the followers since it diverts them from
their innovative endeavors while still working for the organization. The negative thing about this
demotivating to its employees which end up reducing the innovative behavior of the employees.
psychological empowerment is a psychological state which resides within all individuals which
Leadership Styles at Ooredoo Oman11
reflects on the active orientation of the roles they have at work. It psychological empowerment is
thus more focused on the delegation of responsibilities at the workplace (Pieterse, A.et.al, 2010,
613).
construct which arises when management in the organization has to initiate and regulate the
actions to be done in the production process (Aarons, G.A., 2006, 1164). The management, in
this case, should be able to impact good motivational aspects that make sure that the job is
completed well. Individuals who are psychologically empowered find themselves to be more
competent, facilitate proactive behavior, act independently, and are always showing initiative.
the followers, taking advantage of the in-role performance, it is also expected to monitor if these
expectations are met. Transactional leadership, therefore, provides direction and makes sure that
the employees understand the importance of in-role performance and should be taken more
seriously than innovation in the organization. Consequently, individuals who are more highly
empowered may find this controlling nature of transactional leadership as demotivating and thus
This section of this article will discuss the theories that focus on the organizations which
use transactional conforming processes especially if they have to come up with a smaller number
of subordinates to lead more effectively. The social exchange theory arising from the use of
transactional leadership theories stress that the exchange of benefits and favors for the
management and the employees may lead to mutual attractions to each other. The ability for
leaders to establish in-group relationships with their subordinates is highly reliant on the ability
Leadership Styles at Ooredoo Oman12
to create favorable relationships with the leader above him (Johnson, P., & Carland, J., 2007, 5).
The ability for leaders to have productive relationships with the bosses above them makes them
more competent and to provide even more valuable information along the hierarchy. Through
this, it becomes possible for the management with the transactional style of leadership to become
more permissive when making decisions critical to the organization which makes their input
more supportive and consequently putting more consideration to the subordinates’ needs. The
two groups that are involved in the organization based on the transactional model are the in-
group and out-group members. The relationship with the in-group members proves to be very
(Johnson, P., & Carland, J., 2007, 6). The out-group members of the organization often have
lower levels of mutual relationship between people in authority and those under it and are purely
reliant on how authority is exercised. In order satisfy the terms of the group relationship, the
members must comply with the formal requirements the organization puts in place.
transactional leadership model in its leadership. The main characteristics of this leadership are
that they inhibit innovation which affects the confidence of their employees. Another
characteristic is that the performance is monitored and reviewed annually after the end of the
trading period. The company conducts micromanagement which creates an imposing behavior by
the management and a hostile feeling among the employees who think they would work better if
they are not micromanaged like so. Another characteristic common to the leadership style of the
company is that it conducts passive problem solving and only react to things when they happen.
Ooredoo believes in realism when making decisions, and the organization has a rigid hierarchy
Leadership Styles at Ooredoo Oman13
system as they place a lot of importance on company structure and culture. All of these aspects
have been discussed in the theory section. However, this creates a problem as some of the
measures that the company takes to achieve its goals may indeed be detrimental to its workforce
as employees require to remain motivated at all times if they are to remain productive.
easier when the organization is able to retain their employees. Leadership has been known to the
be sole factor that determines the turnover intentions of the organization. However, in recent
studies, more insight has been provided which shows that the form of leadership an organization
takes up may indeed have some influence on the employee intention to stay with the organization
or leave. Following the Regulatory fit theory, the different styles of leadership may influence the
decision by employees to place much value in the work they do, and eventually, the intention to
stay or leave the organization. Of all the leadership theories that have been researched in the past,
there has been a significant interest in the transactional and transformational leadership styles.
Adopting either of the two styles of leadership will help an organization achieve success in the
long run. We have already discussed transactional leadership for the Ooredoo Oman and
discovered that there are shortcomings such as the lack of innovation and confidence and the
annoyance that micromanagement presents. Therefore, it is only logical that the transformational
The transformational leadership is one that motivates all the employees as the form of
leadership always appeals to higher ideals and moral values by the employees. In this situation,
the organization is able to set goals and a vision and requires that the employees and those under
the authority in all departments accept the credibility of those in authority (Harms, P., & Credé,
M., 2010, 6). Transformational leadership is able to motivate and at the same time inspire the
Leadership Styles at Ooredoo Oman14
employees to perform beyond the expectations as set by organization’s management. This thus
transforms the individuals and at the same time, the organization. Through this type of
leadership, it becomes possible for employees to rise above their self-interest (Haider, M.H. and
Riaz, A., 2010, 30). They are thus able to alter their interests, values, morale and ideals which
motivate them to increase their productivity rate. Transformational leadership also allows for
some creativity thus promoting innovations as new ideas are welcomed by management if they
add positive value to the organization. Another central thinking towards the transformational
Change is good for the organization as the business world is constantly changing and the
organization needs to understand that the rigid policies brought about by transactional leadership
may limit the activities that the organization is involved in. Innovation, on the other hand, may
The acquired knowledge about the transactional and transformational leadership models
make it easier to identify the changes that Ooredoo Oman Company needs to make so as to
operate efficiently. An ideal strategy that the company can adopt is an integrated transactional
and transformation strategy. The reason is that the transaction approach they use at Ooredoo
Oman is an inhibitory factor to creativity. Whatever the management puts across has to be
followed to the latter. In short, the management dictates the level of achievement and
performance is rewarded based on how fast and the quality of the work done. However, if
Ooredo were to adopt a transformational method of leadership, then the company would be sure
that the employees would go out of their way to achieving even more than the set targets. This is
a positive outcome for both the organization and the employees (Kang, J., Solomon, G., &Choi,
D., 2015, 532). In addition to this, the rate at which micromanagement is done by the persons in
Leadership Styles at Ooredoo Oman15
power at Ooregon Oman will reduce greatly, and the employees will have a better sense of
freedom where they can conduct their responsibilities peacefully and at ease.
Another problem that Ooregon needs to address is the issue of change and
is important that they understand what goes on in their environment and try to adjust to these
changes. However, it will be close to impossible to do this when the company is running a
transactional leadership model. In addition to this, the employees will feel even more confident
while dealing with a flexible system of leadership which will also increase the level of trust they
place on their organization (Asencio, H. & Mujkic, E., 2016, 162). These factors will increase
the number of retainer employees by the organization. Change in the company can also be
achieved by motivating the employees to become creative which will help come up with
solutions for problems that are bound to come up in the future. A passive method of operation is
better than a passive one due to the application of resources and other materials needed to
implement organization policies effectively (Kim, S. & Yoon, G., 2015, 150).
Personal Reflection
and his opinions on leadership. The other was with the line manager at Haier brand. The purpose
of the interviews was to get a perspective from a person in authority and one under authority as
to what the ideal leadership would be in an organization. Upon completion of my interview with
the two persons under study, I notice that the answers were overlapping two themes. The first
theme was motivation and the second theme was inclusion. These two things are responsible for
creating a healthy working environment according to the manager. My colleague believes that
once people have mastered how to do this, then it becomes easier to be in any leadership
Leadership Styles at Ooredoo Oman16
position. He has recommended that any person willing to be a leader should be passionate and be
self-motivated to reach the goals they would want to achieve. These are also character traits that
people in business leadership roles have to embrace. A very good place where people are
pursuing such high esteem jobs can benchmark such qualities is in the leaders they meet at the
workplace. The line manager made me understand that there are several challenges that a
manager is faced with especially in the course of the business process (Hambley, L., O’Neill, T.
& Kline, T., 2007, 3). This is due to the dynamic changes that might present new challenges that
the leader may not have encountered before. It requires that they work a way through the
situation so that they can also better their team in the process. For this reason, we will focus on
I have come to understand that leadership is the position whereby the individual is
responsible for influencing the people under him/her to work into achieving a given set of goals.
There are formal and informal leaders in a business setting. The difference between both leaders
is that one has a position of authority, and the other one has none, but they still can influence
others using personal powers which is the category I place myself. As a potential leader, I am
certain that I possess integrity, intelligence, high self-esteem, flexible and open to experience,
conscientious and extravert (Vigoda-Gadot, E., 2007, 662). I have come to understand that it is
important for people looking towards being in such positions to figure out whether their
achievements are based on the tasks of the business or the people who perform these tasks, in
this case, the employees. This is important because, when one makes decisions, they could either
employee proportions critically so that they can understand whether to use either one of the three
Leadership Styles at Ooredoo Oman17
business decision models; these are the authoritarian, democratic and laissez-faire methods of
decision making.
I understand that the level of performance that any business receives from any given
activity comes from the motivation that comes with the job specification mostly, and then the
availability of resources and the ability to do the work (Obiwuru, T., 100). Motivation in the
workplace requires some sort of equity for all stakeholders. This is sometimes a hard thing for
me because digging through all the qualifications can be hard, and sometimes doing a lot of bulk
can sometimes be tedious for me. However, I need to overcome this negative trait since one thing
is for sure, the vacant position has to be filled by the best applicant eventually. Moreover, upon
admission, equal pay should be used when considering remunerations based on the equal input
one has put into the processes of the firm/organization/industry. Workers should, therefore, be
taught how to harness their abilities and receive support from management so as to achieve the
clearly outlined performance goals in the workplace (Obiwuru, T. er.al, 102). This leads the
manager to the point of asking how they can make the jobs they have posted vacant to be more
Once a business leader has understood all these concepts, going about the business
activities of the day can be quite easy, and these concepts become helpful because it is
motivation and good leadership that helps employees work to their level bests so that the output
is maximized. An organizational leader is assertive and flexible as we have noted earlier and
therefore means that they are open to change. Empowering the employees in the workplace and
allowing them to engage in the decision-making process makes them feel that the business and
the management cares about their welfare. This creates a sense of trust between both parties and
work together more efficiently to reach a common goal (El Amouri, S., & O’Neill, S., 2014,
Leadership Styles at Ooredoo Oman18
137). The management should also ensure that they maintain an equitable environment all
throughout the course of the employer to employee relationship and should provide remuneration
that is equal to the workload and the effort given. This effort should increase the need for
I think I have it all wrong on how being motivated and performance works, but I have
gained insights from the two interviews which has allowed me to understand that it is not always
easy to be a leader. I plan on being an entrepreneur as my future career, and there are several
things that I have picked up from these lessons that my colleague and line manager imparted in
me that I was not aware of before. Among them is the manner in which we can use to attract and
maintain employees at the workplace. The decision to do this should be based on the basis of
inclusion and diversity and at the same time maintain equity. A leader should be able to be a role
model to the employees and be able to create mechanisms through which they can communicate
and receive feedback from their employees (Hambley, L., O’Neill, T. & Kline, T., 2007, 3).
According to me, the employees are more important and would, therefore, come first in my
priority of activities, and the tasks that come along with that come later. Growing up, I have been
taught that people deserve gifts and rewards based on the results that one has and is highly
dependent on the effort that one gives. These are some of the factors that would motivate people
in the workplace. In light of this, a motivated workforce motivates the leader who is responsible
for manning them. I believe that these are the two thoughts that come to mind when I review the
Following this, I need to understand what it means to motivate other people and what it
changes in my character trait if I am to possess the full leadership skill set. This means that I will
Leadership Styles at Ooredoo Oman19
have to assume more leadership roles and be faced with the extreme situations where I will be
required to come up with solutions and strategies for the group I will be assigned to. In order to
understand the problems and difficult situations that leaders are faced with, it is only logic that I
go through the same process so that I can be experienced in the same. Through this, future
situations will be easier for me to handle. However, I think the most difficult transition for me is
to ensure inclusivity for all the employees under my authority. Making sure that only the most
comfortable working environment is present for the people are responsible for, I will ensure that
I have constant communication with them so that I can always be ahead of what they need in
order to carry out their work effectively. I believe that in doing so, working towards being a good
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