Today,organizations are in dire need of constructive notions and processes to enhancetheir project performance.
The management has to respond quickly in order tocounter the dynamic and contradicting expectations from the customers. At thesame time, they have to cope with the market environment that has become morecompetitive as a result of various companies searching for innovative methodsand approaches to upgrade their project performance (Anantatmula, 2010). Itis essential for the management department to create better and improved toolsfor boosting their overall performance of the projects.Theblend of leader’s behaviors and approaches that an individual adopts during thecompletion of a particular job and how he/she develops the connection withhis/her subordinates is referred to as the leadership style (Müller & Turner, 2007).
Thereare various approaches that an individual may use in order to have a particulartask completed within the stipulated timeframe and efficiently. Such forms ofleadership include but are not limited to the following: transformational,transactional and laissez-faire(Anantatmula, 2008). In order toenhance the performance of the project in any firm, the styles form the basisfor manager’s behaviors and approaches.
Transformationalstyle of leadership is linked to individuals who have strong and completerecognition with the leader and further identifies the need for change, thecreation of a new vision, and assemble commitment and dedication (Yang, Huang, &Wu, 2011). On the other hand, transactional style of leadershipis comprised of continuous interaction/swaps between the followers and the leaders (Yang,Wu, Wang, & Chin, 2012). It is essential to note thatactiveness and dynamism characterize both transactional and transformationalstyles of leadership (Anantatmula,2008). The two types of leadership styles are a complete opposite of thelaissez-faire approach which is inactive.
In mentioned form of leadership, anindividual keeps away from making absolute critical decisions of anorganization as a manager (Upadhya,2009). In project surroundings, the role of the manager is very vital,and, thus, he/she must exhibit behaviors that can impact the outcome of thefirm positively through nurturing of innovativeness and upsurge the overallproject performance.Inthe research, the project performance is viewed as multi-dimensional with bothshort and long-term measures (Anantatmula, 2010). The role of theleaders is critical when constructing the real atmosphere which is needed forthe promotion and deliverance of enhanced innovative projects. Moreover, theimpacts of transformational, laissez and transactional leadership styles on theperformance of the project have been discussed. The collection of the data in this research will be doneusing the quantitative research method and Survey method (Multifactor Leadership Questionnaire). Given the current research,projects can originate from different customers, implying that they could beseparate and unrelated (Yang et al.
, 2012). The present study willbe essential in filling the gap that exists through the re-examinationprocedure of the relative impacts of the three styles of leadership practicedby project managers in project performance in the software industry of third world countries.Commonly used termsLeadership style- astyle of providing direction, motivating people and implementing plansProject-A carefully planned enterprise that either belongs to an individual or a groupPerformance-theprocess of performing a particular task or jobStatementof the ProblemTheproject managers that apply the transformational style of leadership possess anemotional intelligence that proves to be vital in enhancing the actual projectperformance (Anantatmula, 2010).In a bid to find the gap in the study, it only requires the incorporation ofthe transformational style of leadership(Müller & Turner, 2007). However,in order to evaluate the effects of leadership styles on project performanceand fill the identified gap, all the three forms of leadership will be applied.The IT industry in the third worldcountries has been rising steadily with a significant growth being registered.The evidence for the observation has been highlighted in a report from theinternational IT telecommunication on Pakistan. Being a third world country,Pakistan has exceeded the expectation of the majority of the developedcountries by becoming the 20th most efficient and excellentdeveloper of software services in the world.
The demand for effectiveprograms to run the overall activities of the government and private firms hasconsiderably increased. Thus, the software development sector is increasinglybecoming important. The research under consideration is trying to explain whythe industry has become the central pillar of any organization in the world bystudying the effects of the three styles of leadership (Laissez-fair, transactionaland transformation) of the project managers on the performance of the projectin the software industry of third world countries (Müller & Turner, 2007). In a bid to identify and understand the need forof the study in the software industry, a prior survey was conducted on severalsoftware industries in third world countries which apply the styles ofleadership in enhancing their project performance (El Emam & Koru, 2008).
On theother hand, a few sectors which do not use any of the three techniques ofadministration in managing their projects. The result of the survey served as amotivation for constructing this research (Westlund, 2007). The reality that came across from theoutcome of the study indicated that over 90 percent of the software companiesacross all the third worldcountries do not practice any leadership styles and project management (Upadhya, 2009). However, thesurvey found that such organizations have technical project managers andproject leaders that are responsible for providing the customer with thespecifications but do not deal with intricate issues of software developmentand processes (El Emam & Koru,2008). Only 10 to 15 percent of the software companies in the countriesare efficiently utilizing project managers and their styles of leadership. Thestudy will focus on the following objectives:Ø Tolocate the direct impact of Laissez-faire style of leadership of managers onsoftware development projectsØ Tofacilitate the software organizations to upsurge their overall projectperformanceØ Tostrengthen the results obtained on software firmsThegap that exists in the prior studies found that constrained research has beenconducted and almost all of them only focus on the effects of the two majorstyles of leadership, i.
e., transactional and transformational while ignoringlaissez-fair leadership approach (Anantatmula,2008). It is vital to explore all the possible direct effects ofleadership styles on project performance at the industry level (El Emam & Koru, 2008). Thepurpose of the study will be to take a unique approach by investigating theimpact of full leadership model and the styles of the managers on projectperformance in the software industry in third world countries (Pakistan as acase study).
LiteratureReviewThe study will focus on providingprevious literature on the model of leadership styles of project managers andhow the approaches impact the performance of theprojectin the software industry.Leadership and Its ImportanceTheconcept of leadership is underpinned by the ability to visualize, enable, andstimulate the workers. It can be described as a composite process that has somelevel of uncertainties over the extent to which particular set of standards hasbeen set (Upadhya, 2009).It is recommended that individuals who have scientific skills and have limitedleadership abilities to deal with people efficiently. However, very fewpractical research that solely focuses on leadership styles in projectmanagement and the overall performance have been conducted for the past years.In the current fast moving globalized economy, clients have played asignificant role in boosting the approach to information and production ofgoods in many organizations across the continents. The increasing demands forproduct specifications, quality, repair, cost, and collections have played ascritical factors for enhancing the approaches used by project managers.
Thereality of the market has increased the competition and the anxieties of the organizationswhich in return has enlarged their efficiency and competence in theirperformance. Moreover, the demand for originality that is brought by projectmanagers is accompanied by process enhancements, progress, and maturity. Upadhya, (2009) argued that themodern atmosphere of the 21st century requires firms to continuouslyinvent by incorporating the shared understanding, creativity, and skills oftheir workers. Transformational leadership can be a useful tool to be appliedin rejoining and acquiring the knowledge possessed by the employees (Gumusluoglu & Ilsev, 2009).In order to avoid staff from working at cross-purposes, transformationalleaders play a vital role in providing the required direction, maintenance, andthe coordination of the highlighted tasks in an organization (Gumusluoglu & Ilsev, 2009).Various studies have indicated a positive correlation between the instigationof work structure from leaders and the performance of the creative activitieswhich lead to the success of project performance (Yang et al., 2012).
Althoughvarious works of literature have put much emphasis on both transformational andtransactional leadership styles, few writings critically explain how theyforecast the performance of a particular project. For example Turner and Müller (2005) indicatedthat transformational but not the transactional style of leadership of managersin financial sector completely predicted the unit performance in companies overa period of one year (Tipu, Ryan, & Fantazy, 2012). Moreover, they found thatlaissez-fair style of leadership was not ideal for a variety of organizationsand economies. In this regard, they stated that the model was more appropriatewhen used at small and micro levels of companies, while the other styles weremore suitable for medium size firms. Also Yang et al. (2011), made a comparison between the two majorstyles of leadership.
In their elaboration, they stated that transformationalstyle of leadership is inclined to the individual relationship with the workerswhile the transactional method is oriented to the job since the leaders arefocused on the outlined procedures as opposed to a transformational leader (Gumusluoglu & Ilsev, 2009). Transformationalleaders appoint workers’ values and beliefs in order to advance the wantedperformance by providing them with inspirations (Tipu et al., 2012). The leaders provide the staff withideological justifications in order to connect them with their characteristicsto that of the organization. Thus, the employees got motivated and inspired tocreate an escalated performance for their tasks/projects (Westlund, 2007). Thetransformational leaders amplify the staff’ understanding of the threshold setby the company in order to produce the desired results (Tipu et al.
, 2012). By doing so, the leaderlifts up the overall performance of the firm through effective handling of thevarious projects presented.Transactionalleaders develop clear and precise structures that make everything seem clearand in position for the employees. According to Yang et al.
(2011), they highlighted seven majorcharacteristics of transactional leadership. The approach of administrationgives a sense of encouragement to the workers through the provision ofemotional support in order to implement the needed change. The seven featuresinclude the following:Ø Theleader set the course and provide guidelinesØ Communicatethe need for the staffØ Takeinformed decision during uncertaintyØ Actas a change agentØ Setposition and arrange themØ Actas an example to othersØ Bringout the best in the employeesAccordingto Müller and Turner (2007), thereis a positive correlation between the provision of reward for the bestperforming employee and his/her performance.
The contributors to the study oftransactional leadership and management style introduced the reward system inorder to encourage and nurture better and improved performance positively (Westlund, 2007). Moreover,preceding studies have indicated that such form of leadership brings forthpositive impacts due to the dedication, and commitment of the subordinateswhich in return increases their performance in the assigned project.Thelaissez style of leadership had a negative correlation with the performance ofthe workers (Turner and Müller, 2005).Thus, the approach of administration is considered to be appropriate inmanaging the performance of the projects all the time. According to the studyconducted by Turner and Müller(2005), they indicated that passive management by exception and laissezapproach of leadership correlate positively with each other. However, whencompared with different leadership dimensions, it showed a negative correlation(El Emam & Koru, 2008).Therefore, the laissez style of leadership negatively influences the dependentresult variables.
When project managers are highly rated by the technique, bytheir staff and the extra effort employed exerted by workers, so tasksatisfaction and insights of a leader’s efficiency on a particular projectperformance is low.ConclusionProjectmanagers can visualize and lead a set of bright individuals in an environmentthat possess a shared organization or administration. The transformationalstyle of leadership has changed the involved procedures and practices frombeing seen on a perspective of power and agreement to promise, dedication,faithfulness, and recognition which in return has best-suited project frameworkand environment. ReferencesAnantatmula, V.
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