Effect Of Leadership Traits On Employee Performance Commerce Essay

Within every company a leader is needed. Sometimes even more than one, when a company has grown and therefore exists out of multiple divisions. These leaders are of import because they give the company a way to caput to, and teach the employees to make this in the best possible manner. Particularly when a company has merely been started, it is really of import to do certain that everyone does his very best and knows precisely what to make in order to diminish the opportunity of failure of the new venture.

Past research has shown that entrepreneurship forms a important portion of every economic system in many ways ( Van Praag & A ; Versloot, 2007 ) . For illustration, the generating of employment ( Sutton, 1997 ) , economic growing through entrepreneurship ( Carry & A ; Thurik, 2003 ) , the importance of little and average sized houses associating to invention ( Biggs, 2002 ) and economic value creative activity ( Parker, 2004 ) . Therefore, it is really of import to cognize every bit much about this whole procedure as possible. This can merely lend to increasing the per centum of successfully started ventures. Due to the fiscal crisis in 2009, the per centum of failures in new ventures has been really high ( Graydon, 2010 ) . As this has great effects for the economic system, it is of import that this per centum goes down in the coming old ages. A batch of research has already been done on this topic, but clear grounds on leading in combination with enterprisers that start up a new company is still losing.

In order to acquire to cognize more about the leading of enterprisers, this research is aimed at the enterprisers in Amsterdam who have merely started their ain company. The research is done to acquire an reply to the inquiry of what leading traits lead to the biggest opportunity of conveying the new venture to a success. In Amsterdam, there are a batch of new start-ups every twelvemonth and together with the easy handiness to these enterprisers and their companies ; this environing signifiers an outstanding possibility to make research in. Hopefully this survey leads to a more clear vision on the success traits of enterprisers who have to move every bit leaders as good in conveying their start-ups to a success.

The following subdivision, which is the theoretical model, will discourse the bing literature on leading traits, the features that distinguish an enterpriser from a non-entrepreneur and recent literature on leading combined with entrepreneurship. Section three is the methodological analysis subdivision and discusses everything that is of import in making this research. For illustration, the research method that is traveling to be used, and the features of the research.

Theoretical model

2.1 Leadership

In the yesteryear, there have been 100s of articles written on leading. In the 1950 ‘s, Bales based his research on the differentiation between two different leading attacks, viz. : task-oriented manner and the interpersonally oriented manner. The task-oriented manner is frequently associated with the ‘initiation of construction ‘ as construction was what it was all about. The interpersonally oriented manner is related with consideration, and was based on common relationships with followings and so on ( Eagly & A ; Johannesen-Schmidt, 2001 ) . Later on, research was frequently aimed at the differentiation between democratic and bossy leading ( Vroom & A ; Yetton, 1973 ) and therefore differentiated leaders who allowed followings to take part in determination devising and those who did non ( Eagly & A ; Johannesen-Schmidt, 2001 ) . Burns ( 1978 ) argued that some of import leading traits were losing. Three new types of leading were recognized. The transformational leader was person who stood for individualized consideration, rational stimulation, inspirational motive and idealized influence ( Saunders et al. , 2007 ) . The 2nd type was the transactional leader, person who brought the contingent wages system, to merely honor followings if they had performed good plenty, and merely changed something when it did non work, which was called direction by exclusion ( Saunders et al. , 2007 ) . The last type was the Individualistic leader. This leader was person who likely did non hold adequate accomplishments or motive and therefore avoided doing determinations and being responsible.

Apart from spliting leaders into the manners they follow, the can be differentiated on leading traits. There are besides many surveies aimed at the features of people that make them a leader. Although none of these results were precisely the same, the most articles did come to the similar features that differentiate a leader from person who is non. Stogdill ( 1974 ) and House & A ; Baetz ( 1979 ) showed that leaders tend to be higher in ( 1 ) intelligence, ( 2 ) laterality, ( 3 ) assurance, ( 4 ) energy and ( 5 ) cognition of the undertaking than non-leaders. Throughout these surveies, the most of import inquiry was what the most of import features of a born leader are. But research besides showed that it is non about holding these features, but how to utilize them in a manner that makes you effectual as a leader. Therefore, Kouzes and Posner ( 2007 ) did research on the leading behavior and found that this behavior can be identified through five factors, viz. ( 1 ) animating a vision that is shared, ( 2 ) patterning the manner, ( 3 ) promoting the bosom of the followings, ( 4 ) disputing the procedure and ( 5 ) enabling others to move.

Different types of undertakings frequently ask for different leader features and behaviors. Therefore it is of import that a leader knows how to accommodate to certain fortunes. This makes him other than his followings and therefore person with whom they can interact. Fiedler ( 1967 ) argues through his eventuality theory that the ultimate leading behavior is dependent upon the state of affairs. Thereby, Fiedler has besides stated that experience is more of import than intelligence in some hard state of affairss. This means that leaders besides grow as they gain working experience, and utilize this experience in state of affairss that require more than unconditioned traits. This is really of import because of the fact that the leader influences all kinds of employee variables like organisational committedness, occupation satisfaction, public presentation and so on. ( Kouzes & A ; Posner, 2007 ) .

Research done on leading has a batch of things in common with research in other Fieldss. One illustration is the research on traits of a specific type of individual. This research is besides done in the field of employees as followings of leaders, but besides for illustration the features of employees in combination with occupation satisfaction and organisational committedness. Another illustration is research on features of people with regard to working-groups or calling direction. One of the most similar types of research compared to surveies on leading is the research on enterprisers. What are the traits of a existent enterpriser? Why is one enterpriser more successful so another? In a batch of ways this research is comparable.

2.2 Entrepreneurship

The research on entrepreneurship and leading is really similar in many ways ( Ensley et al. , 2006 ) . The facet that is most similar is the hunt for traits that makes person good and efficient in his function. This type of research is called the “ traits attack ” . Throughout the old ages, a batch of research was done on two facets within this traits attack. The first facet is the consequence of the state of affairs on enterprisers ( e.g. Kirzner, 1997 ) or leaders ( e.g. Wofford and Liska, 1993 ) and the 2nd facet is the behavior of enterprisers ( e.g. Shaver and Scott, 1991 ) or leaders ( e.g. Bass, 1990 ) .

Merely like with a leader, an enterpriser besides influences the public presentation of his organisation. He can be the 1 who makes the difference between success and failure of the new venture. Some research workers say that this is due to his features that divide him from others, such as risk-taking leaning ( Stewart & A ; Roth, 2001 ) , high self-efficacy ( Chen, Greene & A ; Crick, 1998 ) or to detect chances that others do non ( Alvarez & A ; Busenitz, 2001 ) . But other research workers say that it is due to the behavior of the enterpriser that concerns increase the opportunities to win, so how he uses these features ( Bass, 1990 ) . Either manner, a batch of similarities are found between leaders and enterprisers, which makes it interesting to analyze the combination of the two.

2.3 Uniting leading with entrepreneurship

As leaders and enterprisers have a batch in common, it is non a surprise to cognize that the two can be combined. In fact, research has showed that being a leader while get downing a new venture, and therefore being an enterpriser, is of import in order to acquire the most out of the company. As stated above, leaders are able to act upon facets such as the motive, productiveness, and committedness of employees and therefore act upon the overall public presentation ( Kouzes & A ; Posner, 2007 ) . As enterprisers are depending to a great extent on the employees in the beginning stage of the new venture, it is of import to convey up the best out of these employees ( aˆ¦ . ) .

Different types of leaders have different kinds of influence on their followings. This is an of import thing to maintain in head while making research. Each type of leading has its ain advantages and disadvantages and therefore respond different to a specific state of affairs. For illustration, transformational and magnetic leading are frequently related to a better public presentation of workgroups and organisations ( Saunders et al. , 2007 ) . Another illustration is that a transformational leader wants to be seen as ‘the great leader ‘ and does non pay any attending to the state of affairs or his followings, while a democratic leader is person who joins the group and works every bit difficult as the remainder ( Saunders et al. , 2007 ) . In order to allow the employees work every bit efficient as possible it is of import to cognize what type of leader tantrums best in the start-up.

Up till now there has been little old research on the combination of leading traits and entrepreneurship. Therefore there are few researches to trust on for now. What is utile is research that has been done on leading in different state of affairss. One of the most of import in this field is that of Fiedler, who did research on different factors act uponing leading public presentation. For illustration, his cognitive research theory, which was aimed at stressful-situations, leading intelligence and leading experience. Although non everyone was to the full convinced by these theories ( Vecchio, 1992 ) , there have non been any cardinal challenges of the theory.


3.1 Research scene

The scene of this research is based on Amsterdam and its milieus. This is because of the fact that these companies are easy accessible for the research worker. Thereby comes that a batch of the enterprisers in Amsterdam are united in several associations. For illustration, the ‘Ondernemersgroep Amsterdam ‘ , ‘het Ondernemershuis ‘ and MKB Groot Amsterdam. Furthermore, the ‘Kamer new wave Koophandel ‘ , which is Dutch for Chamber of Commerce, is located near the Centre of the metropolis. These associations will likely be able to give all the information that is needed for this research.

3.2 Research features

This research will be done through utilizing a cross-sectional attack. This can be described as a ‘snapshot ‘ clip skyline. Due to clip restraints and informations handiness it is likely the best option to utilize. Of class, being able to analyze alterations and developments of certain companies over clip, and therefore utilizing a longitudinal attack, would likely take to even more specified consequences ( Saunders et al. , 2007 ) , but this option would take excessively much clip. So, informations from companies that are in their first or 2nd twelvemonth of concern will be used, this information is still recent and should non take to much problem when roll uping. Thereby comes that the enterprisers should still be clearly cognizant of how they fulfilled their leading functions, with regard to the traits of their leading type. Clear should be that the degree of analysis is on the firm-level and that the research is practice-driven. This research could be valuable to the theoretical scientific discipline as it is seeking to acquire a better apprehension of certain phenomena, but besides in pattern where enterpriser and leader can larn from. By cognizing more about the traits of each function, and particularly for enterprisers how to unite the traits of these two functions could be really valuable ( Ensley et al. , 2006 ) . The social relevancy therefore plays a bigger function than the scientific relevancy.

The companies that are traveling to be used in this survey are likely all established within Amsterdam and its milieus. Besides, they have to be registered at one or more of the above mentioned associations so that the entree to the enterprisers and necessary informations will be available. Variables used in this survey will be traits of enterprisers as they are besides perceived as leaders within their company, and the company ‘s public presentation. For many companies the term of one or two old ages after start-up will likely be excessively short to be able to talk of a success or failure of the company. Therefore, the company ‘s public presentation as in being good on path compared to what was planned earlier, the opportunity of lasting the following old ages, and employee public presentation will be used to mensurate the company ‘s state of affairs.

3.3 Restrictions

The end of this research is to acquire an indicant of the effects of leading traits on the public presentation of little entrepreneurial ventures that have merely started. In this first bowl, it is of import to allow the employees be every bit efficient as possible, as most of the resources such as money and clip are limited and rivals are frequently watching the company closely to do usage of any errors made. A quantitative attack will be used through looking at company ‘s public presentation in relation to leading traits of the enterprisers. Hopefully, afterwards the cognition on this particular topic will be deepened and be utile for scientific discipline every bit good as in pattern. For illustration, a relation between the traits of a leader that inspires his employees to work towards a certain end every bit efficient as possible is extremely related to a good executing start-up.

In Figure 1, a schematical position on the research is given. The normal line between ‘leadership traits ‘ and ‘start-up public presentation ‘ is the chief relation that will be investigated in this research. The flecked lines, between ‘leadership traits ‘ and employee public presentation, and between ’employee public presentation ‘ and start-up public presentation ‘ will likely besides be investigated, although this is still a spot unsure because of the fact that garnering the information will be comparatively hard and there may besides be excessively many other facets that could act upon this relationship. Therefore, a spot more research has to be done foremost on the ’employee public presentation ‘ as a moderating/mediating variable.

Figure 1. A schematical position on the variables and their relation to each other.

An advantage of this survey can be that the combination of leading and entrepreneurship on the degree of little start-ups is still comparatively bleary and therefore has the possibility to open up a new portion of this field. Thereby comes that this research is chiefly aimed to better the cognition of enterprisers on leading traits that are helpful in the beginning stage of a company, which means that the state of affairs can be seen from the houses point of position, alternatively of a theoretical point of position which sometimes differs excessively much from world ( Saunders at al. , 2007 ) .

This survey will hold a batch of restrictions. One of them is the sample size. Through bounds on clip and resources it will be impossible to acquire a really big sample size. Amsterdam will be taken as the chief country of the start-ups of which informations will be gathered. Thereby comes, that there is a bound on the sum of start-ups, as the figure of new ventures depend on all kinds of variables and conditions. Besides, non all informations may be available for every company due to privacy grounds or unwillingness to collaborate of enterprisers. Another restriction can be the usage of Amsterdam as the chief part of entrepreneurial activity. Several factors within Amsterdam and its surrounding can be of influence on the consequences and therefore consequences do non hold to be generalizable in other parts of the universe. Amsterdam being a big metropolis, the capital of the Netherlands, and for illustration a big tourer attractive force. Furthermore, This research is aimed at start-ups and therefore is non generalizable for every company, as several resources such as clip, money and employees are frequently really limited.

Small Planning tabular array


Get downing day of the month

Completing day of the month

Discoursing the subject, with Ms. van Eerde and supervisor


Bettering the literature reappraisal and methodological analysis


Middle of February

Get downing with study ‘s etc, because this will ever take longer than expected.

Middle of February

Middle of March

Gathering informations through studies

Middle of March

Get downing of April

Processing the informations, consequences subdivision

Get downing of April

End of April

Writing the Conclusion and Discussion subdivision

End of April

End of May

I know that this planning is really optimistic, but I have to get down with everything every bit shortly as possible, as I know from past experience that everything takes much longer than panned. Therefore, I set my coating day of the month early, as this will certainly be postponed.