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My Phd Mid Candidature Review Progress Report. Can be used as a template for milestones for management PhDs.
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Progress Report
Completed in fulfilment of the requirement for mid-candidature review
The relationship between servant leadership and job satisfaction:
The moderating roles of the decision making process and organisational structure.
Nathan Eva (ID: 20294492)
Supervisors
Dr. Sen Sendjaya Dr. Daniel Prajogo
Date: 03/05/2012
CONTENTS
Table of Figures ........................................................................................................................................ i
Abstract ................................................................................................................................................... ii
1. The Current Reserach.......................................................................................................................... 1
1.1 Purpose of the Study ..................................................................................................................... 1
1.2 Justification for the Research ........................................................................................................ 2
1.3 Hypotheses ................................................................................................................................... 3
1.4 Methodology ................................................................................................................................. 5
1.4.1 Data Collection ....................................................................................................................... 6
1.4.2 Data Analysis .......................................................................................................................... 7
1.5 Discussion ...................................................................................................................................... 8
2. Progress ............................................................................................................................................... 9
2.1 Thesis Progression......................................................................................................................... 9
2.2 Timetable for Completion ........................................................................................................... 12
2.3 Deviations from Confirmation .................................................................................................... 14
2.4 Oral Presentation Component .................................................................................................... 15
References ............................................................................................................................................ 16
i
TABLE OF FIGURES
Figure 1.1 Conceptual Framework .......................................................................................................... 5
Figure 2.1 Confirmation Timetable ....................................................................................................... 13
Figure 2.2 Mid-Candidature Review Timetable .................................................................................... 13
ii
ABSTRACT
The effect of servant leadership on employee outcomes has garnered much attention recently (e.g.
Hoveida, Salari & Asemi, 2011; Ruiz, Ruiz & Martínez, 2011; Walumbwa, Hartnell & Oke, 2010). More
research however is needed to better understand the context and conditions for such process to
occur. This research explores the extent to which decision making process and organisational
structure influence the relationship between servant leadership and job satisfaction. Findings from
two studies using both experimental manipulations and organisational surveys suggest that both
moderators have significant effects on the servant leadership-job satisfaction link. Specifically,
servant leaders produced higher levels of job satisfaction amongst employees under a low
organisational structure and high levels of involvement within the organisation’s decision making
process. Theoretical and managerial implications of the findings are discussed at the conclusion of
the presentation.
1
1. THE CURRENT RESERACH
1.1 PURPOSE OF THE STUDY
The purpose of this study is to examine the impact of organisational characteristics on the
relationship between servant leadership and job satisfaction. Specifically this study will explore the
framework of servant leadership and the effects of the decision making process and organisational
structure on its relationship with job satisfaction. The proposition of this research is that the
relationship between servant leadership and job satisfaction is moderated by both the decision
making process and organisational structure.
Previous research on leadership and job satisfaction has been numerous and far-reaching (Barbuto Jr
& Wheeler, 2006; Castaneda & Nahavandi, 1991; Cerit, 2009; Fernandez, 2008; Griffith, 2004; Hu,
Yang & Islam, 2010; Laub, 1999; Madlock, 2008; Miears, 2004; West, Bocarnea & Maranon, 2009),
with researchers often grouping leadership as an antecedent of job satisfaction. Apart from
leadership, other variables such as the decision making process and organisational structure have
been shown to have an effect on job satisfaction but have only been measured as standalone
organisational constructs, not as moderating factors to leadership (Cheng, Lai & Wu, 2010; Katsikea,
Theodosiou, Perdikis & Kehagias, 2011; Kim & Jogaratnam, 2010; Madlock, 2008; Williams, 1998).
Furthermore, both the decision making process and organisational structure have been researched
in relation to leadership and the impact that a particular leadership style has on these dimensions
(Chaganti & Sambharya, 1987; Kim & Jogaratnam, 2010; Lindgreen, Palmer, Wetzels & Antioco,
2009; Thomas & Ramaswamy, 1994). Each of these three dimensions (leadership, decision making
process and organisational structure) are individually important to the success of the organisation,
however they have not been mutually researched to understand their impact and interaction effects
on employee job satisfaction.
2
These research gaps will be addressed within this thesis by looking at three overarching research
questions. First, Research Question One will pertain to how the decision making process affects the
relationship between servant leadership and job satisfaction. Second, Research Questions Two will
address how organisational structure affects the relationship between servant leadership and job
satisfaction. Finally, Research Question Three will analyse the how the decision making process and
organisational structure interact to affect the relationship between servant leadership and job
satisfaction. Each of these relationships will be tested using moderating hypotheses via two distinct
quantitative methods.
With this research gaps in mind, this research will have two key contributions. First, it will be the first
study to examine the process by which servant leadership, an emerging leadership construct,
predicts job satisfaction in the corporate context by integrating the decision making process,
organizational structure, leadership, and job satisfaction literature. Second, the study will contribute
to the leadership field in general and servant leadership in particular. Specifically, the study will help
build the predictive validity of servant leadership as predictor of a key performance measure (i.e.,
job satisfaction) in an Australian setting. Since most servant leadership studies to date have been
conducted in the US (Han, Kakabadse & Kakabadse, 2010; Winston & Ryan, 2007), this study will test
the extent to which servant leadership can be applied in different cultural settings.
1.2 JUSTIFICATION FOR THE RESEARCH
Research into organisational characteristics using servant leadership theory is limited, so are
empirical studies on job satisfaction and servant leadership within an Australian business setting. In
this light, the current study has the following significance:
1. It creates context for the servant leadership job satisfaction relationship, looking at it with
multiple moderating factors;
3
2. It further validates the importance of empowerment theory in predicting and enhancing job
satisfaction (Jiang, Li-Yun & Law, 2011);
3. It creates a clear link between employee driven leadership theories (servant leadership) and
organisational structure;
4. It expands the validity of how servant leaders make their decisions and the means in which
they go about it;
5. It is the first study to integrates the decision making process literature with the
organisational structure literature, demonstrating the influence organisational structure has
over the decision making process;
6. This study validates a shorter, 18-item servant leadership behavioural scale based on the
Sendjaya, Sarros and Santora (2008) framework. The shortened scale still maintains its focus
on morality and spirituality and its use of multiple dimensions; and
7. It has extending the cultural applicability of the servant leadership framework, testing it in
an Australian setting.
1.3 HYPOTHESES
Research Question One: How does the decision making process affect the relationship between
servant leadership and job satisfaction?
Hypothesis 1: The level of leader involvement in the decision making process positively
moderates the relationship between servant leadership and job satisfaction whereby the
more a servant leader is involved in the decision making process, the higher levels of
elicited employee job satisfaction.
Hypothesis 2: The level of leader dominance in the decision making process negatively
moderates the relationship between servant leadership and job satisfaction whereby the
4
more a servant leader is dominant in the decision making process, the lower levels of
elicited employee job satisfaction.
Hypothesis 3: The positive relationship between servant leadership and job satisfaction will
be moderated by both involvement and dominance such that the positive relationship
between servant leadership and job satisfaction will be stronger when involvement is high
and dominance is low.
Research Question Two: How does organisational structure affect the relationship between servant
leadership and job satisfaction?
Hypothesis 4: The level of organisation formalisation negatively moderates the relationship
between servant leadership and job satisfaction whereby the more formalised the
organisation the lower levels of elicited employee job satisfaction.
Hypothesis 5: The level of organisation centralisation negatively moderates the relationship
between servant leadership and job satisfaction whereby the more centralisation the
organisation the lower levels of elicited employee job satisfaction.
Hypothesis 6: The positive relationship between servant leadership and job satisfaction will
be moderated by both formalisation and centralisation such that the positive relationship
between servant leadership and job satisfaction will be stronger when formalisation and
centralisation are low.
Research Question Thee: How does the decision making process and organisational structure
interact to affect the relationship between servant leadership and job satisfaction?
Hypothesis 7: The positive relationship between servant leadership and job satisfaction will
be moderated by both involvement and formalisation such that the relationship between
5
servant leadership and job satisfaction will be strongest when involvement is high and
formalisation is low.
Hypothesis 8: The positive relationship between servant leadership and job satisfaction will
be negatively moderated by both dominance and centralisation such that the relationship
between servant leadership and job satisfaction will be weakest when dominance and
centralisation are is high.
Figure 1.1 Conceptual Framework
1.4 METHODOLOGY
There have been reservations in behavioural science research, such as leadership, regarding the
suitability of use of only a single method, therefore experiments and surveys were included within
this study (Dial, 2006; Yukl, 1989). Furthermore, there have been increased calls for experimental
designs within leadership research due to the growing concern of self-report limitations (Brutus &
Duniewicz, 2012).
Servant Leadership
Job Satisfaction
Organisational Structure
Decision Making Process
6
The experiments set out to draw causal conclusions of the hypotheses before the organisational
survey was undertaken. Therefore the hypotheses were first tested in a laboratory experiment
which was high in internal validity (Mook, 1983). This method has previously been employed in
leadership research by Van Knippenberg and associates (Rus, Van Knippenberg & Wisse, 2010, 2012;
Van Ginkel & Van Knippenberg, 2012; Van Knippenberg & Van Knippenberg, 2005; Van Quaquebeke,
Van Knippenberg & Eckloff, 2011).
In the survey, the leader’s level of servant leadership behaviours, decision making process and
employees’ job satisfaction was measured in an organisational context. Following the method
established by Rus et al. (2012, pp. 18-19), the survey was undertaken “to further bolster the
confidence in our conclusions by a replication via a different method, the use of a different research
population” as well as a broader conceptualisation of the decision making process and
organisational structure differing levels of servant leadership behaviours than was able to be
achieved with the laboratory experiments. Although the experimental study will yield consistent
casual evidence it does not offer support for the theoretical framework in an organisational setting.
Therefore, there is great value in testing the generalizability of the experimental findings of servant
leadership in the field. Further, it increases confidence in the findings by establishing that they are
not limited to a specific methodological design (Denzin, 1970).
1.4.1 DATA COLLECTION
1.4.1.1 EXPERIMENT
975 Australian business and economics students (391 male, 508 female, 76 undisclosed) with a
mean age of 19.50 years (SD = 1.50) voluntarily participated in the study. Participants were randomly
assigned to one of the 2 (high or low leader involvement in the decision making process) x 2 (high or
low leader dominance in the decision making process) x 2 (high or low centralised organisational
environment) x 2 (high or low formalised organisational environment) conditions.
7
Participants were given instructions on how to complete the case study and were informed that they
were participating in a study from a leading consultancy firm, assisting them in improving their
graduate program. Participants were asked to put themselves in the scenario that they had just
completed a three year graduate program for a leading Australian consultancy firm working with the
same supervisor (leader) for their entire tenure. In each of the scenarios the supervisors were
described as portraying servant leader behaviours based upon the Sendjaya et al. (2008) servant
leadership framework.
1.4.1.2 SURVEY
The participants are direct reports of their respective companies’ CEO/GM/MD and were recruited
from a mailing database of enterprises within Australia. The questionnaire was sent via postal mail
to 1,500 randomly selected companies from the database.
Of the 1,500 participants that were contacted, 336 questionnaires were returned yielding a response
rate of 22.4%. 336 responses was well above the recommended sample size of 200-250 for a survey
design (Hair, Black, Babin & Anderson, 2010; Maxwell, 2000). 68% of the respondents were male and
60% were aged below 50. They had worked for their respective leader for an average of 7.5 years.
1.4.2 DATA ANALYSIS
1.4.2.1 EXPERIMENT
Analysis of Variance (ANOVA) and t-tests were used to test the hypotheses via the SPSS software. As
recommended by Tharenou, Donohue and Cooper (2007), planned comparison analysis was used
determine if particular manipulations resulted in differing levels of job satisfaction. The analysis
revealed that all eight hypotheses were supported by the experiments.
8
1.4.2.2 SURVEY
In order to test the hypotheses with the organisational survey data, a hierarchical regression analysis
was performed by entering the control variables, servant leadership and the study variables into
different steps of the equation (variables were z-standardised prior to analyses). Simple slopes
analysis and post-hoc tests for slope differences were used for both the two-way and three-way
significant moderations (Dawson & Richter, 2006). The analysis revealed that Hypotheses 1, 6, 7 and
8 were supported by the organisational survey data.
An example of both the experiment and the survey analysis is presented in piece of work submitted
entitled Research Question Two.
1.5 DISCUSSION
This research creates context for the servant leadership job satisfaction relationship. In previous
research the relationship between servant leadership and job satisfaction has only been looked at
without any moderating factors (Cerit, 2009; Jaramillo, Grisaffe, Chonko & Roberts, 2009; Mehta &
Pillay, 2011). This research has revealed that differing levels of the decision making process and
organisational structure affects the impact servant leadership has on employee’ job satisfaction. The
research extends the foundations for the creation of a full model of servant leadership situation
applicability.
9
2. PROGRESS
This section outline the progress made since confirmation in May, 2011. Since then major progress
has been made on the thesis and the maturation of the research itself. In particular, the
methodological approach has changed in reaction to advancements in leadership research
(Schneider & George, 2011; Van Ginkel & Van Knippenberg, 2012; Van Quaquebeke et al., 2011) and
the data analysis has changed to suit advancements in methodological analyses. Although
adaptation has been made to the study, it has not hindered my original progress towards
completion.
The progress chapter will be split into four sections:
1. The progress to date on each of the chapters of the thesis;
2. The timetable for completion will be reassessed;
3. Deviations from the confirmation timetable and research design will be justified; and
4. How the oral reflects the work presented in the progress report.
2.1 THESIS PROGRESSION
Due to the subject nature of the study, namely servant leadership, this thesis will be examined by
American reviewers. Therefore, the thesis will take on an amalgamation of the traditional thesis
structure and thesis by publication. The thesis contains nine chapters, three of which (Chapters Five
through Seven) will be written in publication style. The methodology, literature review and
descriptive data analysis will still follow a traditional style. The progress of each of the chapters is
outlined below.
Chapter One: Introduction
10
As the introduction reflects the entire thesis, this will continue to be under review as the discussion
chapter develops. The chapter discusses the purpose of the study, the statement of the problem, the
contribution it makes to theory and practice, definition of key terms and an overview of the thesis.
The draft of this chapter is currently under review by my supervisors.
Chapter Two: Literature Review
This chapter is in the final stages of current completion, reviewing the servant leadership research
from 2012. This chapter discusses an overview of leadership as a concept before focusing on servant
leadership in terms of its origins, development, characteristics and measures. The decision making
process is then reviewed, looking at the variables of involvement and dominance. Organisational
structure will be assessed in terms of formalisation and centralisation and job satisfaction will be
analysed as the dependant variable. The literature review will still continue to develop and the latest
draft is yet to be assessed by my supervisors. This chapter is the next to be reviewed by my
supervisors and will be submitted for review on the 4th of June, 2012.
Chapter Three: Methodology
The research achieves triangulation by using two distinct forms of quantitative data, namely vignette
experiments and organisational surveys. The methodology discusses the rationale for both data
collection methods, the instrumentation, sample, data collection and analysis. This chapter is
completed and currently under review by my supervisors awaiting feedback.
Chapter Four: Descriptive Data Analysis
The quantitative data obtained from the experiment and the organisational survey was analysed
using methods outlined by Hair et al. (2010), among others. The demographics of the data, data
preparation, construct validity and reliability and the validation of the composite scores was
discussed in this chapter. This chapter is completed and currently under review by my supervisors.
11
Chapter Five: Research Question One
This chapter addresses how the decision making process interacts with the servant leadership job
satisfaction relationship. In so it addresses the first three hypotheses looking at involvement and
dominance as moderators in this relationship. The surrounding literature, procedure, results and
discussion are presented in this chapter. Study 1 provided support for the hypotheses where Study 2
only provided support for Hypothesis 1. This chapter is completed and currently under review by my
supervisors.
Chapter Six: Research Question Two
This chapter addresses how organisational structure interacts with the servant leadership job
satisfaction relationship. In so it addresses hypotheses four through six looking at formalisation and
centralisation as moderators in this relationship. The surrounding literature, procedure, results and
discussion are presented in this chapter. Study 1 provided support for the hypotheses where Study 2
only provided support for Hypothesis 6. This chapter is completed and currently under review by my
supervisors.
Chapter Seven: Research Question Three
This chapter addresses how the decision-making process and organisational structure interact with
the servant leadership job satisfaction relationship. In so it addresses hypotheses seven and eight
looking at involvement and formalisation and dominance and centralisation as moderators in this
relationship. The surrounding literature, procedure, results and discussion are presented in this
chapter. Study 1 and Study 2 provided support for both the hypotheses. This chapter is completed
and currently under review by my supervisors.
Chapter Eight: General Discussion
12
The general discussion will tie the three research questions together, discussing the extension of
both theory and practice through this study. In particular it will focus on furthering empowerment
theory based upon the aforementioned variables. The chapter will go on to suggest further research
and models in this area. This chapter is at its infancy stages with work to be completed on it in the
coming months. It is envisaged that the draft will be sent to the supervisors by August 2012.
Chapter Nine: Conclusion
This chapter will summarises the finding, speak on the limitations of the study and reiterate the
implications and importance of the study. This chapter will be addressed once the general discussion
and the literature review have been submitted for review.
2.2 TIMETABLE FOR COMPLETION
Currently, seven of the nine chapters of the thesis are under review by my supervisors. The feedback
on these chapters will be addressed in the coming months. It is envisaged that the final draft of the
literature review will be completed by June and the general discussion by September. The conclusion
then will be addressed after feedback on the general discussion.
Currently, Research Question Two has been accepted as a conference paper in the 2nd Global Servant
Leadership Research Roundtable in June this year. After the mid-candidature review submission will
be made to the European Academy of Management Doctorial Colloquium and the British Academy
of Management Doctorial Colloquium. Application will also be made for the Academy of
Management Conference in 2013 based on Research Question Three.
No journal articles have been submitted from the research as yet. However, after the Servant
Leadership Roundtable, Research Question Two will be submitted, as well as Research Question
Three after the Academy of Management submission.
The reviewed timetable for the thesis is illustrated below.
13
Figure 2.1 Confirmation Timetable
Activity Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec 2010 Literature Review
2011 Literature Review
Methodology Ethics Approval Data Collection (Survey)
Results Data Collection (Interviews)
2012 Data Collection (Interviews)
Results Discussion Conclusion Introduction Revisions 2013 Revisions Submission Writing of Journal Articles
Figure 2.2 Mid-Candidature Review Timetable
Activity Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec 2012 Literature Review
General Discussion
Conclusion Revisions 2013 Revisions Submission Writing of Journal Articles
14
2.3 DEVIATIONS FROM CONFIRMATION
The current state of the thesis is currently where the timetable in the confirmation stated. The
timetable requires the months of May, June and July to be spent on the discussion, which is the
current state of progress. There are no major deviations from the timetable laid out in the
confirmation from this current point in time. However, there have been methodological deviations
from the confirmation report.
First, the study employed the use of experiments to test the hypotheses before they were tested in
an organisational setting. As the decision making process and organisational structure had very
rarely been used in association with leadership studies, let alone together, the experiments sought
to test if the theoretical arguments held true in practice. Therefore a simulated organisational
environment was created which allowed different levels of the decision making process and
organisational structure to be manipulated. Using the experiments alongside the organisational
survey bolstered the confidence in the findings as the conclusions were replicated using a different
method and a different research population, thus increasing the generalizability of the findings (Rus
et al., 2012). Further, it increases confidence in the findings by establishing that they are not limited
to a specific methodological design (Denzin, 1989). This method has previously been employed in
leadership research by Van Knippenberg and associates (Rus et al., 2010, 2012; Van Ginkel & Van
Knippenberg, 2012; Van Knippenberg & Van Knippenberg, 2005; Van Quaquebeke et al., 2011).
Second, the qualitative part of the thesis no longer will be addressed. The results gained from the
experiments, surveys and the surrounding literature allow the researcher insight into the
phenomena without needing to take a qualitative approach. Further using experiments and the
survey achieve triangulation, addressing issues concerning validity and reliability (Denzin, 1989).
Thirdly, with the advancement in simple slopes analysis, three-way moderation effects will now be
addressed in the thesis (Zhang & Peterson, 2011). The three-way interaction between servant
15
leadership, the decision making process and organisational structure had been discussed during the
first year of candidature but was not brought to confirmation due to the technicality of the
procedures. With the advancement of plotting programs and a growing proliferation of three-way
moderations in the leadership field, the three-way moderations were analysed for the thesis.
2.4 ORAL PRESENTATION COMPONENT
The oral presentation component of the mid-candidature review will take place on the 11th of May.
The 20 minute presentation will briefly cover the progression made across the thesis by presenting
the findings and preliminary discussion of the research. Although unable to cover the full extent of
the research, the presentation will give an insight to the current state of the research for feedback
and comment.
16
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