Impact of Servant Leadership on Employee Performance, with Mediating Effect of Trust and Moderating Effect of Culture: Evidence from the Banking Sector of Pakistan
DOI:
https://doi.org/10.51153/mf.v17i2.542Keywords:
Servant Leadership, Trust, Employee Performance, Senior Management, Banking, Training, private banks in PakistanAbstract
Servant leadership is a developing leadership model in the global corporate world, especially in emerging markets such as Pakistan. It is important since servant leadership emphasizes follower-centric, altruist ethical and spiritual values. This study examines the relationship between servant leadership and employee performance with the mediating effect of trust and the moderating role of power distance. The sample size was 415, which we selected from the employees of the leading banks in Pakistan. The study adopted the scales and measures from the past studies. We used SPSS version 23 for statistical analysis, which included reliability and validity analysis and multiple regression. The analysis also includes mediated regression and moderation on SPSS. The study found that servant leadership and trust significantly affect job performance. At the same time, we found that power distance moderates servant leadership and trust. Organizations’ growth and sustainability depend on employees’ motivation and performance in this competitive world. Further, we found that trust mediates servant leadership and employee performance. Leaders in the organization develop a culture that encourages employees to give feedback and suggestions. Such an environment enhances employees’ trust and motivation, resulting in increased organizational performance.References
Atkinson, S. & Butcher, D. (2003). Trust in managerial relationships. Journal of Managerial Psychology. 18, 282-304.
Barbuto, J.E., & Wheeler, D.W. (2006). Scale Development and Construct Clarification of Servant Leadership. Group & Organization Management, 31(3), 300-326
Blau, P. (1964). Exchange and Power in Social Life. New York: John Wiley & Sons.
Braun, C. (1997). Organizational infidelity: How trust violation affects employee-employer relationships. The Academy of Management Executives. 11(4), 94-105
Brower, H.H., Schoorman, D.F. & Tan, H.H. (2000). A model of relational leadership: the integration of trust and leader-member exchange. Leadership Quarterly, 11(2), 227-50
Cherry, B. W. (2000). The antecedents of trust in a manager, the subordinate tells the story of time. Dissertation Abstract International, UMI No. 3069348.
Del, A. R. M., & Akbarpour, M. (2011). The Relationship between Servant Leadership of Managers and Employees Trust. Interdisciplinary Journal Of Contemporary Research In Business. 3(6), 525-537.
Dorfman, P.W., and House, R.J. (2004). Cultural Influences on Organizational Leadership. In Culture Leadership and Organizations, 51 – 73
Ebener. R. D., & O’Connell. J.D. (2010). How Might Servant Leadership Work? Nonprofit management & Leadership, 20(3), 315-335
Fukuyama, F. (1995). Trust: The Social Virtues and the Creation of Prosperity. London: Penguin.
Gambetta, D. (1988).Can we trust trust?, in Gambetta, D. (Ed.), Trust: Making and Breaking Cooperative Relations, Basil Blackwell, New York, NY, 213-38.
Graham, J. W. (1991). Servant-leadership in organizations: Inspirational and moral. Leadership Quarterly, 2(2), 105-119.
Greenleaf, R. K. (1970). The servant as leader. Westfield, IN: Greenleaf Center for Servant Leadership
Greenleaf, R. K. (1977). Servant leadership: A journey into the nature of legitimate power and greatness. New York: Paulist Press.
Greenleaf, R. K. (1977). Servant leadership: A journey into the nature of legitimate power and greatness. New York: Paulist Press.
Hock, D. (2000). The art of chaordic leadership. Leader to Leader, 15, 20–26
Hofstede, G. H. (1980).Culture’s Consequences: International Differences in Work-Related Values. Beverly Hills, CA.
House, Robert J. (1971). A Path Goal Theory of Leader Effectiveness. Administrative Science Quarterly.16, 321–339.
House, R.J., Hanges, P.J., Javidan, M., Dorfman, P.W., & Gupta, V. (2004). Culture Leadership and Organizations: The GLOBE Study of 62 Societies, London: Sage
Hunter, J. C. (2004). The world’s most powerful leadership principle: How to become a servant leader. New York: Crown Business.
Jaramillo, F., & Mulki, J.P. (2008). Sales Effort: The Intertwined Roles of the Leader, Customers, and the Salesperson. Journal of Personal Selling & Sales Management, 28(1), 37–51.
Jaramillo. F., Grisaffe.B.D., Chonko. B. L., & Roberts. A. J. (2009). Examining The Impact of Servant Leadership on Salesperson’s Turnover Intention. Journal of Personal Selling & Sales Management, 29(4), 351-365
Jaworski, J. (1997). Destiny and the Leader,’ in Insights on Servant Leadership: Service,
Khilji, S.E. (2001). Human Resource Management in Pakistan. Human Resource Management in Developing Countries. London: Routledge
Khilji, S.E. (2002). Modes of Convergence and Divergence: An Integrative View of Multinational Practices in Pakistan. International Journal of Human Resource Management. 13(2), 232–53
Khilji, S.E. (2003). To Adapt or Not to Adapt: Exploring the Role of National Culture in
HRM – A Study of Pakistan. International Journal of Cross Cultural Management. 3(1), 121–44.
Koopmans, L., Bernaards, C., Hildebrandt, V., van Buuren, S., Van der Beek, A., de Vet, H.C.W. (2013). Development of an individual work performance questionnaire. International Journal of Productivity and Performance Management, 62(1) 6 - 28
Lord, R. G. & Brown, D. J. (2001). Leadership, values, and subordinate self-concepts. Leadership Quarterly, 12(2), 133-152.
Mayer, R., Davis, J. & Schoorman, F. (1995). An integrative model of organizational trust. Academy of Management Review. 20(3), 709-34
McGregor, D. (1966a). Conditions of effective leadership. In W. G. Bennis, E. H. Schein & C. McGregor (Eds.), Leadership and motivation: Essays of Douglas McGregor ( 49-65). Cambridge, MA: M.I.T. Press.
McGregor, D. (1966b). New concepts of management. In W. G. Bennis, E. H. Schein &
C. McGregor (Eds.), Leadership and motivation: Essays of Douglas McGregor (3-20). Cambridge, MA: M.I.T. Press.
Mittal, R., and Dorfman, W. P. (2009). Servant leadership across cultures. Journal of World Business, 47, 555–570
Mittal, R., & Dorfman, W.P. (2012). Servant leadership across cultures. Journal of World Business, 47, 555–570
Parolini, J.L. (2007). Investigating the distinctions between transformational and servant Leadership. Doctoral dissertation thesis, Regent University, Virginia Beach, VA.
Pekerti, A.A., & Sendjaya, S. (2010). Exploring servant leadership across cultures: comparative study in Australia and Indonesia. The International Journal of Human Resource Management, 21(5), 754-780.
Peterson, J. S., Galvin, M. B., & Lange, D. (2012). CEO Servant Leadership: Exploring Executive Characteristics and Firm Performance. Personnel Psychology, 65, 565–596
Podsakoff, P.M., MacKenzie, S.B., Moorman, R.H. and Fetter, R. (1990). Transformational leader behaviors and their effects on followers’ trust in leader, satisfaction, and organizational citizenship behaviors. Leadership Quarterly, 1(2), 107-42.
Qureshi, Z.I. (1995). Management in South Asia. in D.M. Saunders and R.N. Kanungo (eds) New Approaches to Employee Management. Greenwich, CT: JAI Press
Rafferty, A. E., & Griffin, M. A. (2004). Dimensions of Transformational Leadership: Conceptual and Empirical Extensions. Leadership Quarterly, 15, 329–354.
Rousseau, D.M., Sitkin, S.B., Burt, R.S. & Camerer, C. (1998). Not so different after all: across-discipline view of trust. Academy of Management Review, 23(3), 393-404.
Russell, R. F., & Stone, A. G. (2002). A Review of Servant Leadership Attributes: Developing a Practical Model, Leadership & Organization Development Journal, 23 (3), 145–157.
Senjaya. S., & Pekerti. A. (2010). Servant leadership as antecedent of trust in organizations. Leadership & Organization Development Journal, 31(7), 643-663
Schwartz, S. H. (1994). Cultural dimensions of values. In U. Kim,H. C. Triandis, C. Kagitcibasi, S. C. Choi, & G. Yoon (Eds.), Individualism and collectivism: Theoretical and methodological issues. Thousand Oaks, CA: Sage
Spears, L. C. (1994). Servant leadership: Quest for caring leadership. Inner Quest, 2, 1-4.
Spears, L. C., & Lawrence, M. (Eds.). (2004). Practicing servant-leadership: Succeeding through trust, bravery, and forgiveness. San Francisco, CA: Jossey-Bass.
Stone, A.G., Russel, R.F., and Patterson, K. (2004). Transformational versus Servant Leadership:A Difference in Leader Focus. Leadership and Organization Development Journal, 25(4), 349 – 361
Tan, H.H. & Tan, C.S. (2000). Toward the differentiation of trust in supervisor and trust in organization. Genetic, Social, and General Psychology Monographs, 126(2), 241-60
Tariq, A. R., Khan, F., Hassan, K., Ullah, M. K., Nadeem, A., Khanum, M., Hussain, M. (2011). Statistics on scheduled banks in Pakistan, State bank of Pakistan
Valdemar, A.H.Jr. (2008). Employee Satisfaction and Organizational Commitment: A Mixed Methods Investigation of The Effects of ]Servant Leadership. Capella University. UMI No: 3320645.
Van Dierendonck, D. (2010). Servant Leadership: A Review and Synthesis. Journal of Management.
Van Dierendonck, D. (2011). Servant Leadership: A Review and Synthesis. Journal of Management, 37(4), 1228-1261.
Waal, A., & Sivro, M. (2012). The Relation Between Servant Leadership, Organizational Performance, and the High-Performance Organization Framework. Journal of Leadership & Organizational Studies, 19(2) 173 –190
Welch, J. (2001). Jack: Straight from the gut. New York: Warner Books.
Downloads
Published
Issue
Section
License
- Copyright of all the submissions to the Market Forces will remain to the contributors.
- Anyone is allowed to distribute, remix, tweak, and build upon his/her work, even commercially, as long as it is credited/cited to the original contributors of the Market Forces.
