Literature Review On Leadership Styles On Stress Outcomes Management Essay

The leader’s leadership styles play a very important role in achieving goals of the organization. The leader’s ability to adapt to internal and external environment changes and working with followers together is the key to success. Moreover, I should mention that many causal modeling revealed that leadership style has a direct, rather than indirect, effect on task performance.

Highly complex and stress-laden workplaces present challenges to organizational leaders as they are faced with the task of managing the workforce while concurrently maintaining commitment and morale. Leaders can often be in the middle source of stress among employees in the workplace (Basch & Fisher, 2000; Sosik & Godshalk, 2000).

As the distinctiveness of work changes, so must change the roles and tactics of all leaders. The Leader promote supportive relationships, elicit motivation along with assistants/followers, make possible more positive and less negative emotions along with assistants, and stimulate more kind evaluations of stressful tasks among assistants may be more effective than the more conventional leaders who usually tend toward task-directive methods.

These leadership elements based on relation, motivation, and emotion are customary with transformational leadership styles (Bass, 1998; Yukl, 1998). Despite a considerable body of literature suggests that leaders based on transformational are effective, there is a small number of experimental research that has discovered how transformational leaders may impact subordinates/followers during stressful business deals.

Taking into above mentioned I am to deal with transformational and transactional leadership styles their influence on different subordinate including emotional and motivational experiences. The effects of leadership style based on stressful task performance were examined (by Joseph B.Lyons, Tamara R.Schneider 2009) as potential mediators, further.

The Nature of Leadership and Job Stress

2.1 Leadership Style

In the field of organizational behavior the leadership is really an important subject. Leadership is one with the most dynamic effects during individual and organizational interaction. In other words, whether a management is able to execute “collaborated effort” depends on leadership capability. The excellent leader is not only inspires follower’s potential to improve efficiency and also meet their requirements in the process of achieving organizational goals.

According to Stogdill (1957) leadership as the individual behavior to guide a group to achieve the common target. In latter days, Richards & Engle (1986) defined leadership as about establishment of vision, value and creation of environment so that the objective can be accomplished. Definitions on leadership defined by selected authors were summarized into table 1.



Definition of Leadership


Hemphill &Coons

Leadership is the individual behavior to guide a group to achieve the common target.



Leadership is an influential activity to others or organization to achieve the target set by the leader.



Leadership is an activity process of interpersonal relationship; other’s behavior is influenced through this process to achieve the set target.



Leadership means persuasion on others to enthusiastically chase for certain target.


Morphet, Johns &Reller

Leadership means, in the social system, the individual action, behavior, faith and target are influenced by the others under volunteer cooperation.


Richards &Engle

Leadership is about establishment of vision, value and creation of environment so that the objective can be accomplished.



Leadership means the leader satisfies the staff’s demand by use of consultation, negotiation and compromise so that the staff trades his work for rewards.


Jacobs &Jaques

Leadership helps others to strive and to enhance aspiration to achieve the target.



Leadership is the ability to influence the group to achieve the target.



Leadership is the process of influence on the subordinate, in which the subordinate is inspired to achieve the target, the group is maintained in cooperation, and the established mission is accomplished, and the support from external group is obtained.



Leadership is exchanged relationship between leader and subordinate.



Leadership means use of leading strategy to offer inspiring motive and to enhance the staff’s potential for growth and development.

Table 1: Definition of Leadership

After reviewing studies on leadership theory conducted in the past, it is generally divided into four periods:

Traits theory in 1930s— It focuses on the innate leadership qualities and competence. These innate qualities are not found in others. The so-called quality can be divided into physiological and mental aspects. The physiological aspect includes: height, weight, looks, and vigor while the mental aspect includes intelligence, confidence, and aggressiveness etc. Stogdill (1948) proposed twelve leadership related studies and was considered as representative of this period.

Behavioral theory from late 1940s to late 1960s— It believes that a leader will be able to achieve ideal organizational efficiency if he demonstrates effective leadership behaviors. These leadership behaviors may be trained or learned through experience. Actual behavior or leadership styles are emphasized. Representative research is conducted in Ohio State University. Ohio State University proposed “consideration”and “initiating structure” of leadership behaviors. Consideration is a behavior that focuses on strengthening relationship with subordinates based on their needs and perceptions, while “initiating structure” is a behavior that focuses on subordinate performance in goal accomplishment.

Contingency theory in late 1960s: This theory states that there is no set of optimum leadership model in this world and that it depends on the situation encountered. Situational leadership theory began its development subsequently. It states that leaders need to adopt the most optimum leadership style based on different organizational situations. Among which, Fiedler’s contingency theory (1967) is most well-known.

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Contemporary leadership theory since 1970s: The viewpoint of contemporary leadership theory states that leadership is a type of interactive process with the environment. Bass & Avolio (1990) proposed transactional leadership and transformation leadership :

Transactional leadership: Encouraging subordinates through incentive establishment. In other words, incentive elicits work performance. Transactional leadership is the basis for most leadership theories. It focuses on the exchange relationship between the leader and the subordinate (Fry, 2003¼›Northouse, 2001);

transformation leadership—to enhance staff’s trust and respect for leader by altering intrinsic work value and faith of staff at the same time in order to elicit work capabilities. Because “charisma” is viewed as an essential element, transformation leader provides incentives for subordinates, enhance subordinate potential and development. (Fry, 2003); and

Charismatic leadership theory refers to the follower’s perception toward certain behaviors of the leader as being heroic or extraordinary.

2.2. Personality Charateristics

Personality characteristic means one’s psychological and physical phenomenon. At different time and condition, it adapts to different environment by unique behavioral mode and thinking method. Friedman & Rosenman (1959) categorize personality characteristics into type A and B. Type A shows exuberant ambition and aggression. Type B has more patience and pays less attention to competition and sense of achievement. Definitions of personality characteristic were summarized as shown into table 2.



Definition of Personality Characteristic



Personality characteristic is a combination of individual trait and property, which generates a lasting and special characteristic different from the others.



Personality means dynamic behavior from psychological and physical aspect to adapt to the environment.



Personality represents structure and dynamics from reaction to the environment.


Scott &Mitchell

Personality is formed from accumulation of psychological growth and development.



Personality is one’s reaction to the others and consequence of interaction with others.



Personality characteristic means psychological attributes of affection and thought among people; it’s also a specific and lasting behavioral pattern.



The formation of personality is affected by gene, culture, environment, and social factor.

Table 2 Definitions of Personality Characteristic

2.3. Empirical Studies

The verification researches made by the domestic and foreign scholars on leadership, job stress, personality characteristic and turnover intention are described as follows:

In research of leader behavior and job stress, Fleishman (1964) found that consideration in the leader behavior has negative connection with the job stress, while the initiating structure is positively connected with job stress;

In research of leader behavior and turnover intention, Fleishman & Harris (1962) in the study of the influence of various leadership types on turnover rate and complaint rate found that consideration for the subordinates is negatively connected with the turnover, while the initiating structure is positively connected with turnover;

In research of job stress and turnover intention, Parasuraman & Alutto (1984) in the research on 217 employees at the food manufacturing company indicated that job stress had positive connection with turnover intention;

In research of personality characteristics and job stress, Chang (1998) chose employees of Taiwan Sugar Company as research subject and indicated that those with type A personality characteristic had higher perception of job stress and shew more physical and psychological discomfort reactions;

In research of personality characteristics and turnover intention, Chang (2003) released 260 questionnaires to 11 schools and revealed that personality characteristics had no significant impact on turnover intention. The relevant empirical researches were listed in table 3.




Empirical Result



222 operators of China Steel Company.

In leadership method, consideration has significantly negative connection with job stress, but the initiating structure has apparently positive connection with job stress. For overall , leadership is negatively connected with job stress.



207 engineers of a R&D institute

Consideration leadership has negative connection with turnover.



217 employees of 105 companies

In leader behavior, consideration has negative connection with turnover intention and the initiating structure is negatively connected with turnover intention.

Parasuraman &Alutto


217 employees of food manufacturing company

Job stress has significantly positive connection with turnover intention.



Employees of 12 five-star hotels in Taipei

Job stress is positively connected with turnover intention.



180 high-tech industry and 255 traditional industry

People with A-type personality characteristics perceive job stress more serious while, those who with B-type perceive the least.



All inland employees of Taiwan Sugar Company

People with more A-type personality characteristics perceive higher extent of job stress and also higher improper reaction physically and psychologically.



Employees from 95 gas stations at 23 cities

People with A-type personality characteristics have significantly higher job stress than those of people with B-type.



2,400 employees of Taiwan Semiconductor Manufacturing Co.

People with A-type personality characteristics perceive more anxiety, disconsolation, low self-respect than those people with B-type, yet the overall job stress does not reach significant level.



260 contractual personnel at 11 schools

The research result finds that personality characteristics has no evident influence on turnover intention.



194 staffs of Tainan Revenue Service Office

The research result indicates no significant variance between male and female on job stress.



194 staffs of Tainan Revenue Service Office

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Age is positively connected with job stress.



200 female operators of wafer manufacturer in Hsinchu Industrial Zone

Age has significantly positive connection with turnover intention.



333 bus drivers in Taipei

Single people feel higher job stress than the married ones.



Employees of enterprises in mid of Taiwan

Married people perceive more disconsolate job stress than single ones.



200 female operators of wafer manufacturer in Hsinchu Industrial Zone

Turnover intention of single people is higher than that of married ones.



194 staffs of Tainan Revenue Service Office

The research found turnover intention difference between female and male is not evident.



Research of job stress and job satisfaction on 174 high-tech employees

Worker’s seniority has positive connection with job stress.



333 bus drivers in Taipei

Worker’s seniority has negative connection with job stress.

Table 3 Empirical Research

2.4. Job Stress

Job stress means improper occupational stress or burden that badly affects the psychological and physical condition of the worker himself (Kroes, 1974). Peng (1998) states that psychological stress is neither stimulus nor reaction but a handling method or relationship; it is the interaction between the individual and the environment, which gains or consumes resources of human behavior and endangers the individual health. When the individual feels job stress, it usually comes along with following symptoms:

Psychological aspect— passive, disconsolate, anxious and anger;

physical aspect— imbalance incretion, headache, sleepless and disturbed;

Behavioral aspect— change of living behavior, decrease of job involvement, absence from work, and turnover. The definitions of various authors were summarized in table 4.



Definition of Job Stress



Stress means uncertain reaction of the body to demand, and also basic demand from internal or external environment, or reaction result against threat of balance condition.



Stress is the consequence that an individual’s ability or skills fail to coordinate with the job or the job environment cannot satisfy the individual demand.



Stress is improper occupational pressure or burden which badly affects the psychological and physical condition of the worker himself.


Beehr &Newman

Stress is the change that drives the worker from normal psychological and physical condition.


Ivancevich &Matteson

Stress is some adaptive reaction, a consequence of special psychological or physical demand from the event, and such reaction takes personal character as intermediary.


Fleming et al.

Stress is a conceptualized process and contains one’s recognition and reaction to danger or threat.



Stress is one’s reaction against threat in the working environment.



The psychology claims that job stress is neither stimulus nor reaction but some handling method or relationship.

Table 4 Definition of Job Stress

3.0. The effects of leadership style on stress outcomes. Transactional versus Transformational Leadership.

3.1. Transactional Leadership

Bass’s (1998) Very many Leadership Model discusses 3 leadership styles:1: transactional, 2:laissez-faire, and 3:transformational. A fundamental feature of transactional leadership is the social exchange procedure.

There are 3 appearances of transactional leadership: contingent reward, management by exception-active, and management by exception-passive. Contingent reward leadership engrosses establishing worker expectancies of rewards (e.g., financial compensation or public praise) for good acting. Management by exception-active leadership is distinguished by actively watching subordinate departures from performance standards.

These leaders inspire subordinates by encouraging them to preserve established performance standards and avoid making errors. I case performance differences are detected, the leader will get involved and make the compulsory corrections. Vice versa to the active form, passive management by exception leaders do not actively monitor performance deviations but rather wait to be notified of performance deviations. After that upon recognition of a performance departure, the leader will intervene.

My literature review focuses only on the active form of management by exception, and all future suggestions to management by exception leadership are in orientation to the active structure of management by exception.

Ghee Soon Lim, (2004) transactional leaders focus on the present and do well at keeping the organization running smoothly and efficiently. They are good at traditional management functions such as planning and budgeting and generally focus on the impersonal aspects of job performance. Transactional leaders can be quite effective.

By clarifying expectations, leaders help build followers’ confidence. In addition, satisfying the needs of subordinates may improve productivity and morale. Transactional leaders maintain stability within the organization rather than promote change. Transactional skills are important for all leaders. In today’s world, where organizational success often depends on continuous change, effective leaders also use a different approach.

3.2. Transformational Leadership

Comparing with transactional leaders, transformational leaders request to the motivational, emotional, and developmental needs of their followers (Bass, 1998).

Transformational leadership is distinguished by four elements: inspirational motivation (the ability to naturally easily motivate and request to someone’s emotions), idealized influence (the ability to obtain respect from others), individualized support (the ability to support followers’ sole developmental needs), and intellectual stimulation (the ability to stimulate followers’ desire to learn and develop) (Bass, 1998).

Transformational leaders give power to employees through emotional requests (Yukl, 1998) and may alter the frame stressful situations as chances for growth at the same time as providing the necessary maintain throughout the performance procedure (Bass, 1998; Sosik & Godshalk, 2000). Research has displayed that transformational leaders are successful leaders (Lowe, Kroeck, & Sivasubramaniam, 1996; Podsakoff, Mackenzie & Bommer, 1996; Yammarino, Spangler & Bass, 1993).

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On the other hand, most leadership study has used correlation data to scan how certain leadership styles relate to act and other minor variables, as a result numerous researchers called for increased use of testing in leadership research (Brown & Lord, 1999; Kirkpatrick & Locke, 1996).

There are some empirical study where leadership styles (notably charismatic styles) have been operated (Cherulnik, Donley, 2001; Bono & Ilies, 2006), so far few studies have tested whether those manipulations effect in changes in objective task performance. Because of their higher visioning, support, and potential for alter the framing of stressful situations as chances, it is expected that transformational leaders will improve follower’s task performance throughout stressful tasks.

3.3. Evaluation transformational and transactional leadership styles and their influence on individuals’ performance on a stressful task.

In my literature review I tried to evaluate whether transformational or transactional leadership style impacts more positively individuals’ performance on a stressful tasks and overall followers’ performance. First of all analyzing transformational and transactional leadership styles, basically Leadership style may determine the effectiveness of customer service training and deployment.

Tichy and Devanna (1986) suggest that both transformational and transactional leadership are both effective leadership styles. Tosi (1982) also agrees. Transactional leaders lead to low follower satisfaction, while encouraging maintenance of the status quo (Bass et al., 1987).

Likewise, transactional leaders find success by focusing on task-oriented exchange relationships to achieve success in attaining goals. Transformational leaders lead change-usually on greater levels of the organization and follower of transformational leaders are generally more committed and dedicated to the leader and goals of the organization. (Bass, 1985; Tichy & Devanna, 1986).

Transformational leaders articulate a vision for a future of their organization, while at the same time intellectually stimulate subordinates and focus on differences among people (Yammarino & Bass, 1990).

Furthermore, transformational leadership is based on the personal values, beliefs, and qualities of the leader rather than on an exchange process between leaders and followers. In addition transformational leadership differs from transactional leadership in some areas.

Firstly, Transformational leadership develops followers into leaders, means followers are given greater freedom to control their own behavior. Transformational leadership rallies people around a mission and defines the boundaries within which followers can operate in relative freedom to accomplish organizational goals.

Secondly, transformational leader pays attention to each individuals’ need for growth and development. Therefore, the leader sets examples and assigns tasks not only to meet immediate needs but also to elevate followers’ needs and abilities to higher level and link them to the organization’s mission. Transformational leaders change followers so that they are empowered to change the organization.

Thirdly, transformational leaders motivate people to do more than originally expected. Followers admire these leaders, want to identify with them, and have a high degree of trust in them. Transformational leaders motivates people not just to follow the leader personally but also to believe in the need for change and be willing to make personal sacrifices for the greater purpose.

Fourthly, the most significant role of the transformational leader may be to find a vision for the organization that is significantly better than the old one and to enlist others in sharing the dream. Change can occur only when people have a sense of purpose as well as a desirable picture of where the organization is going. Without vision, there can be no transformation.

Whereas transactional leaders promote stability, transformational leaders create significant change in followers as well as in organizations. Leaders can learn to be transformational as well as transactional. Effective leaders exhibit both transactional and transformational leadership patterns. They accentuate not only their abilities to build a vision and empower and energize others, but also the transactional skills of designing structures, control systems, and reward systems that can help people achieve the vision.(Marfred F.R. Kets De Vries, 1998)

4.0. Conclusion

We live in an period of time where leadership symbolizes a emotional, developmental, and motivational part of organizational achievement; that’s why a range of subordinate results/outcomes are important things to consider when we evaluate leadership successfulness.

Having looked thoroughly through all the studies examined to evaluate whether transformational or transactional leadership styles impacts positively on individuals’ performances on a stressful task, and also when taking into account social support, efficiency beliefs, negative emotions. For example, One of this kind of experimental examine was held and that experiment took part 240 (two hindered forty) participants, they are watched video instructions for a stressful task.

The experimental study provided evidence that transformational leadership is advantageous not only for performance, but also when considering effectiveness beliefs, social support, stress assessments, and negative emotions. Leaders of the future are encountered/faced with heavy challenges. Leaders must be clever at influencing followers’ motivational, emotional, and developmental needs in the stressful circumstance of present work.

This kind of changes in the focus of modern leadership successfulness requires that leadership explorers go after suit and need consider a wider range of unpredictable outcomes in leadership research. In addition I would like also add that Transformational leaders, with their excellent arsenal of inspirational motivation, Individualized support, idealized influence and intellectual stimulation have to meet these challenges of in our day and those of the upcoming future.

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