i Leadership style and supervisory behaviour on employee wellbeing and performance at two Retail Banks in South Africa Candy Harris 545 253 A research article submitted to the Faculty of Commerce, Law and Management, at the University of Witwatersrand, in partial fulfillment of the requirements for the degree of Master of Business Administration Johannesburg 2022 Protocol number: WBS/BA545253/401 ii DECLARATION I, Candy Harris, declare that this research article is my work except as stated in the references and acknowledgements. It is submitted in partial fulfilment of the requirements for the degree of Master of Business Administration in the Graduate School of Business Administration, University of the Witwatersrand, Johannesburg. It has not been submitted before for any degree or examination in this or any other university. Name: Candy Harris Signature: Signed at: Johannesburg On the 31st day of March 2022 iii DEDICATION This report is dedicated to my parents. Thank you for believing in me, supporting me and for constantly pushing me to reach for the stars; for that, I am forever grateful. iv SUPPLEMENTARY INFORMATION Nominated Journal: South African Journal of Economic and Management Sciences Supervisor / Co-author: Chantal Banga Word count: 14 746 Supplementary files: • Appendices • Research instrument • Participant information sheet and consent form • Confirmation of ethics approval • Supervisor evaluation form • Datasets • Data analysis v ABSTRACT This study investigates leadership style and supervisory behaviour on employee wellbeing and performance at two retail banks in South Africa. The study aims to contribute to the existing body of knowledge on management and leadership and with this, provide additional insight into the importance of wellbeing within the two banks. The concepts of motivation and supervisory behaviours were explored in relation to different styles of leadership while the importance of employee wellbeing was further investigated in relation to performance. The study was conducted and analysed using quantitative data that was collected through an online questionnaire. The sample size included 144 employees from two Retail Banks. Most of the sample included back-office managers, professional bankers and analysts which included 50% from Retail Bank A, and the other 50% were from Retail Bank B, both in Sandton, Johannesburg. The study found that democratic and transformational leadership styles were most effective at increasing employee motivation and employee performance. These two forms of leadership styles have a positive influence on productivity, job satisfaction, and overall employee performance. It was also found that the autocratic leadership style had negatively affected supervisory behaviour. Autocratic leadership style demotivated employees causing higher levels of job dissatisfaction. Relationships between supervisory behaviour and employee wellbeing together with employee performance were also identified. Keywords: Leadership Style; Supervisory Behaviour; Employee Wellbeing; Employee Performance; Banks; South Africa 6 Table of Contents DECLARATION ..................................................................................................................................... II DEDICATION ....................................................................................................................................... III SUPPLEMENTARY INFORMATION ....................................................................................................... IV ABSTRACT ............................................................................................................................................ V CHAPTER ONE: INTRODUCTION ........................................................................................................... 9 1.1 BACKGROUND INFORMATION ................................................................................................................... 9 1.2 BACKGROUND ANALYSIS ........................................................................................................................ 10 1.3 CONTEXT OF THE STUDY ........................................................................................................................ 11 1.4 PROBLEM STATEMENT .......................................................................................................................... 13 1.5 PROBLEM ANALYSIS .............................................................................................................................. 14 1.6 RESEARCH PURPOSE ............................................................................................................................. 15 1.7 RESEARCH OBJECTIVES .......................................................................................................................... 15 1.8 RESEARCH QUESTIONS .......................................................................................................................... 16 1.9 RESEARCH HYPOTHESES ........................................................................................................................ 16 1.9.1 Hypothesis 1 ............................................................................................................................ 16 1.9.2 Hypothesis 2 ............................................................................................................................ 16 1.9.3 Hypothesis 3 ............................................................................................................................ 17 1.9.4 Hypothesis 4 ............................................................................................................................ 17 1.10 DELIMITATIONS OF THE STUDY .............................................................................................................. 17 1.11 ASSUMPTIONS OF THE STUDY ............................................................................................................... 18 1.12 SIGNIFICANCE OF THE STUDY ................................................................................................................ 18 1.13 RATIONALE OF THE STUDY ................................................................................................................... 19 1.14 DEFINITION OF TERMS ......................................................................................................................... 20 1.15 PREFACE TO THE RESEARCH .................................................................................................................. 21 1.16 LAYOUT OF STUDY .............................................................................................................................. 22 1.7 CONCLUSION ....................................................................................................................................... 22 CHAPTER TWO: THEORETICAL FOUNDATIONS, LITERATURE REVIEW AND THEORETICAL FRAMEWORK ........................................................................................................................................................... 23 2.1 INTRODUCTION .................................................................................................................................... 23 2.2 THEORETICAL FOUNDATIONS .................................................................................................................. 23 2.2.1 Leadership Theories ................................................................................................................ 23 2.2.2 Supervisory Behaviour ............................................................................................................. 25 2.2.3 Employee Wellbeing ................................................................................................................ 26 7 2.2.4 Performance ............................................................................................................................ 26 2.3 LITERATURE REVIEW ............................................................................................................................. 26 2.3.1 Leadership Style ...................................................................................................................... 26 2.3.2 Leadership Styles and Motivation ........................................................................................... 28 2.3.3 Impact of Leadership Style on Supervisory Behaviour ............................................................. 29 2.3.4 Effects of Employee Wellbeing ................................................................................................ 30 2.3.5 Effects of Employee Wellbeing Levels on Performance ........................................................... 30 2.4 GAPS IN THE LITERATURE ....................................................................................................................... 30 2.5 THEORETICAL FRAMEWORK .................................................................................................................... 31 2.6 CONCLUSION ....................................................................................................................................... 32 CHAPTER THREE: RESEARCH METHODOLOGY ..................................................................................... 33 3.1 INTRODUCTION .................................................................................................................................... 33 3.2 RESEARCH PARADIGMS ......................................................................................................................... 33 3.3 RESEARCH APPROACH ........................................................................................................................... 34 3.4 RESEARCH DESIGN ............................................................................................................................... 34 3.5 RESEARCH CHOICES .............................................................................................................................. 35 3.6 TIME HORIZON .................................................................................................................................... 35 3.8 RESEARCH PROCEDURES AND TECHNIQUES ............................................................................................... 35 3.8.1 Target Population ................................................................................................................... 35 3.8.2 Sampling ................................................................................................................................. 35 3.8.3 Data Collection ........................................................................................................................ 36 3.8.4 Data Analysis Units ................................................................................................................. 36 3.9 THE RELIABILITY AND VALIDITY OF THE DATA ............................................................................................. 37 3.9.1 CRONBACH ALPHA RESULTS ........................................................................................................... 37 3.10 ETHICAL CONSIDERATIONS ................................................................................................................... 38 3.11 LIMITATIONS OF THE STUDY ................................................................................................................. 38 3.12 CONCLUSION ..................................................................................................................................... 39 CHAPTER FOUR: FINDINGS .................................................................................................................. 40 4.1 INTRODUCTION .................................................................................................................................... 40 4.2 DEMOGRAPHICS .................................................................................................................................. 40 4.2.1 Age .......................................................................................................................................... 40 4.2.2 Population Group .................................................................................................................... 42 4.2.3. Gender .................................................................................................................................... 43 4.3 RELIABILITY ANALYSIS ........................................................................................................................... 45 4.4 RESEARCH QUESTION 1 ......................................................................................................................... 46 4.4.1 Descriptive Statistics ............................................................................................................... 46 4.5 RESEARCH QUESTION 2 ......................................................................................................................... 48 8 4.5.1 Descriptive statistics ................................................................................................................ 49 4.6 RESEARCH QUESTION 3 ......................................................................................................................... 52 4.6.1 Descriptive Statistics ............................................................................................................... 52 4.7 RESEARCH QUESTION 4 ......................................................................................................................... 53 4.7.1 Descriptive Statistics ............................................................................................................... 54 4.8 LIMITATIONS OF THE FINDINGS ............................................................................................................... 55 4.9 CONCLUSION ....................................................................................................................................... 55 CHAPTER FIVE: DISCUSSION OF FINDINGS ........................................................................................... 56 5.1 INTRODUCTION .................................................................................................................................... 56 5.2 DISCUSSION OF THE FINDINGS RELATED TO THE RESEARCH OBJECTIVES .......................................................... 56 5.3 DISCUSSION OF THE FINDINGS RELATED TO THE THEORETICAL FRAMEWORK .................................................... 58 5.4 DISCUSSIONS OF THE FINDINGS RELATED TO THE LITERATURE REVIEW ............................................................ 59 5.5 DISCUSSION OF THE FINDINGS RELATED TO THE ASSUMPTIONS OF THE STUDY .................................................. 59 5.6 CONTRIBUTION OF THE STUDY ................................................................................................................ 60 5.7 CONCLUSION ....................................................................................................................................... 61 CHAPTER SIX: CONCLUSION AND RECOMMENDATIONS ...................................................................... 62 6.1 CONCLUSION ....................................................................................................................................... 62 6.2 RECOMMENDATIONS ............................................................................................................................ 63 6.3 FUTURE RESEARCH ............................................................................................................................... 64 REFERENCES ....................................................................................................................................... 65 9 CHAPTER ONE: INTRODUCTION 1.1 Background Information Leaders are a fundamental element that influences the attitudes of employees towards their work (Christian, Garza, & Slaughter, 2011). Leadership is often categorised into styles that comprise a mixture between behaviours, characteristics and traits (Al Khajeh, 2018). Given the number of factors in leadership, it is beneficial to gain a deeper understanding. The idea of effective leadership through the use of leadership styles focuses on styles such as transformational, democratic, autocratic and charismatic among many others (Al Khajeh, 2018), providing researchers with many avenues to explore. Supervisory behaviours can either be negative or positive. A large portion of research on the concept of abusive supervision has concentrated on the consequences linked to both individuals and organisations (Khan, Moss, Quratulain, & Hameed, 2018). The consequences of supervisory behaviours should be mitigated therefore investigating the causes is beneficial to stakeholders. The concept of wellbeing in prior research has comprised two perspectives namely; the eudaemonic and hedonic (Mansfield, Daykin, & Kay, 2020). Wellbeing has been linked to life satisfaction and happiness and positive and negative affect (Dodge, Daly, Huyton, & Sanders, 2012; Mansfield et al., 2020). The concept of wellbeing should be explored in employees, this could ultimately improve the organisation. Previous studies on performance have planned theories to predict work performance and although there are multiple theories, researchers agree that leadership behaviours are essential for the improvement of performance (Caillier, 2014). An investigation into the influences of these behaviours is necessary to establish methods to enhance performance. 10 1.2 Background Analysis The emergence of the global COVID-19 pandemic had changed work. During the many lockdown periods, banks in South Africa started using a hybrid work model (Li, Liao & Huang, 2021). This hybrid work model allowed management and staff to work rotationally. Some staff had to work at the branches and offices. These staff included client-facing individuals, whereas staff who operated the back office, support services or in management functions could work remotely. Working remotely during a crisis made the management of people and activities very challenging and this has called for different and innovative forms of management and leadership (Peltokorpi and Ramaswami (2021). Authors Li, Liao, Shao and Huang (2021) pointed out that managing part of the staff at offices, others at branches and the rest from home and other remote areas posed challenges in ensuring that daily tasks were executed well and that customers were handled with care and respect as managers could not oversee employees working remotely. Employees working from home became demotivated, others become stressed, and the rest lost direction without close supervision and guidance (Murphy, 2020). Initial literature on leadership mainly focuses on the characteristics of the various leadership styles and their effectiveness, however, the extent to which these styles influenced supervisory behaviours was not thoroughly explored. Research studies have shown that abusive supervision was linked to negative outcomes such as psychological stress (Scheuer, Burton, Barber, Finkelstein, & Parker, 2016). Prior research on wellbeing such as Peiró, Kozusznik, Rodríguez- Molina, and Tordera (2019), and A. Jain, Leka, and Zwetsloot (2018), focused on the components that made up wellbeing and how to manage wellbeing, however, studies pertaining specifically to the factors that negatively influenced wellbeing from a leadership perspective were lacking. The focus of this study was on how leadership styles influenced employee wellbeing under various hybrid work models brought about by the COVID-19 pandemic and whether these styles had a positive or negative effect on employee wellbeing. Furthermore, the study went on to explore the effect on performance 11 and whether negative leadership styles had affected both wellbeing and employee performance within the two retail banks in South Africa. 1.3 Context of the Study The interconnectedness and increase in globalisation have resulted in both positive and negative outcomes in the world today. One of the most notable events that brought about many severe consequences was the global, COVID- 19 pandemic. Along with unprecedented uncertainty, the pandemic has also resulted in various economic challenges. At the forefront of these economic challenges lies the banking sector which faced increased strain. According to Barua and Barua (2020), the economic effects caused by the pandemic were some of the greatest since the global financial crisis of 2008-2009, with the estimated global cost of the pandemic sitting at approximately $5.8-$8.8 trillion. The climate brought about by the pandemic was expected to negatively affect the stability of banks because of factors such as decreased financial performance (Elnahass, Trinh, & Li, 2021), thus exploring methods to counteract these effects was necessary. Banks had to change the way they operated as there had been many branch closures around the world (Marcu, 2021), creating a significantly unfamiliar business environment to the one pre-pandemic. Along with this changing environment, the expectations of banks were likely to increase as they needed to act as fundamental stabilisers for all stakeholders (Buehler et al., 2020). This increased responsibility required banks to be strong in their leadership, operations, and performance across all sectors (Murphy, 2020). The South African banking system was described as developed and efficiently regulated (Moyo, 2018), despite the country facing many socio-economic challenges. These socio-economic challenges were exacerbated by a lockdown period that lasted over 100 days (De Villiers, Cerbone, & Van Zijl, 2020), placing South African banks in an unfavourable position. It was, therefore, important to establish how to strengthen these organisations and improve performance. South African banks faced serious challenges such as demotivated staff as there was 12 a feeling of job uncertainty after many banks retrenched staff during COVID-19. Other challenges presented themselves in diminishing sales, decreased profit margins, and loss of customers. These problems according to De Villiers et al. (2020) resulted in job dissatisfaction, a psychological disconnect from the workplace, increased stress and workplace fatigue, unstable employee relationships, difficulty in managing employee performance and the inability to reach business objectives and adequate wellbeing (Collings, Nyberg, Wright, & McMackin, 2021). Such challenges required a strong and dynamic form of leadership to navigate through the challenges of working in an unplanned and chaotic environment with an uncertain economic downturn (Valodia, Sun, & Zachariah, 2018). Furthermore, the concept of wellbeing had become increasingly important since the start of the pandemic. Many employees had to work remotely during the COVID-19 outbreak which affected their wellbeing (Collings et al., 2021). Hence, the two retail banks, identified as Bank A and Bank B, thereinafter, referred to as the two Retail Banks were tasked with managing employee wellbeing given those circumstances. Employees were then faced with not only work-related stress, but stress also linked directly and indirectly to the pandemic. The banking sector has often been characterised as stressful (Dartey-Baah & Ampofo, 2015), and with this, research into employee wellbeing influences was deemed valuable. In trying economic times, performing banks often come under scrutiny. As the expectation of banks has increased, financial performance measurements are being used to determine the impact of the outbreak (Elnahass et al., 2021), this will provide stakeholders with the information to strategise methods to increase future performance. Despite this, a contributing factor to performance within an organisation is human capital. Motivation is a key driving force behind positive employee performance (Khan, Ahmed, Paul, & Kazmi, 2018), and to drive this, banks need to establish what the motivating factors are. The behaviours of supervisors within the workplace vary based on many elements. 13 It can be said that abusive supervision is based on employees’ perceptions of the abuse and how each individual receives the behaviour (Tepper, 2000). This means that in South African banks, the perception and how employees receive certain behaviours will be based on their different cultural, racial, and religious backgrounds. Leadership is an important factor when evaluating the operations of an organisation and according to Hoque (2016), it can determine whether an organisation is successful. South African banks require leaders who can effectively lead the organisation given the diverse workforce and the challenging economic climate. The requirements for leaders have developed over the years and the reliance on hierarchal positioning is no longer adequate to effectively manage employees (Hoque, 2016), making the leadership role increasingly more difficult. 1.4 Problem Statement Because of the effects of the COVID-19 pandemic, the two Retail South African banks were under increasing strain (Burger & Calitz, 2021). The inability of leaders to identify and implement the most effective leadership style for motivating employees resulted in a demotivated workforce that affected performance (Pancasila, Haryono, & Sulistyo, 2020). Considering the already strained environment and the crucial role that banks play, the overall consequences could be detrimental to the economy. Each leadership style was loosely characterised by a certain set of behaviours (Berkovich, 2018; Limsila & Ogunlana, 2008), which may predict how supervisors behave. This can prove beneficial if the leadership style is deemed effective and results in positive behaviours, however, a display of negative behaviours results in adverse effects on employees such as decreased performance, engagement and job satisfaction (Pradhan & Jena, 2017), all of which are detrimental to the organisation. Employees were increasingly more susceptible to a decline in wellbeing because of the impact of the pandemic and working remotely (Gigauri, 2020). According 14 to Guest (2017), low levels of wellbeing resulted in psychological illness and increased absenteeism. This was costly to organisations as time is spent managing the absence of employees (Silcox, 2016). Poor wellbeing among employees increased workplace accidents and employee turnover; this negatively affected the organisation’s reputation, which deterred future candidates (Silcox, 2016). If the problem was left unaddressed, the future success of the organisation would be jeopardised. Increased uncertainty and psychological stress because of the pandemic had negatively affected employees (De-la-Calle-Durán & Rodríguez-Sánchez, 2021). As psychological stress was viewed as a dimension of wellbeing (Guest, 2017), an increase would lead to poor wellbeing. Poor wellbeing among employees is an organisational problem as it negatively affects productivity and performance (Kowalski & Loretto, 2017). As decreased performance within an organisation could hinder overall success, it was essential to explore the relationship. 1.5 Problem Analysis Sub-problem One The absence of effective leadership can affect the organisation’s reputation which could lead to employees having a negative perception of the firm. This perception would contribute to decreased motivation as employees do not buy into the vision and the values of the organisation. A demotivated workforce is less likely to exceed expectations which could hinder the growth of the organisation and lead to potential deviant workplace behaviours, therefore it is essential to establish effective leadership practices. Sub-problem Two Leadership styles can negatively affect supervisory behaviours resulting in a myriad of consequences for the organisation however, the effect can also be positive. Supervisory behaviours are often determined by the individual but following a particular leadership style can provide guidance on how the supervisor 15 should behave. If an ineffective style is channelled, the associated behaviours will most likely be negative. Sub-problem Three As human capital is one of the primary resources of an organisation, it is understandable why negative influences on employee wellbeing would hinder progress. With the complexities of the standard business environment, organisations already struggle to achieve and maintain a competitive advantage. Organisations that do not prioritise and address the needs of employees will fall short and potentially lose high-quality employees to rival companies. Sub-problem Four It was vital to address this problem as decreased performance because of poor wellbeing will affect the organisation through increased absenteeism and a negative work environment. This environment hinders performance as it is not conducive to creativity and innovation which are needed to gain a competitive advantage and ultimately increase performance. Performance will also suffer because of a decrease in time spent on tasks by management who will instead be handling matters linked to employee wellbeing. 1.6 Research Purpose This study aimed to investigate leadership styles and supervisory behaviour on employee wellbeing and performance in two retail South African banks, based in Sandton, Johannesburg. 1.7 Research Objectives The study had the following objectives: 1. To investigate which leadership style was most effective at increasing employee motivation? 2. To investigate how leadership styles affected supervisory behaviour. 3. To investigate what influenced employee wellbeing. 16 4. To investigate the effects of employee wellbeing levels on employee performance 1.8 Research Questions The study asked the following research questions: 1. What style of leadership was most effective at increasing employee motivation? 2. What effect do leadership styles have on supervisory behaviour? 3. What was influencing employee wellbeing? 4. What effect do the levels of employee wellbeing have on employee performance? 1.9 Research Hypotheses This study hypothesised: 1.9.1 Hypothesis 1 H1a: Democratic and transformational leadership styles will cause increased employee motivation. H1b: Democratic and transformational leadership styles will not increase employee motivation. 1.9.2 Hypothesis 2 H2a: Democratic and transformational leadership styles will positively affect supervisory behaviour. H2b: Democratic and transformational leadership styles will not affect supervisory behaviour. 17 1.9.3 Hypothesis 3 H3a: There is a positive relationship between supervisory behaviour and employee wellbeing H3b: There is no relationship between supervisory behaviour and employee wellbeing 1.9.4 Hypothesis 4 H4a: There is a positive relationship between employee wellbeing and performance H4b: There is no relationship between employee wellbeing and performance 1.10 Delimitations of the study The research delimitations of this study are outlined below. This study covered: a) Leadership styles: democratic, authoritarian/autocratic, and transformational as they have distinct characteristics. b) Non-physical forms of supervisory behaviours as they apply to the study. c) Supervisory behaviours within the workplace, to determine the organisational effects. d) Psychological, physical, and social wellbeing as these outcomes are measurable. e) Employee performance outcomes: motivation, and inspiration as these outcomes are measurable. The study did not cover: a) Leadership styles that fell outside of democratic, autocratic, and transformational as they did not apply to the study. 18 b) Physical forms of supervisory behaviour as they did not apply to the study. c) Supervisory behaviour outside of the workplace as it fell outside of the scope of the study. d) Employees outside of South Africa as it does not fall within the scope of the study. 1.11 Assumptions of the study The following research assumptions were made: a) Certain leadership styles were more effective than others. b) A particular set of behaviours characterise a specific style of leadership. c) Not all supervisors displayed the same supervisory behaviours. d) Supervisory behaviour was influenced by leadership style. e) Employees’ wellbeing was affected by supervisory behaviours. d) Respondents answered the questionnaire truthfully and based their answers on their personal experiences. 1.12 Significance of the study Leaders are primarily responsible for steering organisations towards success, and the behaviours which characterise certain leadership styles have been said to affect the performance of employees (Naeem & Khurram, 2020). Although there have been prior research on these variables, it has not specifically been done in South African banks. The studies did not consider the added aspect of employee wellbeing, especially during a tumultuous global pandemic. The absence of these collective variables in previous work justified the significance of this study. This study will contribute to management knowledge by identifying the effects of different leadership styles and providing a better understanding of the connection 19 between these styles and supervisory behaviours. As much of the significance of the study is seen through its geographical context, the elements of cultural and racial diversity, as well as high poverty and unemployment rates (De Villiers et al., 2020), provide for a unique angle of exploration which has not been previously covered. With an increase in diversity amongst leadership comes a need to better understand effective leadership styles and supervisory behaviours. This will reflect the progression of the entire organisation. To curb the spread of the pandemic, governments across the world introduced measures such as quarantines, social-distancing lockdowns and the closure of businesses that were deemed non-essential (Demirgüç-Kunt, Pedraza, & Ruiz- Ortega, 2021). These measures not only had economic ramifications but affected the wellbeing of individuals. This study will illustrate the importance of employee wellbeing and its role in performance, especially during times of uncertainty. Understanding these research variables and the suggested approaches will assist researchers in further exploring critical areas in management studies that were not previously covered because of the absence of the pandemic. Overall, this study will benefit the two retail banks and leadership teams looking to understand the influences on employee wellbeing, performance, and leadership practices. An increased understanding by leadership may also help employees working under management. 1.13 Rationale of the Study Since the COVID-19 pandemic, there has been an emphasis on mental and physical health. The pandemic has also changed traditional work environments for many organisations, with an increase in employees working from home due to enforced lockdowns (Dubey & Tripathi, 2020). According to Xiao, Becerik- Gerber, Lucas, and Roll (2021), even after the pandemic, many employees will continue to work from home; however, this may have negative consequences on 20 their mental health and physical health, including increased stress and anxiety. The shift towards a new style of working and its impact on employees highlights the importance of further investigating the influencing factors on employee wellbeing and performance (De Villiers et al., 2020). Leadership styles are associated with certain behaviours carried out by supervisors. If these behaviours are detrimental to employee motivation, it is crucial to understand the driving forces behind the behaviours. Once this is understood, organisations can improve motivation by using the most effective styles. Employee performance is of paramount importance for organisational success; therefore, exploring wellbeing as a possible influencing factor is essential (Xiao et al., 2021). 1.14 Definition of terms The table below outlines the keywords and concepts found in this study. Table 0-1.1: Definition of terms Term Definition Leadership Style The set of behaviours used by a leader to increase their influence over their followers (Opoku, Ahmed, & Cruickshank, 2015). Supervisory Behaviour A supervisor handles the management of people pertaining to their work tasks and is given the authority to direct, as well as the responsibilities of leading, planning, decision-making and interacting with people (Mahlangu & Govender, 2015). Specific to this study: Supervisory behaviour is concerned with all behaviours carried out by supervisors within the workplace (researcher’s definition). 21 Wellbeing Hedonic psychological wellbeing is the experience of moods, feelings and emotions which are positive (Robertson & Cooper, 2010). Eudaemonic psychological wellbeing is associated with individual purpose (Robertson & Cooper, 2010). A person’s level of satisfaction with their team, work environment and supervisor (Baptiste, 2008). Depression, enthusiasm, dissatisfaction, anxiety and satisfaction are covered by psychological wellbeing whereas physical wellbeing captures aspects of health including stress, energy levels and exhaustion; lastly, trust within relationships, fairness and support structures are covered by social wellbeing (Guest, 2017; Warr, 1990). Performance The achievement of work by employees within an organisation, to reach the targets that have been set (Dewi & Wibow, 2020). A contribution to organisational goals made by an employee through the use of actions and behaviours (Viswesvaran & Ones, 2000). 1.15 Preface to the research The interest in this area of study stems from the researcher’s prior professional work experience within the private banking sector. The researcher encountered positive and negative forms of leadership, the latter of which resulted in significant detrimental effects on overall wellbeing. These experiences resulted in a passion for identifying effective leadership styles and management practices, as well as highlighting the importance of employee wellbeing. The COVID-19 pandemic was a reminder of the unpredictability associated with life, as well as the global business environment. As a result, there has been an increased focus on wellbeing and on the adaptability of businesses to survive times of uncertainty. The impact of the pandemic along with the researcher’s personal experiences has served as a motivation for this study. 22 1.16 Layout of Study This study follows the format below: Chapter 1: Background information, research context, research problems, research objectives, delimitations, and key definitions. Chapter 2: A literature review on the key variables of the study: leadership styles, supervisory behaviour, employee wellbeing and performance. Chapter 3: The research design and methodology used. Chapter 4: Data analysis results and limitations. Chapter 5: Discussion on results. Chapter 6: Conclusion and recommendations. 1.7 Conclusion The next chapter will discuss the theoretical foundations of the study followed by a review of the literature relative to this study. Lastly, the chapter will outline the theoretical framework. 23 CHAPTER TWO: THEORETICAL FOUNDATIONS, LITERATURE REVIEW AND THEORETICAL FRAMEWORK 2.1 Introduction This chapter serves to identify and present the previous academic literature on the variables under study. It allows for key fundamental theories to be identified as well as gaps within the literature. 2.2 Theoretical Foundations 2.2.1 Leadership Theories Leadership theories allow for the examination of the leadership concept from different perspectives. Considering these perspectives contributes to the richness of the study and creates room for further research. The first theory identified is the transformational leadership theory. James MacGregor Burns (1978) first coined the concept of “transformational leadership theory.” According to Burns (1978), transformational leadership theory is when greater motivation levels and morale are achieved among leaders and followers through the process of assisting each other. Transformational leaders are idealised as they serve as a moral exemplar of working towards the benefit of everyone and improve organisational culture, which may result in increased performance (Wen, Ho, Kelana, Othman, & Syed, 2019). Furthermore, Kotlyar and Karakowsky (2007) stated that transformational leaders often have a positive impact on their followers. The practice of transformational leadership allows for the psychological needs of employees to be met as leaders will actively shape the perceptions of employees (Kovjanic, Schuh, Jonas, Quaquebeke & Van Dick, 2012). 24 The second theory focuses on participation. The “participative theory” states that leaders actively engage with their followers and encourage their participation in decision-making processes, ultimately resulting in their followers feeling a sense of importance and commitment to the cause (Amanchukwu et al., 2015). The motivational model of this theory, believes that when followers actively take part in decision making, their motivation increases and therefore their performance increases (Huang et al., 2010). When leaders practice behaviours that positively engage employees, they foster an environment of unleashed opportunity. The third theory on leadership relates to the behavioural theory. The “behavioural theory,” is of the view that leaders are made (Amanchukwu et al., 2015), and with this, individuals can learn and gain the skills required for leadership (Sethuraman & Suresh, 2014). In this study, the behavioural theory proves useful as it allows for supervisory behaviour to be investigated from a perspective of learned behaviours. Analysis from this perspective can provide a foundation for identifying methods to improve leadership behaviours. The fourth theory on leadership is “situational leadership,” which was first termed by Hersey and Blanchard (1969;1979). This theory is of the belief that leaders should adapt their approach and tasks according to the level of maturity that their followers display (McCleskey, 2014). This theory also requires the leader to choose a suitable leadership style for a particular situation in order to effectively lead (Thompson & Glasø, 2015). Figure 2.1 Situational Leadership 25 Note. The Situational Leadership Model originally developed by Dr. Paul Hersey. From Situational Leadership, by The Center For Leadership Studies, n.d. (https://situational.com/situational-leadership/). Copyright 2022 by Leadership Studies, Inc. The above model depicts four different styles that can be used by a situational leader to direct followers. The styles range from a more autocratic style to a more democratic style, each one, providing a different level of involvement from the leader. 2.2.2 Supervisory Behaviour Social exchange theory is based on a reciprocal relationship between two parties whereby one party will reciprocate the actions of the other, whether good or bad (Cropanzano, Anthony, Daniels, & Hall, 2017). Organisational behaviours that fall under the social exchange theory focus on the leader’s treatment towards the follower, the follower’s attitude and behavioural response to the treatment and the formation of the relationship thereafter (Cropanzano, Anthony, et al., 2017). According to Guohong Helen, Harms, and Yuntao (2017), in line with the social exchange theory, employees who fall victim to abusive supervisory behaviours may partake in workplace deviance or underperform to reciprocate the negative 26 treatment they have received. This theory proves relevant for this study as it provides a foundation on which the researcher can further explore supervisory behaviour. 2.2.3 Employee Wellbeing The Affective events theory (AET) is concerned with affective changes in individuals and the influences that these changes have on behaviours related to performance (Cropanzano, Dasborough, & Weiss, 2017). Central to this theory are emotions and the workplace events that cause these emotions and changes in affective states (Cropanzano, Dasborough, et al., 2017). Affective emotions that are triggered by events in the workplace can include annoyance, anger, happiness, anxiety and depression (Ilies, Aw, & Pluut, 2015), all of which apply to the study of employee specific wellbeing. 2.2.4 Performance Herzberg’s Two-factor theory is concerned with the determinants of job satisfaction amongst employees. The theory identifies factors that lower employee morale such as the methods used by management and supervisory behaviours (Badubi, 2017). The theory is also concerned with hygiene (Alshmemri, Shahwan-Akl, & Maude, 2017), which is inclusive of relationships within the workplace (Thant & Chang, 2020). The relevance is seen when investigating the relationship between supervisors and subordinates. 2.3 Literature Review 2.3.1 Leadership Style In prior studies, the authoritarian leadership style otherwise known as autocratic (Fiaz, Su, Ikram, & Saqib, 2017), which will be used interchangeably in this study, has been described as ineffective and a positive relationship to abusive supervision has been established (Gabler, Nagy, & Hill, 2014; Pyc, Meltzer, & Liu, 2017; Yucheng & Timothy, 2016). It has been found that leaders who use an 27 authoritarian style of leadership make organisational decisions with minimal or no input from others and coerce employees to cooperate in organisational activities through the use of punishment and reward tactics (Duan, Bao, Huang, & Brinsfield, 2018; Gu, Hempel, & Yu, 2020; Rahbi, Khalid, & Khan, 2017). It can also be said that autocratic leaders are viewed as micromanagers (Marianne Tromp & Jan Blomme, 2014). With this, autocratic leadership is viewed as a potential threat to the wellbeing of employees. According to De Hoogh, Greer, and Den Hartog (2015), the behaviours associated with authoritative leadership can lead to the unfair treatment of employees, it can also leave them feeling unappreciated, all of which results in negative psychological affects. The results suggests that it may be categorised as ineffective. Despite authoritarian leadership being viewed as ineffective, Zhang, Lin, and Foo (2012) believe that it can be effective if there are extensive issues to be tackled. To support this, Wang and Guan (2018) suggest that authoritarian leadership might increase performance and motivate employees. It is possible that this leadership style can increase performance due to increased focus by employees. According to Chukwusa (2018), employees can more effectively focus on their tasks without the added responsibility of decide. This reduced responsibility might influence overall wellbeing. Democratic leadership is a style that differs vastly from the control of authoritative mainly because of its egalitarian approach (Caillier, 2020). This leadership style is characterised by de-centralised decision making whereby the leader involves employees in the decision-making process and consults them before issuing orders (Hilton, Arkorful, & Martins, 2021). According to Miao, Newman, Schwarz, and Xu (2013), supervisors who make use of this leadership style evoke high levels of trust amongst employees. Trust is an important catalyst for employee wellbeing and performance. Should employees mistrust their supervisor, they may interpret their environment as unsafe. One disadvantage of democratic leadership is that a decision-making process that requires input from others may cause a delay (Fatima, Majeed, & Saeed, 2017; Ugwu, Okoroji, & Chukwu, 2018). Delays could prove detrimental to the 28 organisation when faced with time-sensitive matters. Researchers are also of the belief that collaborative decision-making is not always appropriate especially when faced with complex decisions as employees may lack the required knowledge (MALOŞ, 2012), potentially affecting their self-esteem upon realisation. Transformational leadership is characterised by the following four components: individualised consideration (IC), inspirational motivation (IM), idealised influence (II) and intellectual stimulation (IS) (Carleton, Barling, & Trivisonno, 2018; Cetin & Kinik, 2015). According to Koveshnikov and Ehrnrooth (2018), IC occurs when the leader is supportive of employees and their emotional needs. The recognition of emotional needs is beneficial as the structures of support can be put in place. It can be said that II and IM work together to bring about shared values and visions (Budur & Poturak, 2021) and II sees leaders exhibiting ethical behaviours which lead employees to view them as role models (Alsayyed, Suifan, Sweis, & Kilani, 2020). Leaders that can encourage creativity and innovation amongst employees can be said to be practising the IS dimension of transformational leadership (Alqatawenh, 2018), which will benefit the growth of the organisation. A transformational leader who constantly displays behaviours linked to motivation and positive influence may create a feeling of pressure amongst employees to not only feel the same but to constantly work towards the shared vision (Collins, Owen, Digan, & Dunn, 2019). Any form of increased pressure comes with the risk of negatively affecting employee wellbeing. Chung and Li (2021) believe that the increased pressure to produce innovative ideas, can lead to exhaustion, stress, anxiety, and other adverse psychological effects. Once again resulting in the impact on wellbeing being attributed to a style of leadership. 2.3.2 Leadership Styles and Motivation According to Bodla, Tang, Van Dick, and Mir (2019) an authoritative leader is often characterised as being rigid, with the subsequent effect being an inability to motivate employees. In agreement with this, Fiaz et al. (2017) states that an increased prevalence of autocratic leadership will cause a lack of employee 29 motivation. Autocratic leaders rely on their system of rewards and punishment to stimulate motivation amongst employees (M. S. Khan et al., 2015), although punishment may come with the risk of employees’ adopting a negative view of the leader. Democratic leadership, otherwise known as participative leadership allows employees to feel more invested because of their inclusion in the decision-making process, increasing their motivation (Xu, 2017). According to Sagnak (2016), an increase in intrinsic motivation amongst employees can be attributed to participative leadership. This demonstrates a possible link between leadership styles and motivation. Transformational leadership can foster motivation in employees through the use of IM. Leaders who practice IM, do so through the creation of a vision that is both shared and inspiring, along with this they can gain employee agreement by articulating the importance of organisational goals (Boukamcha, 2019; Shafi, Lei, Song, & Sarker, 2020). When employees believe in the organisational vision, they are motivated to work towards it. 2.3.3 Impact of Leadership Style on Supervisory Behaviour The trickle-down effect states that how supervisors treat their subordinates either positively or negatively influences their performance, behaviours and attitudes (Chi, Chen, Huang, & Chen, 2018). Supervisors need to practice good behaviours to create positive influence. To a certain extent, supervisory behaviours can be determined by leadership constructs (Heimann, Ingold, & Kleinmann, 2020), therefore it is necessary to consider leadership styles. The effects associated with abusive supervisory behaviours include psychological distress and poor attitudes associated with work (Tepper, 2000). Employees who fall victim to abusive supervision are said to suffer from emotional exhaustion and increased stress levels (Lim, Koay, & Chong, 2020) therefore an effective leadership style is needed in order to ultimately mitigate decreased wellbeing. 30 2.3.4 Effects of Employee Wellbeing Four prior studies have shown that employee wellbeing results in increased job satisfaction, performance, and productivity (Peiró et al., 2019; Thomas A & Ching- Chu, 2012; Troup, 2011; Vakkayil, Della Torre, & Giangreco, 2017). However, a lack of employee wellbeing has been linked to poor performance, negative attitudes, anxiety and depression (Baptiste, 2008; A. K. Jain, Giga, & Cooper, 2009). Mental health forms a part of wellbeing (Dodge et al., 2012), and according to Kidger et al. (2016), the biggest contributors to mental health disorders are demanding job roles and negative relationships. In support, Tough, Siegrist, and Fekete (2017) state that favourable interactions in an individual’s social environment will contribute positively to wellbeing. Suggesting that toxic relationships brought about by negative behaviours, will negatively impact wellbeing. 2.3.5 Effects of Employee Wellbeing Levels on Performance Employees perform better when their levels of wellbeing are increased, and should these levels decrease, so will performance (Warr & Nielsen, 2018). It is therefore vital for organisations to understand influences on wellbeing. Employees can make assessments of performance themselves (Warr & Nielsen, 2018), this may provide further insight into the relationship between personal wellbeing and performance outputs. Employee job performance is positively influenced by a healthy work-life balance (Haider, Jabeen, & Ahmad, 2018), this suggests that performance and wellbeing should be further explored in banks which often require long hours from employees. 2.4 Gaps in the Literature Although the variables within this study have been researched extensively, there is still room for the variables to be explored within the context of the two retail banks at which the study was undertaken. Prior research has previously explored the variables of this study; however, they were in banks outside of South Africa. 31 Given that executive teams within South African companies have one of the highest levels of ethnic and cultural diversity and representation (Hunt, Prince, Dixon-Fyle, & Yee, 2018), this study will seek to provide results that are context- specific to a unique workplace demographic. Compared to western countries, the affects of the pandemic are expected to be far more long-term and severe for developing countries like South Africa (De Villiers et al., 2020). A further gap that has been identified is the lack of research conducted on banks within developing countries during the pandemic, which brings about its unique challenges. 2.5 Theoretical Framework FIGURE 2.1: Theoretical Framework Illustrating the Variables Under Study Authoritarian/Autocratic Leadership Transformational Leadership Democratic/Participative Leadership Supervisory Behaviour Employee wellbeing Employee performance 32 2.6 Conclusion This chapter provided the relevant theoretical foundations for the study and a review of the prior literature. The gaps in the literature were discussed and the conceptual framework was developed. The research methodology will be discussed in the next chapter. 33 CHAPTER THREE: RESEARCH METHODOLOGY 3.1 Introduction This chapter explains and outlines the paradigm chosen for this study. This is followed by the descriptions of the research approaches, designs, and methods and the research choices, time horizons, procedures, and techniques. Last, the chapter assessed the reliability and validity of the data, the ethical considerations are discussed and lastly the outline of limitations. 3.2 Research Paradigms The positivism paradigm is described as a research paradigm that is objective based on external, objective, and independent social actors or variables. This research paradigm is based only on observable facts which are credible data focused on causality and data collection methods performed according to highly structured methods (Park, Konge, & Artino, 2020). Research using this paradigm is undertaken in a particular way, making use of surveys and questionnaires as the data collecting tools where the researcher is not directly part of what is being researched and can be independent and objective from the research conducted (Rahi, 2017). The relationship between dependent and independent variables are studied through causal inferences in quantitative research. This enables the researcher to better understand the objects and research objectives through empirical testing and by employing methods like questionnaires. It then allows for large sample sizing and generalisation of results to a wider population (Alharahsheh & Pius, 2020). This study made use of questionnaires to collect the primary data and a relatively large sample size from the two retail banks, hence the use of the positivism approach was deemed most suitable. 34 3.3 Research Approach The research approach was quantitative, which is the analysis of data that can be measured and presented numerically (Goertzen, 2017). It is grounded in the positivism paradigm. Typically, data analysis is performed through statistical analysis. The analysis from quantitative research can establish the relationships between variables being investigated (Schindler, 2019). It relates to probing or questioning through the use of collecting numerical data and analysing such data using statistical methods (Sukamolson, 2007). The sample sizes used in quantitative research are often larger than those used for qualitative research. Some instruments used to collect quantitative data include surveys, questionnaires, correlational research, experimental research, and statistical records analysis (Schindler, 2019). This study was based on the quantitative research approach and a questionnaire was used to collect data. The questionnaires allowed for anonymity which increases the respondent’s honesty, thus contributing to the accuracy of the data. Quantitative data is concerned with the magnitude of an occurrence (Schindler, 2019), and the use of this approach allowed the researcher to determine just how statistically significant the proposed relationships were between the variables stated in the hypotheses. 3.4 Research Design Explanatory design assists with the explanation of quantitative results or builds upon the results (Almeida, 2018). The chosen design for this study was explanatory. According to Almeida (2018), quantitative data is required to begin research when using the explanatory design method. The explanatory design proved suitable for this study as it was concerned with quantitative data. Cause and effect between variables were explained using explanatory research (Schindler, 2019), and as this study sought to understand the effects of leadership style and supervisory behaviour on employee wellbeing and performance, hence this research design was deemed most suitable. 35 3.5 Research Choices The mono method (single method) of research makes assessments of each idea through the use of a single method (Sharma, Yetton, & Crawford, 2009). A single method was used for this study as it was a quantitative-based study which attempted to establish the relationship between leadership styles and performance, through the use of questionnaires. 3.6 Time Horizon A cross-sectional study according to Schindler (2019), is performed once and provides results from a single point in time. As this study was only conducted once and the change in variables over some time was not monitored, a cross- sectional approach was deemed most suitable. 3.8 Research Procedures and Techniques 3.8.1 Target Population The target population for this study were 500 employees from two retail banks based in Sandton, Johannesburg. The target population included senior managers, managers, professionally qualified bankers, and analysts. Most of the target population included back-office staff, management, and analysts, not involved in any branch level or customer facing banking. All the target population were in the geographical area of Johannesburg. 3.8.2 Sampling An objective sampling method is probability sampling and is often aligned with quantitative research methodology (Taherdoost, 2016). Probability sampling methods comprise of simple random, stratified random, cluster sampling, systematic sampling, and multistage sampling (Taherdoost, 2016). With simple random sampling, each member has an equal chance of being selected whereas with stratified sampling, subgroups are created to divide the population thereafter, 36 random selections are made from the groups (Acharya, Prakash, Saxena, & Nigam, 2013). Systematic sampling occurs when selections are made systematically while cluster sampling is when the population is divided into clusters and then randomly selected (Acharya et al, 2013). The chosen sampling method for this study was probability sampling, along with random sampling. Random sampling takes place when every participant within the population has an equal chance of being included in the sample (Acharya et al, 2013). This method was considered the least complex as it only involved a single random selection which could be done with limited knowledge about the population. Random sampling has high internal and external validity, because of the randomisation of the data (Schindler, 2019). The chosen sample for this study comprised 144 employees that worked in both the banks chosen for the study. 3.8.3 Data Collection The instrument chosen for the data collection was a self-administered, online survey questionnaire using Qualtrics. The questionnaire was designed by the researcher and included questions relevant to the study. The advantage of using this data collection method was that the researcher was not actively involved, therefore allowing participants to feel an increased sense of anonymity (Schindler, 2019). A survey questionnaire was also cost-effective as well as reliable for quantitative data (Taherdoost, 2016). 3.8.4 Data Analysis Units The analysis was conducted using the SPSS statistics software as the researcher has prior experience using this software. To analyse the data, the following methods were used: One-way ANOVA analysis, multiple linear regression analysis, bivariate correlation analysis and one-way ANCOVA. 37 3.9 The Reliability and Validity of the Data When assessing the trustworthiness of quantitative data, methods include internal validity, external validity, objectivity and reliability (Yilmaz, 2013). Sufficient external validity was achieved by ensuring the questionnaire comprised questions that covered all relevant aspects of the research area, this was based on the researcher’s judgement (Schindler, 2019). Secondly, through the identification of specific constructs of the study and determining whether the scales fully cover them, the study could ensure construct validity (Schindler, 2019). To ensure internal reliability, the Cronbach alpha technique will determine the consistency of the data under study (Schindler, 2019), with the acceptable Cronbach alpha value sitting at 0.70 which is deemed acceptable in research studies (Peterson, 1994). 3.9.1 Cronbach Alpha Results The Cronbach’s Alpha coefficient method was used in this study to determine reliability. The test provided a scientific indication of the reliability. This allowed for a larger sample to be reached within a short time period. An alpha value of less than 0.5 indicated an unacceptable level of internal reliability. A further explantion of the Cronbach alpha results is detailed in Table 3.1 presented below. Table 3. 1: Meaning of Cronbach’s alpha Alpha Value Meaning > = 0.90 Excellent > = 0.80 < 0.90 Good 38 > = 0.70 < 0.80 Acceptable > = 0.60 < 0.70 Questionable > = 0.50< 0.60 Poor < 0.50 Unacceptable Source: adapted from Akhtar, (2016) In this study, the Cronbach Alpha result was = 0.702 which supported the reliability of the data and was thus used. 3.10 Ethical Considerations Further information about the study was shared with the participants beforehand. They were given the researcher’s contact details, the topic under research, the study objectives, and the reasons behind the study. Before respondents could begin the questionnaire, they had to give their consent to partake in the study. This consent was supported by the guarantee of participant confidentiality. The data collected was not distributed with any other parties and was stored in a folder, on a password-protected laptop to which only the researcher had access. The study did not request any identifying data from participants such as names or identity numbers, ensuring anonymity. The final ethical consideration measure was the application for an ethics clearance certificate from the researcher’s university. No data was collected before the issuing of this certificate. This certificate was issued based on the agreement that the study did not cross any ethical boundaries. 3.11 Limitations of the Study A limitation of this study was the sample size. The study covered South African banks, however, the sample size comprised only 144 respondents. Although significant relationships were identified, conducting the study using a larger sample size may have increased the accuracy of the results. 39 Another limitation of the study was linked to the collection of data. Although the questionnaire was made simple, understandable, and concise, some respondents did not complete the questionnaire. Despite the questionnaire being distributed to many individuals, only a few participated. Time constraints proved to be an additional limitation of the study. As the data needed to be collected by a non-negotiable deadline, it left a short amount of time for the researcher to gather responses. Had there been additional time, the sample size may have been larger. Possible limitations with questionnaires are that the participants may provide inaccurate answers because of misunderstanding what the question is asking or they may grow bored while completing the questionnaire (Rowley, 2014). To counter this, incomplete and vague responses were excluded during data cleaning. The questions were constructed in a clear, concise manner and reviewed by an external party to ensure understanding from various perspectives. To encourage participants to respond, the questionnaire was made concise and the approximate time estimation for completion was given to the participants beforehand. As the survey was online, respondents may have faced technical difficulties like poor internet connection. To tackle this limitation, the platform used to host the questionnaire allowed for completion on a desktop or a mobile device. 3.12 Conclusion This chapter detailed the research design and processes used; it also justified the reasoning behind the chosen methods. The study was conducted using an online questionnaire and analysed using quantitative data and statistical techniques. The chapter then explored the reliability, validity and ethical considerations of the study and concluded with the limitations. The findings of the study will be presented in the next chapter. 40 CHAPTER FOUR: FINDINGS 4.1 Introduction This chapter outlines the results of the quantitative data analysis and the limitations of the findings. Reliability analysis was conducted to establish the internal consistency of the questions used in the study. The one-way ANOVA analysis, multiple linear regression analysis, bivariate correlation analysis and the one-way ANCOVA were then used to answer the four research questions presented in the study. The SPSS software package was used to perform all analyses. 4.2 Demographics Information on demographics provides an understanding of the respondents’ background which may prove useful when analysing the differences in the results of the study. The demographics collected in this study were age, race, and gender. 4.2.1 Age The age distribution of the respondents is shown below in Table 4.1 and Figure 4.1. Table 4.1: Age distribution of the respondents 41 Age group Frequency Percent 18-24 1 .7 25-34 106 74.1 35-44 21 14.7 45-54 4 2.8 55-64 5 3.5 Missing 6 4.2 Total 143 100.0 Figure 4.1: Age vs. Frequency 42 According to table 4.1 and figure 4.1 above, the majority (74.1%) of the respondents represent the 25-34 years age group and at least (0.7%) of the respondents are from the 18–24-year age group. In this graph, 14.7% represent ages 35-44, 2.8% represent ages 45-54 and 3.5% represent the ages 55-64 group. 6 of the respondents have not disclosed their age group. It is evident that more than 93% of the respondents are below 44 years and their responses contain the highest validity. 4.2.2 Population Group Table 4.2 and figure 4.2 below illustrate the population groups that the respondents belong to. Table 4.2: Population group of respondents Population Group Frequency Percent African 56 39.2 Asian 21 14.7 White 44 30.8 Coloured 7 4.9 Prefer not to say 9 6.3 Missing 6 4.2 Total 143 100 43 Figure 4.2: Frequency of population groups According to figure 4.2 above, the majority (39.2%) of the respondents fall under African and at least (4.9%) of the respondents are Coloured. 30.8% of the respondents are White and 14.7% represent Asians. 4.2.3. Gender Table 4.3 and Figure 4.3 below illustrates the gender of the respondents. Table 4.3: Gender of respondents 44 Gender Frequency Percent Male 64 44.8 Female 72 50.3 Prefer not to say 1 0.7 Missing 6 4.2 Total 143 100 Figure 4.3: Gender vs. Frequency According to figure 4.3 above, the majority (50.3%) of the respondents are female. 44.8% are male and only one respondent represents the gender nonconforming group. 45 4.3 Reliability Analysis The constructed questions were analysed using the Reliability Analysis and the results are shown below in table 4.4 The Cronbach's Alpha for the questions raised is 0.702. This shows a good level of internal consistency. Table 4.4: Results of the reliability analysis performed for construct Cronbach's Alpha N of Items 0.702 29 The study used the Likert-like scale questions as shown in tables 4.5 and 4.6 to measure responses for different questions (annexure 1 Questionnaire provides details and questions where two scales were used). Table 4.5: 5-point Likert-like scale used in the questions The study used the 3-point Likert-like scale for some of the questions, as shown in Table 4.6, to measure the supervisory behaviour of transformational leadership. Table 4.6: Likert-like scale used in some of the questions 46 4.4 Research Question 1 • What style of leadership was most effective at increasing employee motivation? • Hypothesis 1a: Democratic and transformational leadership styles will cause increased employee motivation. 4.4.1 Descriptive Statistics The questionnaire used a 5-point Likert-like scale (shown in Table 4.5) to measure the leadership styles and employee motivation. Table 4.7 below presents the descriptive statistics related to the leadership styles of the study. Table 4:7 Descriptive statistics related to employee motivation. 47 As shown in the table above, the means for three of the variables are 3.93, 3.94 and 4.09. This shows that the respondents agreed with three variables that determine employee motivation. The standard deviations for the variables above are all above 1, which suggests increased variance. A one-way ANOVA analysis was performed to determine the influence of leadership style on employee motivation. The average score was calculated for each of the leadership style-based motivations. Leadership style was used as the factor, and employee motivation was used as the response. The following table shows the ANOVA results. Table 4.8: ANOVA results of the employee motivation under three leadership styles. According to the one- way ANOVA results, there is a significant difference in the motivation of the three leadership styles (F=39.52, DF=350, P, 0.001<0.05). Multiple comparisons using the Turkey HSD test were performed for three different leadership styles, and the results are shown in Table 4.9 below. According to the results under resilience, there were significant mean differences observed for Democratic and Autocratic (P,0.001<0.05) and Transformational and Autocratic (P,0.001<0.05). Table 4.9: Results of the multiple comparisons of three different leadership styles. 48 Figure 4.4 below shows the means plot of the employee motivations according to the type of leadership. The highest mean scores are shown as Transformational (3.81±0.96), and the lowest mean is shown as Autocratic (2.67±1.19). Figure 4.4: Means plot of the employee motivation according to the type of leadership. 4.5 Research Question 2 • What effect do leadership styles have on supervisory behaviour? 49 • Hypothesis 2a: Democratic and transformational leadership styles positively effect supervisory behaviour. 4.5.1 Descriptive statistics Table 4.10 below presents the descriptive statistics related to the leadership styles of the study. Table 4:10 Descriptive statistics related to supervisory behaviour 50 Most of the mean values were above 3.00, showing that most respondents agreed with the variables that show supervisory behaviours linked to democratic and transformational leadership styles. The mean values below 3.00 show that respondents who felt that certain inconsistent supervisory behaviours did not occur or were neutral in response. The mean of 2.59 shows respondents who felt their supervisor displayed this behaviour. Most of the variables have a standard deviation of more than one. A multiple linear regression analysis used average scores for supervisory behaviour as the dependent variable and three leadership styles, democratic, autocratic, and transformational, as predictor variables. The results of the analysis are shown below. Table 4.11: Model summary of the multiple linear regression analysis between supervisory behaviour and leadership styles. R Square, the coefficient of determination, is the squared value of the multiple correlation coefficient. According to the table, the model summary shows an R square of 0.691. The regression equation explains 69.1% of the total variance among the variables used to build the relationship. Table 4.12: ANOVA results of the multiple linear regression analysis between supervisory behaviour and leadership styles. 51 The ANOVA table tests the acceptability of the model from a statistical perspective. The Regression row displays information about the variation accounted for by the developed model. The Residual row shows information about the variation that is unaccounted for. The regression sum of squares (24.15) is greater than the residual sum of squares (10.79), showing that the leadership styles explain a more significant portion of the variation in supervisory behaviour. The regression P-value, 0.001, is lower than the alpha level of 0.05; there is a statistically significant relationship between 3 predictor variables; democratic, autocratic, and transformational leadership styles and the dependent variable, supervisory behaviour. Table 4.13: Coefficients of the multiple linear regression analysis between leadership styles and supervisory behaviour. 52 The predictor variable democratic style has a beta coefficient of negative value (β = -0.004), which shows a weak negative relationship with supervisory behaviour. The contribution of Democratic leadership is not statistically significant (P, 0.959>0.05). The predictor variable, Autocratic style, has a negative beta coefficient value (β = -0.4129), showing a weak, negative relationship to supervisory behaviour; however, the contribution of autocratic leadership is found to be statistically significant (P, 0.001<0.05). The transformational leadership style has a positive beta coefficient value (β = 0.595). It shows a positive relationship with supervisory behaviour. The contribution of transformational leadership is significant (P, 0.001<0.05). 4.6 Research Question 3 • What was influencing employee wellbeing? • Hypothesis 3a: There is a positive relationship between supervisory behaviour and employee wellbeing. 4.6.1 Descriptive Statistics Table 4.14 below presents the descriptive statistics related to employee wellbeing. Table 4:14 Descriptive statistics related to employee wellbeing. 53 As shown in table 4.14 above, the mean of 4.79 shows that respondents who have a strong relationship with their supervisor, an aspect of well-being. Respondents also agreed with two variables that represent increased wellbeing. The average score was calculated for employee wellbeing. Pearson’s correlation method used a bivariate correlation analysis to determine the strength and direction of the relations between supervisory behaviour and employee wellbeing. Table 4.15 below shows the results. Table 4.15: Correlations between supervisory behaviour and employee wellbeing. When analysing the results, there is a significant (P, 0.001<0.05), strong positive (r=-0.724) relationship between supervisory behaviour and employee wellbeing. This significance is at a confidence interval of 95%. 4.7 Research Question 4 • What effect do the levels of employee wellbeing have on employee performance? • Hypothesis 4a: There is a positive relationship between employee wellbeing and performance. 54 4.7.1 Descriptive Statistics Table 4.16 below presents the descriptive statistics related to employee performance. Table 4:16: Descriptive statistics related to employee performance. The mean values in the table above are all above 4.00. The table shows respondents agreed with all the wellbeing variables that contribute to performance. Average scores were calculated for employee performance. A bivariate correlation analysis was performed to determine the strength and direction of the relations between employee performance and employee wellbeing using Pearson’s correlation method. Table 4.17 below shows the results. Table 4.17: Correlations between employee performance and employee wellbeing. 55 When analysing the results, there is a significant (P, 0.001<0.05), moderately positive (r= 0.400) relationship between employee performance and employee wellbeing. 4.8 Limitations of the Findings A limitation of the findings is the demographic group of the respondents, as 4.2% were missing, and only a small percentage, 4.9%, fell under “coloured.” This is not a fair representation of all demographics. An additional limitation is that the findings did not address all the leadership theories and literature presented in the study, as the questionnaire could not cover all concepts. 4.9 Conclusion This chapter detailed the results of the data analysis and concluded with the limitations of the findings. The next chapter will present the discussion of the results. 56 CHAPTER FIVE: DISCUSSION OF FINDINGS 5.1 Introduction In this chapter, the most critical findings from chapter 4 are discussed to work towards the conclusion and recommendations for the study. The discussion is based on: • Research objectives of the study • Theoretical foundations • Theoretical framework • Literature Review • Assumptions of the study 5.2 Discussion of the Findings Related to the Research Objectives This discussion is based on the following research objectives of the study: • To investigate which leadership style is most effective at increasing employee motivation. • To investigate how leadership styles impact supervisory behaviour. • To investigate what influences employee wellbeing. • To investigate the effects of employee wellbeing levels on employee performance. The descriptive analysis revealed that respondents agreed that 1) leadership encourages participation and input from others when deciding, 2) leadership inspires and motivates them to reach organisational goals, and 3) leadership can make employees understand the importance of reaching organisational goals. These three variables are characteristics of democratic and transformational leadership, which would indicate these two styles. A relationship between leadership styles and motivation was established using regression analysis. The one-way ANOVA and Turkey HSD test results both had p-values that indicated statistical significance at the 0.05% level (P,0.001<0.05). 57 This significance shows the difference in motivations levels under the different leadership styles. According to the results, the highest motivation levels are seen under the transformational leadership style, while the lowest motivation levels fall under the autocratic style. Democratic and transformational leadership styles result in increased employee motivation; therefore, Hypothesis 1a: Democratic and transformational leadership styles will cause increased employee motivation is accepted. The descriptive analysis of supervisory behaviour shows that many respondents agreed with the variables that show supervisory behaviours linked to democratic and transformational leadership styles. Many respondents also agreed that their supervisor shows compassion and empathy. According to the results, the leadership styles present were democratic and transformational, and supervisors exhibited several the associated behaviour. Multiple linear regression analysis was used to determine the relationship between leadership styles and behaviour. The regression sum of squares (24.15) was greater than the residual sum of squares (10.79), which showed that most of the variance in supervisory behaviour was explained by leadership styles. The findings show a statistically significant relationship as the p-value (0.001) was lower than the alpha level of 5%. The multiple linear regression analysis coefficients illustrated that transformational leadership style has a positive, statistically significant relationship with supervisory behaviours because of a positive beta value (0.595) and a p-value (0.001) less than 5% alpha. The results also showed that democratic leadership (β = -0.004) and autocratic leadership (β = -0.4129), both with negative beta values, have weak, negative relationships to supervisory behaviour. Hence, we can reject Hypothesis 2a: Democratic and transformational leadership styles will positively affect supervisory behaviour, as only transformational style has a significant positive contribution. The descriptive statistics relating to employee wellbeing indicate that the respondents agree with four of the variables linked to increased wellbeing. These variables were tied to their supervisors’ behaviours that elicit certain feelings. 58 When looking at the psychological and physical variables related to wellbeing, the respondents believed that they only experienced adverse affects to these variables “sometimes.” The bivariate correlation analysis revealed that there is a statistically significant (P-value 0.001<0.05), strong positive (r=0.724) relationship between supervisory behaviour and employee wellbeing. A confidence level of 95% was used. Therefore, Hypothesis3a is accepted. The results from the descriptive statistical analysis on employee performance show that the respondents agreed with all the wellbeing variables that contribute to performance. The respondents strongly agreed that, when their supervisor creates an environment where they feel safe, they can perform better. Employees with a perceived sense of increased psychological safety perform better in the workplace (Inuwa, 2016). Therefore, it is essential to understand how all the aspects of employee wellbeing affect performance. These findings could result from respondents led by supervisors who practise positive behaviours, leadership styles and supervisors who have certain personality traits. A bivariate correlation analysis was used to establish whether employee wellbeing affects performance. The strength and directions of the relationship were measured using Pearson’s correlation method. The results found that there is a statistically significant (P, 0.001<0.05), moderately positive (r= 0.400) relationship between employee wellbeing and performance. Hence, Hypothesis 4a: a positive relationship between employee performance and employee wellbeing is accepted. 5.3 Discussion of the Findings Related to the Theoretical Framework The study results are in line with the theoretical framework presented in chapter 2. The multiple linear regression analysis results showed that transformational leadership has a strong relationship to supervisory behaviour and that the remaining two styles have weak, negative relationships. Transformational 59 leadership behaviours such as inspiring, motivating and encouraging creativity amongst employees are said to be effective as they ultimately improve organisational outcomes (Anderson, 2017). To support the theoretical framework, a relationship between employee wellbeing and performance was identified. 5.4 Discussions of the Findings Related to the Literature Review It has been found that employee participation in organisational decision making leads to increased motivation (Irawanto, 2015); this is in line with the study results. This can be linked to the participative theory presented in the earlier literature review. The results show how common positive supervisory behaviours are in this case. According to Vogel and Mitchell (2017), supervisory behaviours deemed abusive can lead employees to partake in deviant workplace behaviours. The study shows that positive supervisory behaviours result in increased employee motivation, which aligns with the exchange-based model presented in chapter 2. Motivation determines whether the employee will do more than what is expected of them with no obligation, and with this, an increase in productivity is expected (Bawa, 2017). The findings indicate that organisational goals are reached through inspiration and motivation, which can be brought about by leadership. This is in line with the inspirational motivation discussed in the literature review. Employee wellbeing has been linked to productivity and overall organisational performance (Krekel, Ward, & De Neve, 2019), which is clear in the results that show a relationship between wellbeing and performance. The results align with the effects on employee wellbeing found in the literature review. 5.5 Discussion of the Findings Related to the Assumptions of the Study This discussion is based on the following assumptions of the study: • Certain leadership styles are more effective than others. • A particular set of behaviour characterises a specific style of leadership. 60 • Not all supervisors display the same supervisory behaviours. • Supervisory behaviour is influenced by leadership style. • Employee wellbeing is affected by supervisory behaviours. • Respondents answered the questionnaire truthfully and based their answers on their personal experiences. According to the results, democratic and transformational leadership styles are more effective than autocratic. The leadership of the two banks should look to the future and be transformational to ensure the businesses has a competitive edge which will ensure long-term sustainability over other banks and probable new entrants to the markets. Secondly, by introducing the democratic leadership, senior bank leaders will involve their subordinates in the decision-making process thus including them in decision making. This will cause employee loyalty and commitment. Loyalty and employee commitment could translate into higher levels of employee performance. The one-way ANOVA and Turkey HSD test results both had p-values that indicated statistical significance (P,0.001<0.05). The results showed that certain behaviours were linked to specific styles of leadership. The results of respondents who answered “sometimes” shows that not all supervisors display the same behaviours, whilst the acceptance of Hypothesis3a supports the assumption that employee wellbeing is affected by supervisory behaviours. The reliability analysis revealed a good level of reliability; however, there is no evidence that the respondents answered truthfully or based their answers on their personal experiences. 5.6 Contribution of the Study This study contributed to management knowledge by identifying democratic and transformational leadership styles as effective means for increasing employee motivation. The study concluded that only transformational leadership positively correlates with supervisory behaviours and that democratic and transformational styles will not negatively affect these behaviours. 61 An additional contribution of this study is the identification of a relationship between supervisory behaviour and wellbeing; this provides knowledge for supervisors in the workplace that are seeking to understand the effects of their behaviours. The influences on employee wellbeing, along with the importance of the concept and the impact on organisations, are identified in this study, contributing to management knowledge. 5.7 Conclusion This chapter discusses the study results while considering the objectives, theoretical framework, literature, and assumptions of the study. The next chapter provides a conclusion, recommendations based on findings and suggestions for future research. 62 CHAPTER SIX: CONCLUSION AND RECOMMENDATIONS 6.1 Conclusion Leadership styles have been studied from the democratic, autocratic, and transformational perspectives, often highlighting their complexities, such as supervisory behaviours. The behaviours were grouped into positive and negative, with the effects of negative behaviour being the focus of many organisations as they aimed to reduce the impact. The absence of effective leadership styles presented a threat to employee motivation, and these leadership styles can affect the behaviour of supervisors. A decline in employee wellbeing often could cause a change in employee behaviours. Wellbeing and the effects on the psychological and physical aspects had provided researchers with a foundation to explore the link to performance within organisations. The study intended to determine the leadership style most beneficial to employee motivation, and it was established that transformational and democratic leadership were most effective. It was concluded that transformational and democratic leadership would affect supervisory behaviour; however, the study revealed that only transformational leadership had a significant, positive contribution. A relationship was found between supervisory behaviour and employee wellbeing, which provided insight into the influences of wellbeing. Last, the study determined that wellbeing and performance have a positive relationship, which established that performance of employees increases along with their wellbeing levels. The study was conducted using quantitative data collected through a questionnaire while ethical and reliability considerations were taken. Despite the adequate findings of the study, limitations relating to the demographics and literature were present. 63 6.2 Recommendations Based on the findings of this study, the recommendations are outlined below. 6.2.1 The banks should hold assessments for supervisors which would determine their behaviour and based on the results, enroll them in training on democratic and transformational leadership styles. 6.2.2 It is recommended that the senior and executive managers of the two banks be trained in transformational leadership styles. This form of training would assist managers in having a long-term view of the banks and lead in a strategic and visionary manner. 6.2.3 The banks should incorporate employee wellbeing programs into the workplace. They should assess employee performance, and if it is low, the employees should be enrolled in wellbeing programs. 6.2.4 It is further recommended that all supervisors, team-leaders, and managers at all hierarchical levels be trained on Emotional Intelligence (EQ), which would enhance their overall leadership capabilities. Emotional intelligence training would equip them to become well-rounded leaders. Well-rounded leaders become more transformational. 6.2.5 It would be advisable for the banks to source the services of a consulting firm, which can conduct an employee satisfaction survey across all units and departments of the two banks. This survey should identify areas of challenges and where the significant gaps in leadership practices exist. Interventions can then be introduced to close these gaps and improve the organisational culture and performance of the banks. 6.2.5 It is recommended that the banks amend their respective recruitment and selection policies, procedures, and practices to recruit employees who display the leadership and management acumen and competencies which work “best” for the two banks. 64 6.3 Future Research Future research into the efficacy of leadership styles may take into consideration the aspects below: • Selecting respondents with increased demographic diversity and a larger sample size across various geographic areas. 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