Impact of Authoritarian Leadership on Employee Performance and Job Role Clarity. By Moderating Role of Power Distance. (In Project Line Base Company) ()
1. Introduction
Leadership is an art to motivate group of people to achieve a specific goal. Nowadays, research on leadership styles and its outcomes is a very important topic in research. Authoritarian leadership refers to hold the strong authority and control over the employees and unquestioned obedience (Chen, Song, Jia, & Wang, 2017). Leader who adopts the authoritarian leadership has control over the resources and all-important decision. Such leaders take do not like the power sharing and team base decision making (Białas, 2009). In middle East, many of companies are associated with shutdown projects. In this project line, the role of authoritarian leadership is very important. Many previous research founded the negative outcomes of authoritarian leadership on employee performance (Tian, & Sanchez, 2017). The working place where the employees have less participation in decision making process has less degree of working efficiency. The employees of certain working places are not motivated to achieve the goal because they were not part of setting the goals (Cole, Carter, & Zhang, 2013). Participation in decision making process increases the ownership of work in employees. Employees are motivated and inspired to achieve the objectives due to part of decision-making process (Aragón-Correa, García-Morales, & Cordón-Pozo, 2007). In small business and shutdown project line, where the completion of work is in specified time frame, some research finds the positive influences of authoritarian leadership on employee performance (Wang & Guan, 2018). Authoritarian leadership defined specific working pattern for completion of work and achieving the goals. It is created barriers for job role clarity and innovation in work. Employees who have different new ideas for completion of work are dis-satisfied due to lack of authority. So, in this way employees decreased the motivation with work and affect their performance in negative way (Bozionelos & Singh, 2017). The companies in which leaders want to assert all the authority are founded undesirable and in affective for employee performance and innovation (Wang, Chiang, Tsai, Lin, & Cheng, 2013). Power sharing and delegation of authority enhances the new work methods on working places. The companies which propagate the phenomena of power sharing have better performance and keep itself competition in the market (Dulebohn, Bommer, Liden, Brouer, & Ferris, 2012). Leadership styles mainly depend upon the nature of business, product, or services. The companies which are not focused on differentiation may prefer the authoritarian leadership. Such companies have defined methods, rules, problem-solving techniques. They can maintain their performance by focusing on previous experiences and old defined methods (Cheng & Wang, 2015).
Significance of Study: Authoritarian leadership and its consequences vary in different demographics and conditions. Some previous research founded the negative impacts of authoritarian leadership on employee’s performance. Some of scholars and researchers are in favor of authoritarian leadership and its association with employee performance and job role clarity. A more detailed examination of the boundary conditions may help to find the impacts of authoritarian leadership on employee performance and job role clarity. This research paper is focusing to find the “impact of authoritarian leadership on employee performance and job role clarity with moderating the role of power distance” in project line base company AYTB Oil & Gas Saudi Arabia. The era of project line specifically the companies are doing shutdowns of plants, managers of such organizations are motivating the employees by using authoritarian leadership. AYTB is one of the largest organizations in eastern region for shutdowns work in different SABIC and ARAMCO plants. This research study will investigate the consequences of authoritarian leadership on employee performance.
Research Method: A close ended structured questionnaire is used to investigate the research questions. Convenience sampling technique used for this research. SPSS is used for analysis and determine the co-relation and impression of authoritarian leadership on employee performance and job role clarity with moderating the role of power distance.
Research Findings: The findings show the positive association and impact of authoritarian leadership with employee performance in project line base company AYTB. Higher degree of authoritarian leadership has higher degree of employee performance with moderating the role of power distance. Whereas findings also explore that more degree authoritarian leadership has high degree of employee performance.
Limitation and Future Research Direction: with several notable contributions, this research paper has some limitations like demographic and limit the generalizability in cultural context, nature of working conditions and company nature of business as well.
1.1. Problem Statement
This paper finds research gape and investigates the effect of authoritarian leadership on employee performance and job role clarity by moderating the role of power distance in project line base company AYTB Saudia Arabia. In Project line, company is doing shutdown as well as turnaround projects. In Shutdown, Company has very limited time to complete the project. Therefore, the role of Authoritarian leadership is very significant in such nature of working places.
1.2. Research Objectives
Leadership is very important topic in research. Many studies find different effects of leadership styles on employee performance and job role clarity. If the there is more power isolation, then the organization has low job role clarity (Chen, Eberly, Chiang, Farh, & Cheng, 2014).
The major objectives of this research paper are listed as:
• Investigating the relationship of Authoritarian leadership with employee performance by moderating the role of power distance.
• Investigating the relationship of Authoritarian leadership with job role clarity by moderating the role of power distance.
• Investigating the impact of Authoritarian leadership on employee performance by moderating the role of power distance.
• Investigating the impact of Authoritarian leadership on job role clarity by moderating the role of power distance.
1.3. Research Questions
This research aimed to find the relationship and impact of Authoritarian leadership on employee performance and job role clarity with moderating role of power distance by addressing the following research questions:
• How Authoritarian leadership impact employee performance with moderating the role of power distance?
• How Authoritarian leadership impact job role clarity with moderating the role of power distance?
2. Literature Review
2.1. Authoritarian Leadership and Employee Performance
Authoritarian leadership leads to hold all of authority and influence the people. In central Asia, the joint family system is an ideal example of authoritarian leadership where the father carries most part of authority. In Middle East, the values are not too much different from Asian values. In these demographics, father also holds the authority and has full authority in decisions. From children hood, most people have learning of authoritarian leadership. This factor transfers from generation to generation (Dulebohn, Bommer, Liden, Brouer, & Ferris, 2012). The power centralization has productive effects on employee tasks understanding and achieving of objectives (American Automobile Association, 2007). In Middle East, most of companies are associated with Oil & Gas industry. Some studies found the negative impact of authoritarian leadership for employee performance. Authoritarian leadership is the art of compliance of power over the subordinates and assessing their performance according to defined rules. This situation does not allow the employees to adopt any new pattern of work for affectiveness (Huang, Xu, Chiu, Lam, & Farh, 2015). Authoritarian leadership is cause for more employee performance and better role understanding. The companies which have authoritarian leadership have better ability to counter the sudden problems (Schaubroeck, Shen, & Chong, 2017). After reading different research papers and books regarding authoritarian leadership, the impacts of authoritarian leadership still inconclusive which cause of more detailed and deeper study to explore the relationship of authoritarian leadership with employee performance and job role clarity. Authoritarian leadership decrease the performance of creative employees and block the new working patterns. Meanwhile, this will cause of high turnover ratio in employees (Kalsoom, Khan, & Zubair, 2018). Company pays the cost of incompetency of one person decisions (Białas, 2009). Some employees want power to execute the operations in best way. When they have lack of authority, it will have severe effect on their motivation and working performance (Cole, Carter, & Zhang, 2013). Some researchers argued that authoritarian leadership demands high performance from the employees by following pre-defined rules (Chen, Zhang, & Wang, 2014).
In this research, we will find and investigate the impacts of authoritarian leadership on employee performance and job role clarity in project line base company AYTB Oil & Gas Saudi Arabia. In this plant line, companies are doing shutdowns which have diverse nature of work activities. In these working conditions, we want to find the role and impact of authoritarian leadership on employee performance and job role clarity. We will find that either the authoritarian leadership cause of increase of performance and job role clarity in these working conditions or have some negative impacts on employee performance and job role clarity. So, the proposed hypotheses are:
H1: There is positive impact of Authoritarian leadership on employee performance.
2.2. Mediating Role of Employee Job Role Clarity
Many previous research focused to investigate the influence of authoritarian leadership on employee performance. That research wants to find the impact of authoritarian leadership on employee trust and behaviors (Chan, Huang, Snape, & Lam, 2013). Some of scholars overlooked the role of authoritarian leadership for self-construction, which influence their reactions (Wang, Cheng, & Wang, 2016). The companies which have leader-centered authority have better defined policy, rules, working methods and problem-solving techniques. These companies can respond on problem with minimum period. Employees are clear set of objectives with pre-assumed working rules (Chen, Eberly, Chiang, Farh, & Cheng, 2014). Employees are bound to follow the old methods and not able to benchmark with new working patterns due to lack of authority (Dulebohn, Bommer, Liden, Brouer, & Ferris, 2012). Sense of lack of authority leads to low motivation which affect lack of interest in work. The employees which are different demographics and past experiences are limited to obey the defined rules only. Sometime, employees are not motivated with their role due to lack of authority (https://doi.org/10.1177/0149206311415280). Employees who are working at key positions in any company looking for enough authority to perform the work. If all power hold by someone then in case of his absence, workflow badly affect (Bass, Avolio, Jung, & Berson, 2003). When the power the centralized, leader make sure specific working rules and high output standards. The firms which are working on the base of authoritarian leadership, have high expectations for employee outcomes (Gong, Wang, Huang, & Cheung, 2017).
Authoritarian leadership and its influences for employee job role clarity are different in the lens of different previous research. In this research paper, first, we purpose employee job role clarity as mediator of authoritarian leadership impact on employee performance and behavior. We also want to examine the impact of authoritarian leadership for employee job role clarity on working place. The pre-defined role or high expectations for outcomes increase the rate of performance (Rockstuhl, Dulebohn, Ang, & Shore, 2012). Leader has strong influences with all authority, but one man not specialized for all. It will negatively affect the parameters for definition of role of employees. Lack of authority leads to demotivation and as an end results low performance (Zhang & Xie, 2017). Second, employee job role clarity affects the employee approach towards work. When the employees find that there is gape between their performance and leader expectations, so that they lose the motivation and future performance (Aragón-Correa, García-Morales, & Cordón-Pozo, 2007). Leaders assist a good roadmap and patterns to solve any complex situation. Employees who are working in groups or teams, authoritarian leadership has strong influences for job role clarity of any individual employees. As a result, the performance will increase as an individual and groups (Wang & Guan, 2018). After these theoretical arguments and empirical findings, this study proposes the following hypothesis:
H2: Employee job role clarity will mediate the relationship between authoritarian leadership and employee performance.
2.3. The Moderating Role of Power Distance
Insight of different research papers, the influences of authoritarian leadership are different for employee performance. Some studied refers favorable consequences of authoritarian leadership for employee performance whereas, some of scholars found the negative implications of authoritarian leadership for employee performance and job role clarity. Employees are responded passively on the problems due to far from decision making process. This will impact their organizational citizenship behaviors (Braun, Ferreira, & Sydow, 2013). Authoritarian leadership is affective due to his support for employees. Even they want unquestioned obey but provided proper roadmap for work (Martin, Guillaume, Thomas, Lee, & Epitropaki, 2016).
The applications of authoritarian leadership are also associated with culture, custom and values. As a safer example, in Chinese culture the effect of authoritarian leadership is very productive for employee’s performance. Employees have certain gapes with the authority, but they have splendid working performance (Li & Sun, 2015). High power distance has severe affects for employees who are working at key positions, but they are not part of decision-making process. When key position employees have distances from the decision-making process so this will affect their sense of responsibility for outcomes (Bernerth, Armenakis, Feild, Giles, & Walker, 2007). Authoritarian leadership has bad effect on justice and fair career path for employees at working place. It propagated the obedience of someone individual rather than system fairness (Chan, Huang, Snape, & Lam, 2013).
This research paper aimed to investigate the impacts of authoritarian leadership for employee performance with mediating employee job role clarity and moderating the role of power distance. We want to investigate how the power distance affects the employee job role clarity and as a result employee performance. For this instance, we propose the following hypothesis:
H3: Power distance moderate the relationship between authoritarian leadership and employee job role clarity, when the power distance is higher, there is positive impact of authoritarian leadership on employee job role clarity is higher and vice versa. Furthermore, this paper also proposes that power distance moderate the indirect relationship between authoritarian leadership on employee performance through employee job role clarity. The proposed hypothetical model I illustrates this research in Figure 1.
3. Methodology
3.1. Sample and Data Collection
This paper sample is 250 supervisors and crew lead of AYTB Oil and Gas company Saudi Arabia. To avoid from bias, data is collected through questionnaire by using random sampling technique. Questionnaire is distributed in potential participants with consideration of concerned department. From respondents,
69% are male and rest of female. 41% are in age of 25 to 35 whereas, 29% are in the age domain of 35% to 45%. Rest of respondents are above the age of 45 years. The participants of this research paper are at least college education. Questionnaire attached in appendix is provided to all staff and requested to rate against every question by using Likert scale 5 (1-Strongly agree, 2-Agree 3-Nuetral 4-Disagree 5-Strongly disagree). This study is using descriptive research design by following quantitative research approach. Reference to a past research, recommended that sample size of 100 participants is enough for findings and generatability (Hair, Black, Babin, & Anderson, 2010).
3.2. Measurements
As of hypothetical model I, Authoritarian leadership is an independent variable. Whereas employee performance is taking as a dependent variable. Employee job role clarity is a mediator between authoritarian leadership and employee performance. Power distance is a moderator for authoritarian leadership which has indirect implications for employee performance through employee job role clarity. Some of past studied found that demographics variables like gender, age have some influences for employee’s performance (Schaubroeck, Shen, & Chong, 2017). Demographics variables have positive influences with employee performance (Martin, Guillaume, Thomas, Lee, & Epitropaki, 2016). Gender was coded “0” for female, whereas “1” for male. Age was measured in number of years and the value of Cronbach’s alpha was 0.86. So, for this research paper, we are controlled for gender and age in our study.
3.2.1. Authoritarian Leadership
For this research study, Authoritarian leadership is measured by nine-item scale developed by (Cheng, Chou, Wu, Huang, & Farh, 2004). The sample items for authoritarian leadership were. “My manager determines all the decisions in the organization weather they are important or not”. The value of Cronbach’s alpha was 0.83. The value of Cronbach’s alpha for this research is 0.79.
3.2.2. Employee Job Role Clarity
Employee job role clarity is measured by fifteen items scale developed by (Pareek, 2002) and validated latest with four items by (Yadav & Rangnekar, 2013). The sample items for employee job role clarity were “what your seniors expect from you”. The value of Cronbach’s alpha was 0.88. The value of Cronbach’s alpha for this study is 0.82.
3.2.3. Power Distance
This research measured power distance by using seven items questionnaire developed by (Earley & Erez, 1997) and latest validated by (Wei, Sun, Liu, Zhou, & Xue, 2017). The sample items for power distance were “in work-related matters, managers have a right to expect obedience from their subordinates”. The value of Cronbach’s alpha was 0.71 and value for this paper is 0.79.
3.2.4. Employee Performance
Employee performance is measured by the five items developed by (Heilman et al., 1992) and validated with latest (Wang & Guan, 2018). The sample items were “this employee gets his or her work done very affectively”. The Cronbach’s alpha coefficient for employee performance was 0.86 and for current study is 0.83.
3.3. Results
3.3.1. Validation & Correlation
By using Mplus 7, this research study conducted the confirmatory factor analysis to test the distinctiveness of all variables like authoritarian leadership, employee job role clarity, power distance and employee performance.
Table 1 shows the findings after analysis and indicates that the hypotheses for four factor model are fit with data as well. The values X2 (df = 303) = 542.18. The value of root means square error of approximation (RMSEA) = 0.05. Value of root mean square residual is 0.07. The degree of comparative fit index for this study is 0.89. By using this base model, we tested three alternative models for the same. We used a three-factor model, and this is combining the authoritarian leadership, employee job role clarity into single factor. As another alternative, we used two factor model which combined the authoritarian leadership, employee job role clarity and power distance into one factor. The last alternative which tested by this research paper is a single factor model which combined all four variables into one factor. The findings in Table 1 show that the base model has significantly fit with data as compared to the alternative models. That is way, this research paper used four factor model for investigating the research objectives. Furthermore, we applied common method variance with CFA model. In order to process, all items are loaded with its respective factors and common method factor (Martin, Guillaume, Thomas, Lee, & Epitropaki, 2016).
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Table 1. Confirmatory factor analysis of the variables.
Table 2 present the correlation statistics between the variables. Results show that authoritarian leadership is positively associated with employee job role clarity (r = 0.16**, p < 0.01), Power distance (r = 0.42**, p < 0.01) and Employee performance (r = 0.21**, p < 0.01). Furthermore, the results also indicate the positive relationship of employee job role clarity and employee performance (r = 0.39**, p < 0.01).
Table 3 is presenting the reliability statistics of variables. Authoritarian leadership is measured by 9 items with Cronbach’s Alpha value 0.79. Job role clarity is also measured 4 items and has alpha value of 0.82. Power distance is measured by 7 items and value of alpha is 0.71, whereas employee performance is measured by 5 items with alpha value of 0.83.
3.3.2. Testing of Hypotheses
To find the research questions and test the main and mediation impacts, this research paper used path analysis model conducted in Mplus 7. This is used to measure both coefficients and indirect effects. For this research study in project line, gender and age variables are controlled.
Figure 2 presents the results and show the positive relationship between authoritarian leadership and employee job role clarity (B = 0.015, SE = 0.06, p < 0.05) and employee performance (B = 0.018, SE = 0.06, p < 0.05). Findings show that there is also significant positive relationship between the employee job role clarity and employee performance (B = 0.00028, SE = 0.08, p < 0.05).
As of research objectives and questions, testing of hypotheses and findings support the hypotheses 1 and 2. To find the moderating effect of power distance
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Table 2. Mean, standard deviations, and correlations among the variables.
N = 250; *p < 0.05, **p < 0.01.
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Figure 2. Model results. *p < 0.05, **p < 0.01, ***p < 0.01.
for the relationship of authoritarian leadership and employee job role clarity. This research paper developed a model for the testing of hypotheses 3. To examine the relationship and affects, we draw an interaction term for of authoritarian leadership and power distance into the model employee job role clarity. The results show the interaction is significant (B = 0.015, SE = 0.07, p < 0.05).
Figure 3 presents to find the impact and moderating role of power distance and testing of our third hypotheses in project line. Results show that with high degree of power distance, positive affect of authoritarian leadership for employee’s job role clarity. In other words, with higher individual power distance, the positive affect of authoritarian leadership on employee job role clarity is significant (B = 0.96, t = 2.39, p < 0.05). As decrease in individual power distance, Figure 3 reveals the results and the positive affect of authoritarian leadership on employee job role clarity is weaker ((B = 0.54, t = 2.51, p < 0.05).
Furthermore, this paper also investigates the moderated role of power distance as indirect impact of authoritarian leadership on employee performance through employee job role clarity. The results revealed the affect that with higher power distance, the indirect affect is significant (indirect affect = 0.07, SE = 0.03, 95% CI = [0.02, 0.15] excluding zero). In other hand, the indirect affect was not significant with lower degree of individual power distance (indirect affect = 0.01, SE = 0.03, 95% CI = [−0.02, 0.11] excluding zero). Thus, the results are consistent with hypotheses 3 in project line.
3.3.3. Descriptive Statistics and Multiple Regression
Table 4 is showing the multi regression analysis results. The value of F test is F = 17.373 which is representing that overall regression is significant. The value of R2 = 0.0594 which shows that model for regression is fit. The value of t = 6.134 that is showing that independent variables have significant impact on dependent variable. For multicollinearity, the value of VIF is less than 10 for independent variable which clear the fact that it is complex to measure the impact of each independent variable on dependent variable separately. Keep the factor into account that independent variable authoritarian leadership taking as “Y” and all dependent variables like job role clarity, power distance and employee performance as “X”.
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Figure 3. Interaction between authoritarian leadership and power distance on employee job role clarity.
Note: The Dependent variable is Employee performance whereas R2 = 0.0594, F = 17.373, Sig. = (0.000).
After analysis, refer to Table 4, variable “Y” has a significant positive impact on variable “X”. The value of t = 4.891 at level of significance (0.00) is showing the significant positive impact of “Y” on “X”. The multi factor regression analysis findings also confirm the findings presented in Table 2 as well.
3.4. Discussion on Results
The primary goal of this research paper is to investigate the impacts of authoritarian leadership on employee performance and job role clarity by moderating the role of power distance. In middle east specially in Saudia Arabia, several companies are doing shutdowns and short-term projects with big clients like ARAMCO, SADRA and SATROP etc. In these working requirements, this research study wants to investigate the influences of authoritarian leadership on employee performance and job role clarity by moderating the role of power distance. After analysis, this research paper confirms the significant positive impact of variable “Y” on variable “X”. In project line, where companies are doing shutdowns and off and a specific are of plants. Companies are bound to perform and complete the work according to specific period otherwise, its affect all operations of overall plants. The role authoritarian leadership is very significant in such type of working conditions and requirements. Our results are consistent with some previous studies which showed the positive impact of authoritarian leadership on working place (Chen, Song, Jia, & Wang, 2017). This research paper controlled the demographics variable and had coherent findings with (Li & Sun, 2015). But as a fact in research, some of scholars and papers also found the negative influences of authoritarian leadership for employee performance and motivation (Gong, Wang, Huang, & Cheung, 2017). The fact of power sharing is very important at working place for employee satisfaction. If authority is centralized, then it will impact the employee satisfaction in negative way (Chen, Zhang, & Wang, 2014). Employee are outperforming when they have specific set of assigned responsibilities. In complex nature work, the role of authoritarian leadership is positively significant for employee performance (Chen, Eberly, Chiang, Farh, & Cheng, 2014).
4. Conclusion
4.1. Conclusion
This research paper substantiates the positive impact of authoritarian leadership on employee performance and job role clarity by moderating the role of power distance in project line base company AYTB Oil & Gas industry Saudi Arabia. Based upon findings, current research work found the positive association of authoritarian leadership with employee performance and employee job role clarity. This paper also confirms that with higher individual power distance, authoritarian leadership has a significant positive impact on employee job role clarity. As a moderating role of power distance and indirect impact, this research authenticates that with higher individual power distance, authoritarian leadership has a significant impact on employee performance through employee job role clarity.
4.2. Theoretical & Managerial Implications
In research on leadership styles, authoritarian leadership is founded as detrimental leadership behavior. Many of scholars and research emphasized the negative consequences of authoritarian leadership on employee satisfaction and performance (Chan, Huang, Snape, & Lam, 2013). But some of previous and recent studies also found the positive influences of authoritarian leadership on employee performance and satisfaction. According to the results of those studies, authoritarian leadership is a productive leadership behavior with fruitful outcomes (Huang, Xu, Chiu, Lam, & Farh, 2015).
The current research paper wants to address the lack of consensus about the impacts of authoritarian leadership for employee performance. After testing the hypotheses, these research paper findings are also consistent with the scholars and research who founded the positive impact of authoritarian leadership for employee performance. Findings after testing the 2nd hypotheses also provide the clear picture of authoritarian leadership for employee performance by mediating the role of employee job role clarity. This paper also finds the positive impact of authoritarian leadership for employee job role clarity. Employee’s roles are clear and concise when the organization is practicing the authoritarian leadership. These findings are also coherent with some previous research (Cheng & Wang, 2015).
This paper extended its scope of research to power distance. This paper also finds how power distance directly and indirectly affects the relationship of authoritarian leadership for employee job role clarity and employee performance. After testing the 3rd hypotheses and based on results, the current research study argued that with high individual power distance, there is more degree of employee job role clarity and better performance. Yes, these findings are not consistent with many previous studies like (Chen, Zhang, & Wang, 2014). But some research findings are also same results as this paper (Chen, Eberly, Chiang, Farh, & Cheng, 2014). Thus, our research paper reflects the results in favor of authoritarian leadership for employee performance and has several managerial implications. Leaders can focus on disciple and rule which may help to satisfy the employee and improve their performance. With subject of authoritarian leadership, leader can focus to rule by role. This is very important in project line. On the basics of findings, leaders should keep distance during the selection and after process. This paper finds positive influences of authoritarian leadership for employee performance with high individual power distance.
4.3. Limitations & Future Research Directions
Despite of some measurable contributions, this research paper has several limitations as well. First, this research is done in Saudi Arabia and the generalizability is limited across the globe due to diverse cultural context. The impact authoritarian leadership on employee performance varies in different geographic locations (Gong, Wang, Huang, & Cheung, 2017). This is a valuable addition for other scholars to investigate same subject at different other location. Second, the focus of this research paper is only for project line. The nature and scope of working conditions are specified. The results vary in normal operations of companies and structure nature of work (Tian & Sanchez, 2017). Scholars can verify the results in normal operations and structured nature work in future. Third, this research used cross-sectional design with individual measurement and role of variables as well. Future research can use longitudinal design and reduce possible influences of CMV. Forth, this paper took demographics as a control variable. The results may vary by including demographics as a variable (Wang, Cheng, & Wang, 2016). There is a way for scholars to examine the impact of authoritarian leadership on employee performance by including the demographics variables.
Appendix: Questionnaire for Research