The relationship between leadership and group performance : a study in a transforming organisation

Abstract

What are the processes that leaders who display transformational and transactional leadership use to enhance group performance during a time of organisational change? To examine this question, this study investigates the relationship between transformational-transactional leadership and group performance as well as examining the mediating role of group cohesiveness on the leadership-performance relationships. Data were collected from 70 audit groups of a large government agency, which was facing change, in Thailand.

Results show that components of transformational leadership (i.e., idealised influence, inspirational motivation, intellectual stimulation, and individualised consideration) and active transactional leadership (i.e., contingent reward, and active management-by-exception) had a direct and positive relationship with subordinate rated group performance. Group cohesiveness had no effects on the leadership-group performance relationships.

Additionally, transformational leadership was found to have augmentation effects on transactional leadership in the prediction of group performance. Unfortunately, no significant relationships between leadership and group performance were found when the group performance was assessed using objective measures. Implications, limitations of this study and future leadership research avenues are discussed.