Holland, Simon C.2010-07-061998https://hdl.handle.net/10182/2194Research indicates that following the Vroom-Yetton (1973) Normative Model of Leadership reliably predicts successful managerial decision-making. However, this model overlooks the basic leadership style of the decision maker. This omission is seen as a possible reason why the Vroom-Yetton model has not been strongly supported in studies using subordinate self-reports, particularly in situations in which autocratic behaviour is prescribed. Recent investigations into Bass' (1985) leadership theory have found the effects of transformational leadership augment the impact of transactional leadership on subordinates' perceptions of managerial effectiveness and performance. To see if a manager's basic leadership style (i.e., transformational or transactional) moderates subordinate perceptions of decision effectiveness, a laboratory experiment involving 258 university commerce students was conducted. Leadership style was manipulated, along with the manager's "correct" or "incorrect" decision behaviour in terms of the Vroom-Yetton normative model. Results indicated that managers profiled as transformational leaders who behaved consistently with the Vroom-Yetton model when autocratic decision-making was prescribed, received ,significantly higher ratings on decision effectiveness and satisfaction criteria by subjects placed in the role of subordinates, than managers in the transactional or control (no leadership profile provided) conditions. In addition, managers profiled as transformational leaders were rated significantly higher than those in the transactional and control conditions, even when they engaged in autocratic behaviour when the Vroom-Yetton model called for a group approach to decision making. These findings suggest that leadership style does moderate subordinates' perceptions of decision effectiveness and a manager's effective application of the Vroom-Yetton model. Implications of these findings for both theory and practice are discussed, and directions for future research are identified.entransformational leadershipdecision effectivenesssubordinate participation in decision-making (PDM)Vroom-Yetton modeltransactional leadershipleadershipdecision makingThesisDigital thesis can be viewed by current staff and students of Lincoln University only. If you are the author of this item, please contact us if you wish to discuss making the full text publicly available.Q112852038