Professional Documents
Culture Documents
leadership in retailing
Hilary Duckett
Oxford Brookes University, Oxford, UK
Elspeth Macfarlane
Oxford Brookes University, Oxford, UK
[ 309 ]
Hilary Duckett and characterised by greater levels of follower . . . [a] relationship of mutual stimulation and
Elspeth Macfarlane participation in decision making. The elevation that converts followers into leaders
Emotional intelligence and (Burns, 1978, p. 4).
transformational leadership in contingency theory was developed from the
retailing work of Fiedler (1967), Vroom and Yetton
Thus transforming leadership is relational
Leadership & Organization (1973), and House and Dessler (1974). The
Development Journal and reciprocal. Burns (1978) contrasted this
contingency theorists concluded that the
24/6 [2003] 309-317 with transactional leadership involving a
leadership construct was complex and
extended beyond simply the behaviour of the basic exchange of organisational resources
leader. Equally influential was the and rewards for action and performance.
situational or contextual setting. This Burns (1978) suggested that transactional
leadership paradigm focused on the leaders' leadership is limited in scope because
ability to adapt their behaviour to the resources are scarce and power is contested
specific needs of individuals or the context. and dispersed thus leader discretion is
It recognised that leadership is a relational restricted.
process involving interaction with a range Bass (1990) developed the work of Burns
of stakeholders and structures. (1978) into a model of transformational and
Contemporary leadership writing has transactional leadership. Both categories
focused increasingly on this individualised have a range of behaviours associated with
and adaptable relationship between the them that are depicted in Table I.
leader and follower and the importance of Bass (1990) proposed a hypothesis
the needs (social, psychological, extrinsic) of that transformational leaders were more
followers as a constituency. Bass (1985) likely to be seen as satisfying and effective
identified this transition within the and tested this using the multifactor
leadership questionnaire across a range of
literature from the classical tradition of
sectors public, private, health and defence.
perceiving leaders as achieving tasks by
He also correlated the results against
controlling and directing human behaviour
independent measures of productivity and
towards a model that recognises the
financial performance. His findings
centrality of fostering a positive
suggested that:
relationship with followers. Leadership
. . . transformational leaders have better
as a relational process involves interaction relationships with their supervisors and
with a range of stakeholders and structures make more of a contribution to the
and will: organisation than do those who are only
. . . involve leaders, followers, members, and transactional (Bass, 1990, p. 631).
subordinates or constituents as they interact,
create visions, become inspired, find meaning In addition he found employees were willing
in their work and lives, and gain trust and to exert more effort and to increase standards
respect (Clark and Clark, 1992, p. 2). for transformational leaders. A focus on
individualised consideration meant that in
general transformational leadership resulted
Transformational leadership in more risk taking and higher levels of
entrepreneurial activity. In conclusion Bass
The terms transforming, transformational
(1990) suggested that:
and transactional (Burns, 1978; Bass, 1990)
. . . when a firm is faced with a turbulent
have become central to the study of
market-place . . . then transformational
leadership and are often used to differentiate leadership needs to be fostered at all levels in
leadership and management. The theory of the firm (Bass, 1990, p. 639).
transforming leadership was first developed
Bass's (1990) findings are supported by recent
by Burns (1978) in order to differentiate those
research by Krishnan (2001) who suggests
leaders that established meaningful and
that superior performance is possible only
motivating relationships with subordinates
through stimulating and motivating
and followers from those that relied
followers to higher levels of performance
extensively on exchange or transaction to
through transformational leadership. His
generate results. Burns (1978) identified that
study found that the values of
a transforming leader: transformational leaders and transactional
. . . looks for potential motives in followers,
leaders are different ± the former
seeks to satisfy higher needs, and engages the
characterised by a focus on collective welfare
full person of the follower (Burns, 1978, p. 4).
and equality, change orientated and moral
He proposed that transforming leaders values and the latter oriented to the routine
developed: and competence values.
[ 310 ]
Hilary Duckett and Table I
Elspeth Macfarlane Transformational and transactional leadership
Emotional intelligence and
transformational leadership in Transformational leadership Transactional leadership
retailing
Leadership & Organization Charisma: provides vision and sense of mission, instills Contingent reward: contracts exchange of rewards for
Development Journal pride, gains respect and trust efforts, promises rewards for good performance,
24/6 [2003] 309-317 recognises accomplishments
Inspiration: communicates high expectations, uses Management by exception (active): watches and
symbols to focus efforts, expresses important searches for deviations from rules and standards,
purposes in simple ways takes corrective action
Intellectual stimulation: promotes intelligence, Management by exception (passive): intervenes only if
rationality and careful problem solving standards are not met
Individualised consideration: gives personal attention, Laissez-faire: abdicates responsibilities, avoids making
treats each employee individually, coaches and decisions
advises
Source: Bass (1990, p. 630)
[ 311 ]
Hilary Duckett and mind, and an endless supply of smart ideas, products. The selection criteria that were
Elspeth Macfarlane but still will not make a good leader applied thus reflected transformational
Emotional intelligence and (Goleman, 1998, p. 92). rather than transactional qualities and this
transformational leadership in
retailing did present difficulties as they grew from an
A person with high emotional intelligence has abstract concept to an operational business.
Leadership & Organization
Development Journal the ability to understand themselves and The incongruence between the human
24/6 [2003] 309-317 others and to adapt behaviours to a given resource interventions and the
context. Individuals with a high EQ and thus organisational requirements is discussed
demonstrable personal and social competence more fully.
may be oriented towards a transformational The preliminary research focuses on
leadership style with an emphasis on measuring performance of store managers
motivating and influencing others. Some through the summation of three different
measures. First, annual appraisal scores
research suggests that an organisation that is
derived from pre-determined criteria;
characterised by EQ has increased employee
second, sales to target figures; and third,
co-operation, motivation, and productivity ranking by head office directors. As a
and increased profits (an association also separate research exercise the EQ profiles of
reflected in transformational leadership the store managers were collected to
literature (Bass, 1990)). ascertain the relationship between EQ and
performance. The tool used to determine the
EQ profiles was the SMS-EQ Profile (widely
Methodology used in the USA). All 20 store managers were
approached for inclusion in the study but
The results of an empirical study into the EQ statistically reliable data was finally
profiles of a group of retail managers is collected from 13.
presented. The research explores the
relationship between EQ and
transformational leadership and considers The SMS-EQ profile
the applicability of transformational and EQ
The SMS-EQ profile is a quantitative tool
profiles as evaluative criteria. For the
designed to produce an EQ profile. The tool
purposes of this research the following
has been in use since 1970 and normed
hypotheses are tested:
extensively in the USA. The test can be used:
H1. EQ profiles can be mapped against the
as a diagnostic tool to examine the profiles of
transformational leader profiles.
H2. If there is a relationship between the existing managers; to identify an ``ideal''
variables then the ideal manager profile for recruitment and selection
profile at Company X would have high purposes; or to determine the content of
EQ and transformational leadership management development programmes. The
qualities. profile measures 13 dimensions which
combine transactional and transformational
The case study was centred on a small
retailing organisation operating from 21 leadership qualities. The purpose of this
stores in the UK. The company was study was to determine if a relationship
established in the UK in 1988 and reached existed between high EQ and high levels of
profitability in 1996 ± within 12 years it had performance. These dimensions are
generated a turnover of £25m. Company X paralleled in other constructs (Goleman,
expanded rapidly over this period from 2 1998; Dulewicz and Higgs, 1999; Salovey and
stores to 21. At the time of testing the Mayer, 1990). A description of each of the
company employed 470 staff in a variety of dimensions is presented in Table II. In
different capacities including head office, addition the dimensions have been mapped
administration and store employees. At its against the earlier theoretical model of
conception the organisation chose to
transformational/transactional leadership
inculcate a culture that was fluid , flexible
from Table I. The mapping process
and not constrained by too many rules and
demonstrates the connections between EQ
procedures. The philosophy of the founders
was to create a non-threatening environment dimensions and the dual leadership
that would promote risk-taking and descriptors for transformational/
entrepreneurial activity at all levels of the transactional.
business. The initial selection criteria The SMS-EQ survey is administered in two
reflected this emphasising strong parts: in part one the respondent checks a list
inter-personal skills and an affinity with the of 360 adjectives and selects those which
organisational culture and a love of the he/she believes to be accurate external
[ 312 ]
Hilary Duckett and Table II
Elspeth Macfarlane The 13 dimensions used in the profile tool
Emotional intelligence and
transformational leadership in Transformational/transactional
retailing
SMS-EQ dimension Description leadership
Leadership & Organization
Development Journal Energy Emotional energy is the energy a person Transformational ± inspiration/energy
24/6 [2003] 309-317 has to cope with stress, conflict, frustration
and pressure
Stress Emotional stress is the degree to which a Transformational ± inspiration
person is troubled by uncomfortable
feelings
Optimism To what degree an individual sees the world Transformational ± charisma/
in a positive or negative light inspiration
Self esteem The tendency to value oneself and be Transformational ± individualized
self accepting consideration
Commitment to work Commitment to work is the tendency to Transformational ± inspiration/
work hard, to get things done, and to take intellectual stimulation
responsibility Transactional ± management by
exception (active)
Attention to details Attention to detail measures to what Transactional ± management by
degree a person pays careful attention to exception (active)
what he/she is doing, and to what degree a
person strives for precision in tasks
Change Desire to change measures to what degree Transformational ± charisma/
people like to change in their environment, intellectual stimulation/inspiration
in what they believe or in their behaviour
Courage Courage is the willingness to risk injury, Transformational ± inspiration/
loss, hardship or physical discomfort to charisma
reach a desired goal
Direction (transformational/ Self direction is the tendency to form Transformational ± inspiration,
transactional) opinions, set goals, and make decisions charisma
Transactional ± management by
exception (active)/contingent reward
Assertiveness Assertiveness measures to what degree a Transformational ± inspiration
person tries to motivate others to believe or
do something
Tolerance Tolerance is the degree to which a person Transformational ± individualized
is patient or willing to put up with consideration
inconvenience from others
Consideration Consideration for others is how Transformational ± individualized
understandable, thoughtful, helpful, honest consideration
and responsible the person is
Sociability This is the tendency to meet people, spend Transformational ± individualized
time talking and be group orientated consideration
Table III
Differences between actual average and idealised EQ scores
Difference between actual
SMS-EQ dimension Average EQ profile Ideal EQ profile average and ideal scores
Energy 6.2 high 7 high ±0.8
Stress 4 moderate 4 moderate =
Optimism 4.3 moderate 5 moderate ±0.7
Self esteem 5.8 high 5 moderate +0.8
Work 3.9 moderate 7 high ±3.1
Detail 3.2 low 5.5 high ±2.3
Change 7.3 high 7 high ±0.3
Courage 5.7 high 5.5 high +0.2
Direction 5 moderate 7 high ±2
Assertive 5.7 high 6 high ±0.3
Tolerance 5.1 moderate 6 high ±0.9
Considerate 3.6 low 6 high ±2.4
Sociable 6.2 high 7 high ±0.8
Note: Those scores of +/±2 for commitment to work, attention to detail, direction and consideration are shown
in bold
[ 314 ]
Hilary Duckett and Figure 1
Elspeth Macfarlane Differences between average and idealised EQ profiles
Emotional intelligence and
transformational leadership in
retailing
Leadership & Organization
Development Journal
24/6 [2003] 309-317
organisational task requirements and the requirements of the task are not fully
manager's competence. This performance matched by the competencies of the
gap is discussed more fully below. managers.
This performance gap was reinforced by
the organisational culture at Company X.
Discussion Much effort had been expended on
The results of this study demonstrate a establishing an open, positive culture that
relationship between success, EQ and valued sharing and trust. This cultural mix
transformational leadership in a retail reinforced the transformational leadership
management context thus confirming orientation with its focus on collective
previous research (Bass, 1990). Table II maps welfare and equality (Burns, 1978; Bass,
the relationship between transformational 1990) and the relational aspects of leading
and EQ leadership profiles and demonstrates and managing (Clark and Clark, 1992). The
a high level of commonality. Through human organisation had established a culture that
resource interventions such as selection and was averse to rules and regulations and
succession planning, Company X had created a non-threatening environment that
established criteria that emphasised encouraged the selection of creative, risk-
transformational and high EQ leaders. taking and entrepreneurial leaders (Bass,
However, the idealised manager profiles 1990) needed during the radical change
(shown in Figure 1) indicated that measures (``start-up'') phase of the business
of success for store managers at Company X (Eisenbach et al., 1999). The culture was
also included transactional leader further reinforced through a range of
characteristics (commitment to work, human resource interventions such as
attention to detail and direction). Much recruitment, review and progression
research (Burns, 1978; Bass, 1990; Eisenbach decisions. Such tacit and explicit
et al., 1999; Krishnan, 2001) illustrates the interventions (Peters and Waterman, 1982;
value of transformational styles for Handy, 1985; Burns, 1978; Eisenbach et al.,
organisational development and follower 1999) resulted in a predisposition to
satisfaction, however, this study has also transformational leadership orientations
demonstrated that for the retail managers at and diminished the value of transactional
Company X there was also a requirement to competencies. As a consequence managers
exhibit transactional characteristics. The did not possess the transactional (Bass, 1990)
discrepancy shown in Figure 1 between the competencies (analytical ability;
actual and idealised manager profiles results assertiveness; ability to delegate; and
in a performance gap whereby the resilience) nor did they match the EQ
[ 315 ]
Hilary Duckett and descriptors attention to detail and work Retrospective interventions used as a
Elspeth Macfarlane commitment. These dimensions were all corrective measure are costly.
Emotional intelligence and
transformational leadership in areas of weakness for this cohort of Had the organisation used the SMS-EQ
retailing managers and resulted in a performance gap profile as a selection tool the resultant
Leadership & Organization and a cohort of managers who were partly criteria would have reflected transactional
Development Journal and transformational competencies and
24/6 [2003] 309-317 but not wholly successful.
the performance gap could have been
To an extent the directors at Company X
avoided.
had acknowledged a performance gap
and had attempted to redress this References
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developing people through delegation'', in
Goleman, D. (1990), Emotional Intelligence ±
Bass, B.M. and Avolio, B.J. (Eds), Improving Why it can Matter More than IQ, Bloomsbury,
Organizational Effectiveness through London.
Transformational Leadership, Sage Goleman, D. (2000), ``Leadership that gets results'',
Publications, Thousand Oaks, CA, Ch. 2, Harvard Business Review, March/April.
pp. 10-25. Sarros, J.C. and Santora, J.C. (2001), ``The
Peters, T.J. and Waterman, R.H. (1982), In Search transformational-transactional leadership
of Excellence; Lessons from America's model in practice'', Leadership &
Best Run Companies, Harper and Row, Organization Development Journal, Vol. 22
New York, NY. No. 8, pp. 383-93.
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