Leadership behaviours as predictors of cost and change effectiveness

Jouko Arvonen and Pär Pettersson

Scandinavian Journal of Management, 2002, vol. 18, issue 1, 101-112

Abstract: In this study it is assumed that different leadership behaviours affect organisational outcomes in different ways. Leadership has been measured using the CPE model, which embraces three types of leadership centring on change production and employees, respectively. Scales were constructed to measure effectiveness with respect to change and cost. The study was carried out in an international Swedish industrial company. A total of 49 departments were included representing 363 respondents. The data were collected at the individual level. However, all the data were aggregated and analysed at the organisational level. The main results are twofold. First, relation-orientated management is significantly related to both outcomes. Second, there are various combinations of behaviours for specific outcomes. The regression analyses revealed that the best combination for cost effectiveness consists of behaviour orientated towards relations and production. The best combination for effectiveness in dealing with change is an orientation towards relations and change behaviour. These two combinations explain about 30% of the variance in the respective criteria of effectiveness.

Keywords: Leadership; Transformational; Management; Behaviour; CPE-model; Effectiveness (search for similar items in EconPapers)
Date: 2002
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