Effects of Leadership Style on Folksam International Insurance Co Ltd in Sweden

This survey examines the effect of leadership styles on insurance companies in Sweden, focusing on Folksam International Insurance Co Ltd. The study analyzes the performance effect of autocratic, democratic, and laissez-faire leadership. Findings reveal a positive significance between democratic and transformational leadership and company performance, as well as a negative relationship between autocratic leadership and performance. The research provides valuable insights for creating organizational policy guidance and enhancing productivity.

EFFECTS OF LEADERSHIP STYLE ON FOLKSAM INTERNATIONAL
INSURANCE CO LTD IN SWEDEN
Background & motivation
The aim of this survey was to investigate the effect of leadership styles on insurance companies
in Sweden. The core objective was to determine performance effect on transformation leadership
of Folksam international insurance Co ltd (Shields, 2009). To analyze, assess and establish the
performance effect of autocratic leadership, democratic leadership and Laisez faire leadership in
Folksam international insurance Co ltd.
The study was essential since it acts as source model for creating organization policy guidance.
This provides necessary leadership motivation for enhancing productivity in any company.
The key survey design method utilized was descriptive research method (Salaria, 2012). The
sampling method adopted while conducting this survey was stratified technique. (Cheng and Lai,
2009) The survey applied both interview and questionnaire directives to collect the data. The
data that was collected was organized and analyzed using statistical parameters that included
descriptive statistical tool. This helped generating, the mode, mean, median standard deviation
and variance. The qualitative analysis was done by grouping and categorizing the responses. The
correlation method was used to determine the strength of the variables associations. In addition
the regression analysis method was used to determine the variable relationship. The research
established the existence of a positive significance relationship between democratic leadership,
transformation leadership and the company performances. The research also determined that
their existed a negative relationship and significance between autocratic leadership and the
insurance company performance. In addition, the study found out that increase in permissive
leadership had a direct positive significance on the insurance company performance. The
research concluded that there was positively significant relationship between the insurance
company performance and the transformative leadership. Furthermore, there were negative and
weak correlation between the insurance company and autocratic leadership (Einarsen, Hoel and
Notelaers, 2009).
Democratic leadership was adopted by the insurance company when the employees were
incorporated in making decision, consultations of complex issues, building management and
encourages feedback from employees. The increased permissible leadership had a positive
significance performance in the Folksam international insurance Co ltd. Though there were weak
positive relationship on this style of leadership and the performance of the insurance company.
Population
A total of 300 respondents were distributed questionnaires using convenient sampling method.
The respondents included directing manager, departmental heads and other staffs in Folksam
international insurance Co ltd.
Population Number of respondents

Directing managers 20
Head of departments 83
Other Staffs 197
Total 300
Selection
The method selected to analyze the data was reliability test using Cronbach’s alpha. The reason
to apply for this sampling method was because the method was easy, affordable and readily
available (Etikan, et al., 2016). A 10% sample size data was used to project and analyze the
whole outcome.
Contents
To examine the performance effect on transformation leadership in Folksam international
insurance Co ltd
To determine performance effect of autocratic leadership style in Folksam international
insurance Co ltd
To assess performance effect of democratic leadership style in Folksam international insurance
Co ltd
To assess performance effect of permissive leadership style in Folksam international insurance
Co ltd
Operationalization
Objectives Variables Indicators Scale of
measurement
Data analysis
To examine the
performance
effect on
transformation
leadership in
Folksam
international
insurance Co
ltd
Transformative
leadership
 Set goals
 Making positive
decisions
 Raise awareness
Ordinal Descriptive
statistics
methods
To determine
performance
effect of
autocratic
leadership style
in Folksam
Autocratic
leadership
 Competence
 Improve
performance
goals
 Tight budget
Ordinal Descriptive
statistics
methods

international
insurance Co
ltd
To assess
performance
effect of
democratic
leadership style
in Folksam
international
insurance Co
ltd
Democratic
leadership
 Quick decision
making
 Involvement in
decision making
 Consultations
Ordinal Descriptive
statistics
methods
To assess
performance
effect of
permissive
leadership style
in Folksam
international
insurance Co
ltd
Permissive
leadership
 Group decision
 Freedom
Ordinal Descriptive
statistics
methods
Analysis
Reliability of instrument used.
The term reliability is also known as consistency of sample data that are generated from a given
research method. This term can also be phrased as a measure of degree in which the applied
instrument will yield similar results after several repeated trials. The applied reliability method
used was split – half where a single instrument of research was split into two and each part
distributed to a one respondent group at the same period of time. The instrument reliability was
estimated by using coefficient of Cronbach’s alpha.
The Cronbach’s alpha criteria for consistency reliability included: Excellent (alpha > 0.9), Good
(0.7 < alpha < 0.9) and worst (0.5 < alpha < 0.7).
The reliability method applied was tested using 10 respondents’ questionnaires. This was
equivalent to 10% of the sample size. From the results shown on the table below, the
transformative leadership coefficient was 0.814, the Autocratic leadership coefficient was 0.823,
while the democratic leadership coefficient was 0.842 and the permissive leadership coefficient
was 0.872 (Spiliotopoulou, 2009).
Variables Cronbach’s alpha Number of items
Transformative leadership 0.814 5
Democratic leadership 0.842 5
Autocratic leadership 0.823 5

Permissive leadership 0.872 5
Therefore, the highest reliability variable was permissive leadership which had Cronbach’s alpha
of 0.872; this meant that this method was highly reliable to be applied. Whereas the least reliable
variable was transformative leadership with Cronbach’s alpha of 0.814
Regression analysis
The research established the effect of leadership style on Folksam international insurance Co ltd
in Sweden.
The regression model generated was as follows
Model R – value R – square value Adjusted squared
value
Standard error
estimate
1 0.79 0.62 0.60 0.03
The model R – square was 0.62 this indicated that there existed a correlation between insurance
performance and the leadership style applied which led to 62% change in Folksam international
insurance Co ltd. The adjusted R – square indicated the variation between the leadership style
and performance of the insurance company. The research established the existence of positive
significance variation between the leadership style and performance of Folksam international
insurance Co ltd as R = 0.62.

QUESTIONNAIRRE FOR FOLKSAM INTERNATIONAL INSURANCE Co ltd
EMPLOYEES
The objective of this questionnaire is to gather information and data that will be used by the
academic researcher. You are kindly requested to participate on this survey, to positively help in
providing essential information that will be required to complete this academic research. Your
name will not be required. You are requested to provide useful and correct data and fill in
appropriately as guided. The responses will either be ticked (√) or written in the spaces provided.
SECTION 1: BACKGROUND AND MOTIVATION
1. indicate your gender
[ ] Female [ ] Male
2. Education level
[ ] Primary level [ ] Secondary level [ ] diploma level [ ] University degree level [
] post graduate level
3. Please tick on your age bracket
[ ] 18 – 25 years [ ] 26 – 33 years [ ] 34 – 41 year [ ] over 41 years
4. Specify your highest education level attained?
[ ] Primary level [ ] Secondary level [ ] diploma level [ ] Degree level [ ] Mater
level
5. What is your position in the organization?
[ ] CEO [ ] Company manager [ ] program officer [ ] other positions
6. How long have you worked in the company
[ ] Less than one year [ ] between 1 to 3 years [ ] between 4 to 6 years [ ] more than six
years
SECTION 2: LEADERSHIP TRANSFORMATION
7. Does leadership transformation help in insurance company performance?
[ ] Yes No [ ]
Explain your response :
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
……….
8. Indicate by ticking the degree to which the following leadership transformation affects
the insurance company performance. The scale to be used where 1 – Very low extent, 2 –
Low extent, 3 – moderate extent, 4- great extent and 5 – Very great extent

Aspects 1 2 3 4 5
Directing manager can be approached by all employees
Directing manager/ supervisors allows delegation of duties
The staffs are in a position to dialogue with the supervisors on
complex issues
Directing manager encourages all the departmental head and
subordinate employees to work in innovative and creative ways
Directing managers encourages staff management
Directing managers consults with other employees in making
company decisions
SECTION 3: AUTOCRATIC, DEMOCRATIC AND LAISEZ FAIRE LEADERSHIP
9. Does the insurance company apply autocratic leadership or democratic leadership or
Laisez faire leadership?
Explain:
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
…….
10. How do employees included in management by executive to enhance democratic
leadership?
Explain: ……………………………………………………………………………..
11. How many employees are conversant with Laisez faire leadership?
[ ] All [ ] Most [ ] Some [ ] None
12. Indicate by ticking the degree to which the following autocratic leadership or democratic
leadership or Laisez faire leadership affects the insurance company performance. The
scale to be used where 1 – Very low extent, 2 – Low extent, 3 – moderate extent, 4- great
extent and 5 – Very great extent
Aspects 1 2 3 4 5
Directing manager makes decision by himself or herself without
involving other company’s employees
Directing manager punishes all who question the accuracy
decision undertaken by executive board
The directing manager formulate policies in management of the
company but does not control
Directing manager organizes staffs training on certain issues
affecting the company
Directing manager allow departments to make their own
decisions
Directing manager encourages employees good working
relationship
Directing manager allow staff development

13. Tick the extent on which the various leadership styles address the performance of the
insurance company
[ ] Very great extent [ ] Great extent [ ] Moderate extent [ ] Low extent [ ] No extent
14. Indicate by ticking the degree to which the leadership type affects the following aspects
of insurance company performance
Aspects 1 2 3 4 5
Increase customers services
Increase profit
Increase performance
Increase employees’ creativity
THANK YOU

References
Cheng, C.M. and Lai, S.H., 2009. A consensus sampling technique for fast and robust model
fitting. Pattern Recognition, 42(7), pp.1318-1329.
Etikan, I., Musa, S.A. and Alkassim, R.S., 2016. Comparison of convenience sampling and
purposive sampling. American Journal of Theoretical and Applied Statistics, 5(1), pp.1-4.
Einarsen, S., Hoel, H. and Notelaers, G., 2009. Measuring exposure to bullying and harassment at work:
Validity, factor structure and psychometric properties of the Negative Acts Questionnaire-Revised. Work &
Stress, 23(1), pp.24-44.
Shields, C.M., 2009. Transformative Leadership: A Call for Difficult Dialogue and Courageous
Action in Racialised Contexts. International Studies in Educational Administration
(Commonwealth Council for Educational Administration & Management (CCEAM)), 37(3).
Salaria, N., 2012. Meaning of the term descriptive survey research method. International journal of
transformations in business management, 1(6), pp.1-7.
Spiliotopoulou, G., 2009. Reliability reconsidered: Cronbach's alpha and paediatric assessment
in occupational therapy. Australian Occupational Therapy Journal, 56(3), pp.150-155.