Impact of Leadership on Retail Business Performance Analysis

This report investigates the impact of leadership on the business performance of the retail industry. It explores the importance of effective leadership in a competitive market, highlighting challenges such as employee turnover, technological inadequacies, and pricing issues. The study aims to answer key research questions, including how leadership influences performance, the effects of ineffective leadership, and recommendations for leaders. The research includes a conceptual framework based on leadership theories like Great Man Theory, Trait Theory, and Behavioral Theory, to analyze how leadership styles affect business outcomes. The expected outcome is to provide insights into the relationship between leadership and business success, offering guidance for retail managers and future leaders. The report also includes a literature review, methodology, and a Gantt chart for project management.

Running head: IMPACT OF LEADERSHIP ON BUSINESS PERFORMANCE
IMPACT OF LEADERSHIP ON BUSINESS PERFORMANCE
Name of the Student
Name of the University
Author Note

1
IMPACT OF LEADERSHIP ON BUSINESS PERFORMANCE
Table of Contents
Introduction:....................................................................................................................................2
Statement of the Problem:...............................................................................................................3
Research Objectives and Questions:................................................................................................4
Justification of the Project:..............................................................................................................4
Expected Outcome:..........................................................................................................................5
Conceptual framework and research hypothesis:............................................................................6
Methodology:.................................................................................................................................10
Literature Review......................................................................................................................11
Data Collection Method.............................................................................................................11
Data Analysis Method...............................................................................................................12
Organization of the Study:.............................................................................................................13
The Gantt chart:.............................................................................................................................15
Reference:......................................................................................................................................17

2
IMPACT OF LEADERSHIP ON BUSINESS PERFORMANCE
Introduction:
The retail industry refers to the comfortable and convenient process of business in the
business industry (Gregory, 2015). Retailing is one of the major and most popular areas in the e-
commerce, which entails the selling and buying of the goods as well as service to the consumers.
The targeted market if the retail industry is he educated consumers as this is the section of the e-
commerce. Apart from only the selling and buying of the products and service, the retail industry
also focuses on the personalized customer service (Zhu & Akhtar, 2014). However, the retail
industry is one of the fastest and rapid changing industries with vibrant and various features that
work as the attracting to the customers. Apart from the e-commerce the retail business also is a
combination of the small and medium sized retail stores.
However, the retail industry contains diverse activities and that make the basis of the
retail business. To the effective operations of the business and the better performance in the
industry, the retail business requires effective leadership (Chen & Yang, 2012). This is because
the retail industry contains the activities and trends such as interaction with the consumers,
customer service, retail marketing, employment opportunities and sales promotion. The leaders
of the retail industry are the management system of the retail organization that ensures the better
business performance. The effective leadership can influence the employees to take risk and
initiatives, stimulate the innovation and other, which can lead to the overall enhancement of the
business performance of the retail organization (Men & Stacks, 2013). The effective and proper
leadership is thus needed for the retail business in order to strengthen the business performance
of the organizations in the industry as well as in the consumer market. In other way the retail

3
IMPACT OF LEADERSHIP ON BUSINESS PERFORMANCE
business organization is dependable on the management of the same in terms of the business
performance.
Statement of the Problem:
Leadership is the power and the authority in of a person or a group of person for getting
the things done (Northouse, 2015). In other way, leadership in the business entails the authority
of the management of a business organization for the managing and guiding the operations and
activities in the business in order to get effective outcome from the same (Mendenhall, 2012).
The retail organization being one of the major and popular aspects of the business in the present
global context is excessively competitive and requires effective leadership for the better business
performance. The problem that is apparent in the retail business can affect the business
performance of the retail organization in the global market (Shao, Feng & Liu, 2012). Several
problems predominant in the retail business are the employee turnover, inadequate technological
competencies and issues with price of the product and service.
The problems indicate the negative leadership of the retail business organization. In
addition, the problems create a negative impact on the performance of the firm in the specific
industry (Gray & Williams, 2012). Apart from these problems, there are other issues. However,
the study researches and identifies the stated problem as the major one. The employee turnover
being the initial and major problem refers to the ineffective leadership of the management of the
retail business organization. The reason for the employee turnover is the numerous options from
the same industry by different organizations are presented in the market and therefore, it is the
responsibility of the leaders to get hold of the employees (Mowday, Porter & Steers, 2013). The
technological intervention is needed to be done by the leaders in order to get all the employees

4
IMPACT OF LEADERSHIP ON BUSINESS PERFORMANCE
aware of the new technologies in retain business. Here, in this connection, this must be noted that
major portion of the retail business is based on the technologies (Gregory, 2015). In the
excessive competitive global market, the price of the products and service is one of the
challenges to the leaders. The lack of competency to face and resolve the challenge issue
indicates the incompetent leadership style in the business performance (Grewal et al., 2012).
Most of the retail organization are seen lacking behind with these issue. Therefore, the research
states these problems as the major one in the retail industry’s business performance.
Research Objectives and Questions:
The overall purpose of the research is to investigate the impact of the leadership on the
business performance of retail industry in the competitive market (Chen & Yang, 2012). In
addition, the research aims to identify the problem and issue in the retail business organization
that indicates the negative or ineffective leadership. More specifically, the research proposes the
answer of the following probable question:
1. How did the leadership influence retail business performance?
2. What are the impact on the retail business industry due to ineffective and negative
leadership?
3. How do the retail industry response to the major leadership challenges?
4. What are the recommendations to the leaders of the retail industry for enhancing the
business performance?

5
IMPACT OF LEADERSHIP ON BUSINESS PERFORMANCE
Justification of the Project:
Leadership is the basic and one of the prime factors of the business industry, especially of
the retail industry. The research being on the impact of the leadership on re retail industry’s
business performance proposes the issues and challenges in the retail business faced by the
management, which can later become the risk factor for the organizations. The aim of the
research being to identify both positive and negative impact of the leadership is justified for the
potential and future leaders to understand and realize the importance of proper and effective
leadership. This research will be beneficial to the retail industry in terms of the following
benefits:
It will help the future leaders to understand the concept and importance of effective
leadership
It will help the potential leaders of the retail industry to identify the management
challenges and issues
Managers of the retail business organization will be able to plan strategies for the
effective and better business performance (Shao, Feng & Liu, 2012)
The purpose, result and the overall study of the research paper will be helpful and guiding
material to the retail managers and the future researchers
The proposal will be helpful for the future and young personnel to start new business in
the retail industry
Expected Outcome:
The researcher is expecting the study will provide a result that will either be positive or
negative. The end result of the research will provide the effect of leadership on the business

6
IMPACT OF LEADERSHIP ON BUSINESS PERFORMANCE
settings. The hypothesis is formulated accordingly stating the advantages or disadvantages of
implementing leadership in the business. It will also demonstrate the effectiveness of particular
style of leadership in the particular type of industry. This is because the previous theories and
literature available in the market states the efficiency of leadership styles in particular settings.
As the industry under study is retail industry, hence, the result will show the appropriate
leadership style that will bring improvement in the retail business. The way of conduct is also
expected from the research. Moreover, this will also demonstrate the change of atmosphere in the
workplace due to the implementation of proper leadership style in the business. This research
will help the future scholars for understanding the impact. It has validity for the retail owners as
they will be able to gain knowledge which leadership will be best suited for the type of business
they are doing and best way to implement them and act accordingly.
Conceptual framework and research hypothesis:
Every employee works towards satisfying the basic goal, that is, achievement of success.
The process, which they adopt for this purpose, invokes the leader within them. The method is
same for all of the employees of retail industry; however, the only difference lies in the approach
towards execution of the activities (Choudhary, Akhtar, & Zaheer, 2013). Theoretical approach
towards leadership enhances the clarity of the readers towards the concept. Mentionable theories
in this direction are Great Man Theory, Trait Theory, Behavioral Theory, contingency theory,
Transformational theory and Transactional theory.

7
IMPACT OF LEADERSHIP ON BUSINESS PERFORMANCE
Figure 1: Conceptual framework of Leadership and its impact on the business performance
One of an important aspect here is the behavioral approach towards the allocated duties
and responsibilities. This aspect brings behavioral theory into the discussion. In terms of
leadership, the employees of retail industry need to expose rational behavior. Emerging
successful in making judicious application of rational thinking in the workplace activities,
prepares the employees of retail industry of the retail industry towards leadership (Dubey,
Gunasekaran & Ali, 2015). Presence of rationality and maturity in thinking within the traits,
takes the personnel much closer to leadership. On the contrary, exposure of immature and
irrational behavior needs thorough modification of the exposed behavior. Spontaneity in this
modification enhances the personality of the employees, which can be correlated with the Great
Man Theory. Viewing it from the other perspective, feeling the inner urge to modify the exposed
performance, results in the transformation of the employee into leaders.
Delving deep into the Trait Theory, the essential components of leadership are:-
adjusting ability, understanding, helpful, supportive among others. Presence of these
characteristic traits within the managers is obvious for enhancing the productivity of the retail
industry. Along with this, exposure of these traits by the employees is their efforts towards
attaining promotion to the level of the managers (Rock, 2014). Desparate attempts in this
direction prove beneficial for the retail industry in terms of extracting the best out of the
employees. On the other hand, absence of willingness and eagerness within the employees
proves harmful for the industry in terms of managing the business activities in an efficient and
effective manner.

8
IMPACT OF LEADERSHIP ON BUSINESS PERFORMANCE
Viewing it from the perspective of the managers, the segment bears direct relationship. It
is the managers, whose guidance and support enables the employees to perform the allocated
duties and responsibilities in an efficient and effective manner (Hartnell et al., 2016). Provision
of motivation and encouragement to the employees generates an urge within the employees to
expose performance, which aligns with the aims and objectives of the industry.
Approach is one of the other aspects, which lays the foundation of leadership. In
workplace, the managers need to adopt some innovative means, to stand out from the crowd.
Here, rational thinking is one of the essential determinants for assessing the awarded designation
to the managers. Negativity in this direction affects the efficiency of the workplace activities in
the retail industry. Critical reflection into this negativity attaches an interrogative parameter to
the role played by the managers in terms of managing the workplace activities (Wang et al.,
2014).
Evaluation is the one of the other aspects, which forms the parameters of leadership. This
is applicable for the managers in every industry including the retail. Evaluation is an effective
means for altering the personality in case of the employees, managers and the other staffs. Self-
observation is a typical component of evaluation, which brings regulation over the expressions
and actions of the personnel of retail industry. For this, goal-setting theory proves appropriate.
Setting short-term goals improves the focus of the personnel in terms of invoking the leader out
of the employees (Goleman, Boyatzis & McKee, 2013). The performance of these goals needs to
be tracked in terms of assessing the current position and the steps needed to reach to the
benchmark level of performance. For this, templates and checklists prove quite helpful. Time
management also occupies an important position for enhancing the preconceived leadership
skills and abilities. Allotment of times for the activities generates confidence of the managers

9
IMPACT OF LEADERSHIP ON BUSINESS PERFORMANCE
and employees of the retail industry in terms of executing the challenging and enduring tasks in
an efficient and effective manner. Regularizing this execution enables the personnel to complete
the tasks within less time (Chang, Chen & Chiou, 2015).
Utilization of the potential skills also adds value to leadership skills and abilities.
Indulging in training programs is an effective option for the managers in terms of transferring the
possessed skills to the employees. This transfer of skills enhances the stability in the relationship
between the managers and the employees. Maintenance of this stability is one of the other
parameters of leadership. Testing the employees regarding their ability to make practical
application of the learnt skills is also a self-introspection of the managers in terms of efficient
execution of the allocated roles and responsibilities (Birasnav, 2014).
Leadership also gains an important position in management of the workplace activities,
especially conflicts, discriminations, harassments and solving the queries of the employees (Men
& Stacks, 2013). Patience, understanding and caring attitude of the managers creates a positive
image about the managers in the minds of the employees. On the other hand, lackadaisical
approach towards maintenance of the order, harmony and decorum of the workplace compels the
employees to switch over to industries, which provides job satisfaction (Goleman, Boyatzis &
McKee, 2013). This is a loss for the retail industry.
Acting according to the situation is a wise step for the leaders. However, if the managers
come up with something innovative well in advance, it proves beneficial in terms of securing the
market position within the competitive ambience. On the contrary, adopting innovative steps
after some adverse situation, it reflects continuity with the other brands. Moreover, the customers
lose interest in such brands, which adds vulnerability in the market position .

10
IMPACT OF LEADERSHIP ON BUSINESS PERFORMANCE
Based on all of these propositions, the following two hypotheses can be developed:
H0: Leadership does not bear any relationship with the workplace performance
H1: Leadership occupies the central position for enhancing the productivity of the workplace
Methodology:
The methodology section of the report discusses the research methods, approaches and
designs that are used for the completion of the research. Various methods are available that can
be used for conducting the business research; however, some of them are effective to provide the
desired outcome. Those which are considered for this particular research are discussed in this
section.
Literature Review
This is the study of research articles, journals, books and other authentic resources on the
relevant topic of study. This is conducted in prior to data collection and other steps of research
for gaining an in-depth idea of the topic. In addition to that, the idea of the framework of the
research will also form to help carrying out the research (Terrell, 2012).
Sampling and Sample Size – The first step towards data collection will be the identification of
the sample size from which data will be collected. It is necessary for restricting the research in a
particular segment of the broader society and maintaining the focus of research (Desu, 2012).
Data Collection Method
Data collection is the process of obtaining information and evidences for the research.
The methods that will be handy for this research are:

11
IMPACT OF LEADERSHIP ON BUSINESS PERFORMANCE
Interview – Both open and closed ended interview will be conducted for the collection of
data. Open ended interview will be helpful in collecting qualitative data whereas, the
closed ended interview will be useful for collecting both qualitative and quantitative data.
Questionnaire – Questionnaire will help in collecting the quantitative data. The subjects
under study will be provided with a set of questions that they need to answers within a set
of answers. For example, it can be used in taking opinions of employees about the
effectiveness of their manager.
Secondary Research – It includes the review of the existing data of the organization.
Annual report, production report etc. of the will be studied
Data Analysis Method
There are basically two sets of data that are qualitative and quantitative data. Quantitative
data are the numerical data that can be put in the figures, pie charts, excel sheet, mathematical
and statistical modeling etc. On the other hand, data that cannot be quantified are considered as
the qualitative data.
Qualitative data analysis consists of examining, categorizing, tabulating and recombining.
The techniques that are incorporated for this are coding, categorizing and making sense
of the meaning of the data collected (Miles, Huberman & Saldana, 2013). The best way
of concluding the obtained data is the comparison method that is used for this report. In
comparison method, the data collected are compared with the existing data in the
literature and the conclusion is drawn from it (Creswell, 2013).
Quantitative data analysis on the other hand will incorporate descriptive statistics and
hypothesis testing. The descriptive statistics includes the mean, median, standard
deviation and distribution of the variables. This will help to prove the effectiveness of the

12
IMPACT OF LEADERSHIP ON BUSINESS PERFORMANCE
leadership in the business with statistical evidences. Hypothesis testing on the other hand
will justify if the formulated hypothesis is correct of incorrect. Finally, the regression
analysis will also be incorporated in this case for checking the extent of effectiveness of
the leadership in business and which style of leadership is best suited for the situation
(Ragin, 2013).
The research requires the use of all the methodologies mentioned in the above for achieving
the answer of the research. This will help getting accurate solution of the problem the research is
based on.
Organization of the Study:
A short outline of the project report is presented in this part. It is as follows:
Chapter One – The first chapter of the research project will comprise of the research proposal
Chapter Two – A detailed understanding and description of the case will be presented in this
chapter
Chapter Three – This part of the assignment will dictate the methodologies that are used for the
completion of the project
Chapter Four – is comprised with the finding and analysis of the research
Chapter Five – A summary of the findings of the research on ‘Impact of leadership on business
performance’ is provided in this section.
Project Schedule and Budget:

13
IMPACT OF LEADERSHIP ON BUSINESS PERFORMANCE
The research schedule is the timeline of the research work that reflects the allotment of
time for particular task in the process. It is widely known as Gantt chart. The Gantt chart for this
particular research is presented below:
Purpose Estimation of the Expenditure
Literature Review $1000
Data Collection $2500
Data Analysis $1500
Total Estimated Budget $5000
The estimation of the total expenses required for completion of the project is $5000
within the time limit set in the Gantt chart that is 133 days. The total amount will be spent after
various tasks performed as mentioned in the budget table.
WBS Task Name Duration Start Finish Predecessors
0 Research Project 133
days
Fri 06-10-
17 Tue 10-04-18
1 start date 0 days Fri 06-10-
17 Fri 06-10-17
2 Selecting the Research
project 10 days Fri 06-10-
17 Thu 19-10-17 1
3 Documenting the proposal 8 days Fri 20-10-
17 Tue 31-10-17 2
4
Identification of the
methodology to be used in
research work
5 days Wed 01-
11-17 Tue 07-11-17 3
5 review of existing literature 40 days Wed 08- Tue 02-01-18 4

14
IMPACT OF LEADERSHIP ON BUSINESS PERFORMANCE
11-17
6 Data collection process 30 days Wed 03-
01-18 Tue 13-02-18 5
7 Data analysis process 7 days Wed 14-
02-18 Thu 22-02-18 6
8 Concluding the study 10 days Fri 23-02-
18 Thu 08-03-18 7
9 Thesis documentation 20 days Fri 09-03-
18 Thu 05-04-18 8
10 Thesis submission 3 days Fri 06-04-
18 Tue 10-04-18 9
11 Research work ends 0 days Tue 10-04-
18 Tue 10-04-18 10
The Gantt chart:

15
IMPACT OF LEADERSHIP ON BUSINESS PERFORMANCE

16
IMPACT OF LEADERSHIP ON BUSINESS PERFORMANCE

17
IMPACT OF LEADERSHIP ON BUSINESS PERFORMANCE
Reference:
Chen, C. Y., & Yang, C. F. (2012). The impact of spiritual leadership on organizational
citizenship behavior: A multi-sample analysis. Journal of Business Ethics, 105(1), 107-
114.
Choudhary, A. I., Akhtar, S. A., & Zaheer, A. (2013). Impact of transformational and servant
leadership on organizational performance: A comparative analysis. Journal of Business
Ethics, 116(2), 433-440.
Creswell, J. W. (2013). Research design: Qualitative, quantitative, and mixed methods
approaches. Sage publications.
Desu, M. M. (2012). Sample size methodology. Elsevier.
Dubey, R., Gunasekaran, A., & Ali, S. S. (2015). Exploring the relationship between leadership,
operational practices, institutional pressures and environmental performance: A
framework for green supply chain. International Journal of Production Economics, 160,
120-132.
Goleman, D., Boyatzis, R. E., & McKee, A. (2013). Primal leadership: Unleashing the power of
emotional intelligence. Harvard Business Press.
Gray, E. C., & Williams, J. A. (2012). Retail managers: Laissez-Faire leadership is synonymous
with unsuccessful conflict management styles. Open Journal of Leadership, 1(03), 13.
Gregory, J. (2015). The Internet of Things: Revolutionizing the retail industry. Accenture
Strategy.

18
IMPACT OF LEADERSHIP ON BUSINESS PERFORMANCE
Grewal, D., Roggeveen, A. L., Compeau, L. D., & Levy, M. (2012). Retail value-based pricing
strategies: New times, new technologies, new consumers. Journal of Retailing, 88(1), 1-
6.
Hartnell, C. A., Kinicki, A. J., Lambert, L. S., Fugate, M., & Doyle Corner, P. (2016). Do
similarities or differences between CEO leadership and organizational culture have a
more positive effect on firm performance? A test of competing predictions. Journal of
Applied Psychology, 101(6), 846.
Men, L. R., & Stacks, D. W. (2013). The impact of leadership style and employee empowerment
on perceived organizational reputation. Journal of Communication Management, 17(2),
171-192.
Mendenhall, M. E. (Ed.). (2012). Global leadership: Research, practice, and development.
Routledge.
Miles, M. B., Huberman, A. M., & Saldana, J. (2013). Qualitative data analysis. Sage.
Mowday, R. T., Porter, L. W., & Steers, R. M. (2013). Employee—organization linkages: The
psychology of commitment, absenteeism, and turnover. Academic press.
Northouse, P. G. (2015). Leadership: Theory and practice. Sage publications.
Pathak, V., Jena, B., & Kalra, S. (2013). Qualitative research. Perspectives in clinical
research, 4(3), 192.
Ragin, C. C. (2013). The comparative method: Moving beyond qualitative and quantitative
strategies. Univ of California Press.