Leadership Style: Impact on Organizational Culture and Staff Retention

This essay examines the impact of various leadership styles on organizational culture and staff retention, focusing on theories such as transactional and transformational leadership, situational leadership, and the Job Characteristics Model. It discusses how different leadership approaches influence employee motivation, workplace culture, and retention rates, particularly within the retail industry. The research methodology emphasizes a qualitative approach, utilizing case studies and secondary data sources to analyze the effectiveness of different leadership styles in fostering a positive work environment and retaining employees. The analysis suggests that transformational and situational leadership styles are more effective in creating long-term motivation and adaptability, leading to better staff retention and a positive organizational culture.

The Impact of leadership
style on organizational
culture and staff
retention

Table of Contents
Review of Theories and Frameworks..............................................................................................1
Research Methodology....................................................................................................................3
REFERENCES................................................................................................................................4

Review of Theories and Frameworks
According to the view point of the Xenikou, A. (2022), it has been seen and analysed that
the leadership plays a vital role in helping and supporting a business organisation to create and
maintain a high performing environment as well as leading a positive workplace culture that
encourage higher employee engagement and retention. It has been reviewed that a vital role is
being played by the leaders in creation a positive culture based on offering continual training as
well as enhanced opportunities to sharpen their skill and development that supports higher
commitment and loyalty level in staff to have higher retention rate (Leitão & et. al., 2022). Some
of the key leadership theories and framework that are being used in retail industry has been
discussed below reflecting the Impact of leadership style on organizational culture and staff
retention (Leitão, M. & et. al., 2022)
Transactional and Transformational Leadership Theory
With respect to the information provided by the KHUGSHAL, R., & CHAUBEY, D.
(2022), it has been analysed and seen that the transactional leadership theory is tend to be based
on the idea that the managers need to give some valuable in exchange of efforts and commitment
of employees working within retail industry to get something they want. Thus, the transactional
theory of leadership style tend to focus on the fact that workers of a form are not tend to be self
motivate and required a structured and instruction set of benefits in order to complete and
accomplish a task on timely and correct manner. Along with this, the transactional theory of
leadership tend to use when the employees are motivated to complete their roles and duties in
efficient manner. Further, use and exchange of some rewards has been made for this efficient
working. Thus, a higher level of motivation is being lead by the transactional theory based on
meeting monetary needs of employees that creates a culture of higher efficiency along with
retaining employees for longer term based on exchange of higher perks and (Islam & et. al.
2022). On the other hand, the transformational leadership theory is also effective and plays a
vital role in creating and positive culture that attract and retain customers for longer period
through creating an intrinsic motivation (Loomer, & et. al. 2022). Thus, the transformational
leadership style tend to focus and emphasis on the inspiring others followers and employees
based on a higher degree of coordination, communication as well as improve cooperation that
cater the staff for having long term retention (Chang, Guo & Evans, 2022). Further, it has been
also seen and analysed that the transactional form of the leadership style is tend to be focused on
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goals and comprises of the use of rewards and punishment to have higher employee motivation
in order to ensure higher retention of the employees (Xenikou, 2022). However, the
transformational leadership theory is tend to be focused on vision and make use of the charism
and enthusiasm in order to carte a positive workplace culture to have higher retention of staff
(Menard & Coulier, 2022). Beside this, the transactional theory is tend to be reactive in nature
thus lead to short term motivation in emolyess. While on the other hand the transformational
leadership framework are tend to be the proactive in the nature and thus supports a long term
motivation in employees. Therefore, implication and use of the transformational leadership style
is tend to be seemed more appropriate and useful for the retail pharmacies within XPG as it
focuses on long term inspiration in employees along with having higher integrity and
cooperation to create positive workplace culture that encourage and retain employees for a
longer period of time (Islam & et. al. 2022).
Situational Leadership Theory
according to the view point of the Menard, S., & Coulier, S. (2022), the situational
leadership theory is tending to be related and associated with the leaders who tend to adopt the
different leadership style and frameworks according to the prevailing situation. Thus, use and
implication of the situational leadership style brings and leads to higher development level of
team and employees by the way of leading higher adaptability and tend to set a beneficial
balance for the whole organisation. In accordance to the retail pharmacies within XPG it has
been seen that it is working in a highly dynamic nature of the business environment thus, at that
making use of situational leadership theory is appropriate as it brings a hiker level of the
flexibility within the form along with creating a comfortable environment for the worker to
encourage higher retention level (Menard & Coulier, 2022). Along with this, it has been also
seen that within retail pharmacies within XPG store managers are tend to be the key to
orchestrating the implementation of corporate strategy. Thus, the manager need to have a direct
interaction with both regional managers and frontline employees thus, at that time implication of
situational leadership support better balance within needs of both. Along with this, yet a little
research attention is focused upon the pivotal role that need to be performed by the managers
they play or the resulting sales and profit performance that is derived (Chang, Guo & Evans,
2022). Thus, implication and use of the situational leadership style is also tend to be vital and
suitable to meet the different phase of development within a form based on higher flexibility and
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adaptability along with leading a better workplace balance that attract and retain employees for
longer period of time (Rabiul, & et. al. 2022).
Job Characteristics Model
According to the view point of the Chang, Y. S., Guo, J. H., & Evans, J. M. (2022) it has
been seen that the Job Characteristics Model is a theory that is based on the idea that a task in
itself is the key to the employee’s motivation. In short, a boring and monotonous job is disastrous
to an employee’s motivation whereas a challenging, versatile job has a positive effect on
motivation. Thus, to ensure and maintain a positive workplace culture and have higher retention
of employees five core characteristics of job design are being provided by the Job Characteristics
Model which includes and comprises of the skill variety, task identity, task significance,
autonomy, and job feedback. Skill variety refers to the degree to which a job demands different
activities in the execution of the tasks, where various skills and talents of the working person are
used. On the other hand, task identity present the degree to which work tend to demand to
complete process while task significance supports the degree to which job has a substantial
impact on live of employees (Leitão & et. al., 2022). Further, Autonomy tend to reflect the
degree to which an employee can work independently thus supports higher confidence level.
Beside this, Feedback tend to supports better guidance and timely correction to supports
continuous improvement and positive workplace culture to support higher employee retention.
Research Methodology
It forms out a vital part of investigation that present information about the tool and
techniques applied to undertake and carry out an investigation. A discussion about key aspects
and form of research methodology used and applied within current study is provided as below:
Research method- The research choices which are usually utilized by the investigators in
study involves quantitative and qualitative research choice. The qualitative research choice is the
method of gathering non-numerical information on the study topic and in quantitative research
choice, numerical data or information is gathered which is easier to collector and analyse. Apart
from this it is also based on the large sample of participants and the information can be
objectively measured in numeric form (Loomer, & et. al. 2022). With respect to current study
use of the qualitative nature of the investigation is seemed more appropriate and justifiable as it
supports in doeth review and analysis of fact to effectively analysis about the impact of
leadership style.
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Research strategy- this section of the research method tend to provide an entire plan for
collection of data that tend to be comprises of many tools such as the case study, action research,
experiments, observation, etc. With respect to current study use of the case study is method is
seemed more appropriate and useful as this form of the research focuses on in-depth study of a
particular case and it also supports that the data is collected from different sources to effectively
meet and achieve the set objective. In current investigation industry case study is being adopted
that is focused on retail industry. The main focus of current study is on the retail pharmacies
within XPG store (Islam & et. al. 2022).
Data collection- there are two main sources of data collection comprises of the primary and
secondary sources. Out of these the use of the primary source is tending to be more time
consuming in nature thus application and unitisation of only secondary source of information has
been made within current project. The use of secondary source of data comprises of the analysis
and review of pre-exiting set of information that forms a base and framework for creation of
better knowledge. With respect to current study use of the company annual reports, industry
magazines or industry data along with the other set of online article, boos, journals and e-
literature would be made to review data on tropic of Impact of leadership style on organizational
culture and staff retention (Rabiul, & et. al. 2022).
REFERENCES
Books and journal
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Chang, Y. S., Guo, J. H., & Evans, J. M. (2022). Flexible but stable: the mediated influence of an
organization’s culture on performance. Asian Business & Management, 1-30.
Islam, M. A, & et. al. (2022). Moderating role of psychological empowerment on the relationship
between green HRM practices and millennial employee retention in the hotel industry of
Bangladesh. Business Strategy & Development, 5(1), 17-29.
KHUGSHAL, R., & CHAUBEY, D. (2022). ORGANIZATIONAL STRATEGIES FOR
EMPLOYEES RETENTION IN THE EMERGING ENVIRONMENT A STUDY OF
INSTITUTIONS OF HEALTHCARE ORGANIZATIONS IN UTTARAKHAND. Book
Rivers.
Leitão, M. & et. al., (2022). Effects of leadership and reward systems on employees' motivation
and job satisfaction: an application to the Portuguese textile industry. Journal of Strategy
and Management.
Loomer, L., & et. al. (2022). Association between nursing home staff turnover and infection
control citations. Health services research, 57(2), 322-332.
Menard, S., & Coulier, S. (2022). Corporate Coaching: The Importance of an HR Integrated
Program. SAGE Publications: SAGE Business Cases Originals.
Rabiul, M. K. & et. al. (2022). Linking leadership styles to communication competency and
work engagement: evidence from the hotel industry. Journal of Hospitality and Tourism
Insights.
Xenikou, A. (2022). Leadership and organizational culture. In Handbook of Research Methods
for Organisational Culture (pp. 23-38). Edward Elgar Publishing.
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