EMPLOYEE RETENTION

IN IT INDUSTRY
THROUGH
FULL RANGE LEADERSHIP
THEORY

Name A: Name B:
TABLE OF CONTENT

1. The Current Debate

2. Definition of Leadership and Leadership theories in general

3. Importance of Leadership to the Organization

4. Leadership in Management context

5. How the Full Range Leadership theory used in global context

6. Critical Evaluation of Full Range Leadership

7. Recommendation of applying the theory at the turbulent time

8. Conclusion

9. References
CURRENT DEBATE: ANALYSIS ON EMPLOYEE
TURNOVER IN IT INDUSTRY.
Turnover rates in IT industry
Figure1 : Sectors with highest turnover Figure 2 : Reasons for leave
rates

Source: Linkedin, 2017 Source: Linkedin, 2017

CURRENT DEBATE: ANALYSIS ON EMPLOYEE
TURNOVER IN IT INDUSTRY. CONTD…

According to Purohit (2016) there are three types of employee turnover such as Internal
Vs. External, Skilled Vs. Unskilled and Voluntary Vs. Involuntary. Further, there are 5
main reasons been identified accordingly.

1. Mismatch between the level of expectations set at the beginning of the employment

2. Difficulties in adapting to the Organizational culture

3. Mismatch between the employee performance and pay

4. Less opportunities for grow within and career advancement

5. Problems with direct leader and leadership style

WHAT IS LEADERSHIP?

There are many definitions given for leadership as many have attempted to define it
(Stogdill, 1974 cited in Northhouse, 2015)

Furthermore, over the period of time there have been enormous number of
definitions were given for this concept.
DEFINITION OF LEADERSHIP

Definition of leadership provided by Northhouse (2015) has been influenced by

several components such as leadership is a process, leadership involves influence,
leadership in group context, leadership in achieving goals.

Northhouse defined it as “ a process whereby individual influences a group of

individuals to achieve a common goal” (Banerjee, 2015).
EMPLOYEE RETENTIONS THROUGH THE
LEADERSHIP
Theory Developed by Summary of the theory
Trait Theory Bass , Stogdill Traits of a leader and how traits influence
leadership (Northhouse, 2015)
Skills Katz Leader centered view with focus on skills
Approach Mumford, Zaccaro, and abilities that can be learned and
Harding, Jacobs and developed ( Northhouse, 2015)
Fleishman
Behavioral Ohio state university This approach mainly focuses on behavior
Approach University of Michigan of leader such as task and relationship
Blake and Mouton behaviors (Northhouse, 2015)

Situational Hersey & Blanchard Focus on situational understanding and

Approach response appropriately (McCleskey, 2014)

Contingency Fiedler Studies on organizational behavior and

theory how the contingent factors influence
design and function of organization (Hu
and Islam, 2012)
EMPLOYEE RETENTIONS THROUGH THE
LEADERSHIP
Theory Developed by Summary of the theory
Transactional Max Weber Followers are rewarded for meeting pre-
theory Bernard Bass defined goals and performance. Further
focus on maintain a status quo (Nikezic et
al., 2012)

Transformati Burns , Bass & Avolio, Focuses more on effective components of

onal theory Bennis & Nanus , Kouzes leadership and charismatic approach
& Posner, Charismatic - (Northhouse, 2015)
Conger & Kanungo

Full range Bass and Avolio Focuses on three types of leadership

leadership behavior such as laissez-faire leadership,
transactional leadership and
transformational leadership (Romascanu
et al., 2017)
WHY FULL RANGE LEADERSHIP IS IMPORTANT TO
THE ORGANIZATION?
Importance of Full range leadership Citations

Leader can evaluate which style Leader can select one style from palate of
matches their organization styles (Kirkbride, 2006)

To provide effective leadership style Transformation leadership style considered to

be more effective in followers commitments,
performance and satisfaction (Romascanu et
al.,2017)

To achieve the vision of an Idealized influence instill faith in future by

organization. using vision (Lim, 2016)
WHY FULL RANGE LEADERSHIP IS IMPORTANT TO
THE ORGANIZATION? CONTD…
Importance of Full range leadership Citations

To motivate followers Contingent reward motivates through reward

(Al-Araimi, 2012)

Transformational leadership motivate and

inspire the followers (Lim, 2016)

To have positive communication Inspirational Motivation factor encourage

effective communication (Lim, 2016)

To encourage innovation Intellectual stimulation factor encourage

employees to think out of box (Ogola et
al., 2017)
LEADERSHIP IN MANAGEMENT CONTEXT

Video :

https://www.youtube.com/watch?v=dwERdD5-Vdo
FULL RANGE LEADERSHIP STYLE AND EMPLOYEE
RETENTION IN GLOBAL CONTEXT

• A research done on IT industry in New Delhi by Sareen and Agarwal (2016) stated
that to curb with high attrition rates, transformational leadership style should be
adopted.

• Retention of middle or operational level employees can be done through

transformational style (Sareen and Agarwal, 2016).

• Asrar-ul-haq and Kuchinke (2016), state that transformational leadership style and
contingent reward has positive impact on employee turnover in banking industry in
Pakistan.

• A research done by Amankwaa and Anku-Tsede (2015) in Ghanaian banking industry

found that transformation style is a efficient tool for employee retention.
CRITICAL EVALUATION OF FULL RANGE
LEADERSHIP STYLE
Figure 3: The Model of the Full Range of Leadership.

Source: London Metropolitan University, 2018

CRITICAL EVALUATION OF FULL RANGE
LEADERSHIP STYLE CONTD…
Figure 4: The Model of the Full Range of Leadership

Source: Mirshahi, 2015

PROS AND CONS OF FULL RANGE LEADERSHIP
THEORY
Pros Cons
Long term benefits In lasseiz faire, absence of leadership,
unaware of leadership performance, don’t
take responsibilities

Collaboratively achieving the objectives Management by exception –Passive,

leader is involving only when something
is wrong, waiting problems to arise
Setting clear expectations of rewards and Transformational leadership- taking long
outcomes time to change a set up
Accomplishments are recognized and
rewarded
Encourage innovative thinking and growth
of employees
Motivating employees to accomplish goals
Help subordinates to achieve far more
than they could expect
RECOMMENDATIONS FOR THE EMPLOYEE RETENTION
THROUGH FULL RANGE LEADERSHIP THEORY

• Use of incentives/allowance for shift work in order to encourage extra effort/ to

influence employee motivation/ achieve organizational commitment.

• Employees to feel that they are part of the decision making/ giving them more
responsibilities. They are responsible for achieving objectives of the organization
(vision and mission)

• Effective communication- Employees are well aware of what is happening in the

organization

• More opportunities for learning and career advancement-Encouraging innovation by

allocating time
CONCLUSION

• The main problem in IT industry is staff turn over

• Leadership styles in full range leadership theory can be taken into account to the
given context in order to address this issue. With reference to several studies and
researches done, it’s observed that transformational leadership style is the best
leadership style that should be adopted in order to curb with the prevailing high
turnover rate in IT industry.

• The results of the multiple regression analysis showed that transformational

leadership style is more efficient and impactful on retention of employees across the
organization as compared to other leadership styles.

• Full range leadership style more focuses on higher productivity, better understanding
of employees and collectivism followed by greater retention.
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