TRANSFORMATIONAL LEADERSHIP:

THE RELATIONSHIP BETWEEN TRANSFORMATIONAL LEADERSHIP AND

ORGANIZATIONAL PERFORMANCE

HOW TRANSFORMATIONAL LEADERSHIP CAN HELP IMPROVE BUSINESS

PERFORMANCE WHILE OVERCOMING CHALLENGES EXPLORE NEW
OPPORTUNITIES AND REDEFINE STRATEGIES

Final Year Thesis

Final Year Thesis for MBA 2010 - Part time

Course : FE2504 2012 Master's thesis
Teacher : Fredrik Jorgensen
Author : Mohammad Ali (moaf10)
Email : Muhammad.ali@ericsson.com
DoB : 26th March, 1977
Submission Date : 1st August 2012
Rev : I - Final Thesis
Abstract
Background and Problem: In the current economic climate the circumstances
and the environment for companies constantly change and organizations which in
the future want to be competitive have to adapt to these new conditions and
market requirement else they are forced to be out of business. Seeing the rapid
change in telecom sector with flat sales in many countries during 2008, 2009 and
2010 Ericsson decided to do a major re organization in 2010. Ericsson
management set out to restructure the company to trim off fat and to help the
company function as a leaner and more productive entity by assigning
transformational leaders that can help company cope with the changing market
conditions with focus on business performance, growth, new market segments
and getting more close to customer. As a result of that change Ericsson Saudi
Arabia that was known as Market Unit Kingdom of Saudi Arabia (MU KSA) part of
23 Market Units across the globe transformed to Customer Unit Kingdom of Saudi
Arabia (CU KSA) part of Region Middle East (RMEA) with new Head and
management team. By 2009-2010 Ericsson CU KSA was facing issues like flat
sales, operators were cautious to spend more money since revenues were
declining, emergence of Chinese players in the marker resulted in dramatic
culture shift in industry where business models and ways of working changed and
Ericsson in Saudi Arabia was having direct impact on revenue and market share.
During 2008, 2009 and 2010 Ericsson in Saudi Arabia lost local market share
from 60% to 50% and a complete overhaul was inevitable.
Purpose: One of the primary objectives of this study will be to determine the
relationship of transformational leadership to organizational performance by
analyzing data collected from Ericsson Saudi Arabia. It will be analyzed if new
management in Ericsson Saudi Arabia has the capabilities of transformational
leadership. Later I’ll try to establish correlation of transformational leadership
towards strategic management, Organizational culture and Employee Motivation
& Commitment to see if there is any significant impact of these that will help
overcome existing market challenges explore new opportunities and redefine
strategies while resulting in positive business growth and performance.
Methodology: For the purpose of research a study a mix of qualitative and
quantitative approach was chosen. Questionnaire surveys were used as part of
quantitative research. Interview surveys together with Sales reports and balanced
score cards were used as part of qualitative research. A total of 48 questionnaire
surveys along with 8 interviews form different members of management in CU
KSA were conducted. Data analysis tool function in Excel was used to figure out
mean, median and standard deviation for Transformational leadership attributes.
Data analysis tool was also used to calculate correlation coefficient factor
between transformational leadership with strategic management, organizational
culture and business performance.

2
Analysis and Conclusion: It was discovered after analysis conducted using
interview and survey results that Ericsson CU KSA Head and Management fulfill
the criterion of transformational leadership having strong presence of
transformational leadership attributes namely vision, Inspirational, role model,
support for personal growth, trust and consideration for followers needs. It was
also discovered that transformational leadership has a strong correlation towards
strategic management, organizational culture, employee Motivation and business
performance. Data collected from Interviews, Sales reports and Balanced Score
Card supported the data analysis of questionnaire. This means that if companies
want to experience growth in their business especially in these days of tough
competition, there should be focus on making sure the leadership is
transformational with strong emphasis on process of Strategic Management,
fostering organization culture and boosting employee motivation & commitment
that will lead towards positive Business Performance.

3
Acknowledgements
First and last, I thank God for giving me strength, the patience, the joy of seeking
knowledge and the ability to apply it in my life.

Secondly I would like to say special thanks to my family. I am forever grateful to

my mother for her support, encouragement and prayers. She motivated me
whenever I felt down and cheered for me when I was feeling good. On day to day
basis I had my wife on my side. She took charge of daily issues and freed my
mind to focus on my studies.

Thirdly I would like to say special thanks to people in my office who made this
thesis possible. I would like to thank people in Ericsson who were kind enough to
provide time and provided their feedback for the survey.

Last but not the least I would also like to thank our teacher Fredrik Jorgensen
who guided us all the way through with proper guidance.

4
Contents
1 INTRODUCTION .................................................................................................................... 7

1.1 BACKGROUND INFORMATION ...................................................................................................... 7

1.2 PROBLEM DISCUSSION ................................................................................................................ 8
1.3 AIMS AND OBJECTIVES................................................................................................................ 9
1.4 RESEARCH’S THEORETICAL AND PRACTICAL RELEVANCE ........................................................... 9
1.5 CASE COMPANY ........................................................................................................................ 11
1.6 THESIS STRUCTURE ................................................................................................................... 13
1.7 LIMITATIONS ............................................................................................................................. 13

2 THEORETICAL FRAMEWORK ........................................................................................ 14

2.1 LEADERSHIP AND ITS IMPACTS ON ORGANIZATIONAL PERFORMANCE ....................................... 14

2.2 TRANSFORMATIONAL LEADERSHIP ........................................................................................... 15
2.2.1 How transformation takes place ............................................................................................... 16
2.2.2 Attributes of transformation leader .......................................................................................... 18
2.3 STRATEGIC MANAGEMENT ....................................................................................................... 19
2.4 TRANSFORMATIONAL LEADERSHIP AND STRATEGIC MANAGEMENT ......................................... 22
2.5 ORGANIZATION CULTURE ......................................................................................................... 23
2.6 TRANSFORMATIONAL LEADERSHIP AND ORGANIZATION CULTURE .......................................... 24
2.7 EMPLOYEE MOTIVATION & COMMITMENT ............................................................................... 24
2.8 TRANSFORMATIONAL LEADERSHIP AND EMPLOYEE MOTIVATION & COMMITMENT .................. 25
2.9 BUSINESS GROWTH & PERFORMANCE ...................................................................................... 26
2.10 TRANSFORMATION LEADERSHIP AND BUSINESS GROWTH & PERFORMANCE ............................ 27

3 METHODOLOGY ................................................................................................................. 29

3.1 RESEARCH APPROACH ............................................................................................................... 29

3.2 DATA COLLECTION .................................................................................................................... 29
3.3 SURVEY METHODS .................................................................................................................... 30
3.3.1 Questionnaire ........................................................................................................................... 30
3.3.2 Interview ................................................................................................................................... 32
3.3.3 Yearly and Quarterly Performance Reports and Score Cards ................................................. 33
3.4 DATA ANALYSIS METHOD ........................................................................................................ 33
3.4.1 Qualitative Data obtained through interviews and Yearly Performance Reports .................... 33
3.4.2 Quantitative data obtained through questionnaire................................................................... 33
3.5 VALIDITY AND RELIABILITY ...................................................................................................... 34

4 RESULTS ................................................................................................................................ 35

4.1 SURVEY RESULTS...................................................................................................................... 35

4.1.1 Respondents Background Statistical Results – Survey Section 1.............................................. 35
4.1.2 Ericsson CUKSA Management as Transformational Leadership and its impact Statistical
Results – Survey Section 2 ........................................................................................................ 35

5
4.1.3 Level of Significance................................................................................................................. 40
4.2 INTERVIEW RESULTS ................................................................................................................. 40
4.3 ECONOMIC RESULTS ................................................................................................................. 48
4.3.1 Balanced Score Cards .............................................................................................................. 48
4.3.2 Sales Report.............................................................................................................................. 52
4.3.2.1 CU KSA Reports ..................................................................................................................................... 52
4.3.2.2 Regional Reports...................................................................................................................................... 54

5 DATA ANALYSIS ................................................................................................................. 56

6 DISCUSSION, CONCLUSION AND IMPLICATIONS .................................................... 61

7 RECOMMENDATIONS FOR FURTHER RESEARCH .................................................. 64

8 REFERENCES ....................................................................................................................... 65

8.1 PUBLISHED RESOURCES ............................................................................................................ 65

8.2 INTERNET RESOURCES .............................................................................................................. 69
8.3 ERICSSON INTERNAL RESOURCES ............................................................................................. 70

9 ABBREVIATIONS ................................................................................................................ 70

10 APPENDIX ............................................................................................................................. 72

10.1 APPENDIX A - ORGANIZATION STRUCTURE .............................................................................. 72

10.2 APPENDIX B – QUESTIONNAIRE ................................................................................................ 75
10.3 APPENDIX C – INTERVIEW GUIDE FOR QUESTIONS WITH EP HEADS/KAM............................... 78
10.4 APPENDIX D - CONTRACT TYPES .............................................................................................. 79
10.5 APPENDIX E – DETAILED DATA DESCRIPTION (RESPONDENT DETAILS) ................................... 79
10.6 APPENDIX F – DETAILED DATA DESCRIPTION (TRANSFORMATIONAL LEADERSHIP AND ITS
ATTRIBUTES) ............................................................................................................................................ 82
10.7 APPENDIX G – DETAILED DATA DESCRIPTION (TRANSFORMATIONAL LEADERSHIP AND ITS
IMPACT) 83

6
1 Introduction

1.1 Background Information

In today’s complex and quickly varying life of business, the conditions and the
environment for companies constantly change and organizations which in the
future want to be competitive have to adapt to these new conditions. Those who
don’t will probably loose against its competitors and eventually disappear from
the market. The needs of today’s customers have been changing rapidly and
companies are expected to respond to these changing needs by producing
innovative products and solution in order to maintain their competitiveness
(Delbecq & Mills, 1985). The rapid technological development that have enabled
this information age is also affecting the pace at which change is happening in
the world. The pace of change is rapidly increasing and in order for organizations
to be successful they need to keep up with this pace (Schwarz & Brock, 1998).

It seems that competition constantly increase and theories and methods, which
were triumphant yesterday, will tomorrow become outdated. New theories need
to be developed, for instance how to organize the businesses, new structures, re
branding, off shoring, new business models, new ways of dealing with the staff,
new technological changes, new trends etc.

These changes require new ways of managing people. A leadership style, which
might help to acclimatize to all these changes, is through transformational
leadership that can help companies overcome new challenges, explore new
opportunities and come up with strategies that will help them to be profitable and
grow while adapting to new changes. According to Andrew J. Dubrin (2010) a
transformational leader is the on who brings about positive, major changes in an
organization by moving group members beyond their self interests and towards
the good of the group organization and society. Transformational leaders change
their organization's culture by inspiring a sense of mission and purpose about the
importance of the group's work and stimulating new ways of thinking and problem
solving (Bass & Avolio, 1993). Transformational leaders inspire individuals within
an organization to work harder and to strive for the highest levels of performance
(Bass, 1985).

According to research conducted by Tarun Khanna, Jaeyong Song (2011) not

many people would have predicted two decades back that Samsung could
transform itself from a low-cost equipment manufacturer to a world leader in R&D,
marketing, and design. In Q1 of 2012, Samsung overtook Nokia as the world's
best selling cell phone brand (Wikipedia) which no one could have thought of five
to ten years back. Samsung realized that in a competitive world being innovative
is a must but being able to transform this innovation into growth that eventually
increases the firm’s market value is the main thing. Here is where
transformational leadership helps to explore and identify opportunities that will
take innovation to the next level which is exactly what Samsung did under
leadership of Lee Kun-Hee (Song, 2011).

7
 The main aim of every business is to attain profitability in all types of market
circumstances. Despite tough situation for economy these days where many
organizations giants of past e.g. Nokia, Sony and RIM are experiencing loss and
shutting down parts of business, there are few companies that seem not to be
impacted by this e.g. Apple, Google and Samsung. This may suggest that one
possible path of profitability and increasing growth is that every company leader
must review the company’s business models and its infrastructure and start
transformation process by inspiring people to unlock creativity, come up with new
ideas, innovation, ways of improved working and focused strategy within the
organization.

1.2 Problem Discussion

An understanding of the relationship between transformational leadership and
organizational performance is an important factor for developing effective
organizations. Finding ways to optimize the performance of people and hence,
the organization has been, and continues to be, a major concern for
organizational leaders. As globalization becomes more pronounced, the changes
may become even more dramatic as firms struggle to meet competition that only
a few decades ago did not even exist. Growth, sustainability, continuous increase
in profit and market share has been essential focus of most business companies.
However, the challenges of the current economic climate with fierce antagonism
means most business do not have enough monetary means and resources to
achieve this.

There are various researches indicating several ways by which industries can
attain growth and perform but still economic theory have been of little help in
pursuit of this goal. Prior research proved that leadership behavior impacts
organization business performance. However, the key constituents in the
process of how leadership behavior affects an organization that contributes
towards positive business performance have not been studied extensively. It
is important to understand the relationship and process of transformational
leadership behavior in producing positive organization results. Bass (1998)
pointed out that there is a need to understand the process by which
transformational leaders exert influence to reach their goals. The underlying
influencing processes for transformational and transactional leadership are
still vague, and they have not been studies in an efficient way (Shamir,
House, & Arthur 1993).

Hence the significance of this paper is to emphasize and establish a theoretical

framework in relation to the topic parameters, which could help redirect the focus
of most businesses in their quest for business growth while examining the
process of redefining new innovative strategies, motivating employees,
establishing new ways of ways of working that will help overcome existing market
challenges.

8
1.3 Aims and Objectives
The main purpose of this study is to determine the relationship of transformational
leadership to organizational performance by data collected through qualitative
and quantitative analysis done in Ericsson Saudi Arabia. We will try to investigate
how transformational leadership can have an impact on strategic management,
employee motivation & commitment and organization culture that when combined
together will significantly contribute positive business performance.

The study utilizes the Multi-factor Leadership Questionnaire developed by Bass

and Avolio in 1995 (MLQ 5-X Short Form) to measure the level of
transformational leadership in the selected company.

It will be investigated that how Transformational leadership is co related towards

strategic management and can help organizations formulate a strategy that will
contribute towards positive business performance while overcoming existing
challenges and staying ahead of business.

It will be investigated how Transformational leadership can have a positive impact

on organizational culture that will contribute towards positive business
performance especially in companies that are more then 100 years old and
comes with a strong cultural background.

It will be investigated how Transformational leadership can help employees to be

more committed and motivated to achieve desired results and goals especially
during times when competition is getting tough and sales are flat thus enabling
them to contribute towards positive business performance.

1.4 Research’s theoretical and practical relevance

Theoretical relevance

In spite of enormous amount of literature that deals with leadership and

management, I couldn’t find any research pertaining to Saudi Arabia which
explicitly penetrates the relation between transformational leadership and
business performance while utilizing strategic management, employee motivation
& commitment and organizational culture as key elements and processes used
by transformational leaders to help improve business performance.

9
 Strategic
Management

Organization
Culture
?? Effe
p act ct ?
?
Im
Motivation &
Commitment
Level of Business
Transformational Relationship ?? Performance
Leadership

Measured by
Measured by Yearly sales,
Composite score Orders booked
On MLQ & Operating
Income

Figure 1: Simple theoretical framework for the thesis

This research project submits new information regarding the importance of

transformational leadership style to the telecom vendors in Saudi Arabia market
and how it can have a positive impact on business performance in this tough,
challenging and evolving market. For the organizations performing well, this
information presents the opportunity to understand the importance of leader and
follower development to continue performing well, and for those not performing to
a similar level, the data is cause for reflection and an opportunity for improving
development policies or changing leadership styles. This study is a small start in
the right direction for companies that need leaders to continue to attract the right
people for sustainable performance.

Bass and Avolio (1993) have concluded that transformational leadership is

important and that leadership training of managers at all levels should become an
integral component of organizational education. A final component of this study is
its potential impact on the selection and hiring of Country Heads, Regional Heads
or CEOs (in case of Ericsson Saudi Arabia its Customer Unit Kingdom of Saudi
Arabia Head) and effectiveness of process of strategic management, organization
culture and employee motivation that when combined together positively
contributes towards growth and business performance. Organization Heads
typically have an enormous impact on the performance of organization operating
in a specific country, in a region or globally. Therefore the cost of making a
mistake in the selection, hiring, or promotion at such key positions can be
financially and operationally astounding.

Practical relevance

10
 There is no doubt that this subject is of great interest. In every organization the
importance of leadership skills is stressed. The studied area has a direct practical
relevance since it can change the searching profile when recruiting important
managerial positions like CEO, Regional Heads or Country Heads. Further,
transformational leadership skills might be more valued than formal education
while recruiting for such important positions. At last these leaders can use
strategic management, organization culture and employee motivation as effective
catalyst tools and processes that will contribute towards positive business
performance.

1.5 Case Company

I have selected Ericsson Saudi Arabia as my case. Since I have been working in
this company for last five years as Senior Solution Manager (in pre sales) part of
Engagement Practice Mobile Broadband, so getting access to the right people
and data was easy and I felt that doing such study will not only help me finish my
thesis easily but I can also present my findings to our customer unit head.

Ericsson is a world-leading provider of telecommunications equipment and

related services to mobile and fixed network operators globally. Over 1,000
networks in more than 175 countries utilize Ericsson’s network equipment and 40
percent of all mobile calls are made through Ericsson’s systems. Ericsson is one
of the few companies worldwide that can offer end-to-end solutions for all major
mobile communication standards and Ericsson is in business since 1876.

Ericsson started its operation in Saudi Arabia in 1977. Ever since it has been
growing and gaining the market share. When Ericsson started offering its wireless
telecom solution it was considered to be one of the best among very few telecom
supplier in the market having very little competition. But now new suppliers e.g.
Huawei, Cisco, Motorola, Nokia, Alcatel Lucent etc. have also emerged creating
tough competition in telecom world.

For decades Ericsson has been ruling in the world of telecom providers in Middle
East and especially in Saudi Arabia. They have been enjoying market share of
60% or more till 2007. Then came the 2007 global financial crisis, also known as
the Global Financial Crisis and 2008 financial crisis, is considered by many
economists to be the worst financial crisis since the Great Depression of the
1930s (Wikipedia). This crisis had a direct and indirect impact on telecom world
as well. Besides that other factors like declining operator revenues due to free
internet to internet calls, unlimited data services with fixed rates and emergence
of Chinese players in the marker have resulted in dramatic culture shift in industry
where business models and ways of working have changed and are having
undeviating impact on Ericsson revenue and market share. In many cases when
sales employees are faced with Chinese competitors knowing the fact that for a
particular product having similar features Chinese competitors will be offering it
for one fourth the price or in certain cases even free really demoralizes them
since they believe it’s a lost battle. As a result of above during 2008, 2009 and
2010 Ericsson CU KSA has lost local market share from 60% to 50% and sales
have been flat. (MU KSA Sales Report 2009, RMEA Sales Report 2010)

11
 Seeing that Global management decided to do overhaul of Ericsson Saudi Arabia
by brining some changes in Organization Structure and changing local
management while going through major process of transformation.
Transformation is the radical shift from one state of being to another, where the
organization totally changes its essential framework and looking for a new
competitive advantage and ways of working that affects the basic organization
capabilities (Hutt, Walker & Frank wick, 1995).

2 Change of local management and

organization structure in Ericsson Saudi
Arabia was part of Ericsson overall
reorganization that started in early 2010.
Ericsson management set out to restructure
the company to trim off fat and to help the
company function as a leaner and more
productive
2G nd entity
2 Generation byTelecommunication
of wireless assigning
transformational
3G rd leaders
3 Generation of wireless that can help
Telecommunication
company
CU
cope with the changing market
Customer Unit
conditions
KAM
with focus on business
Key Account Manager
performance,
KPI
growth, new market segments
Key Performance Indicator
and getting more close to customer. It was a
KSA Kingdom of Saudi Arabia
total transformation that took almost six
th
LTE Long Term Evolution (4 Generation of wireless Telecommunication)
months. In July 2010 Ericsson transformed
MU
from Market Unit
23 Market Units to 10 Regions across
the world
NS
as shown in Abbreviations
Net Sales

OB Orders Booked

OPI Operating Income

QoS Quality of Service

RMEA Region Middle East

RFP Request for Proposal

RFQ Request for Quotation

SMS Short Message Service

STC Saudi Telecom (Mobile Operator in Saudi)

12
 Wi-Fi Technology for Wireless Local Area Network

3 Appendix

4 Appendix A - Organization Structure-Figure

17: Ericsson New Regional Structure.
Regions are further divided into customer
units as show in Abbreviations

2G 2nd Generation of wireless Telecommunication

3G 3rd Generation of wireless Telecommunication

CU Customer Unit

13
KAM Key Account Manager

KPI Key Performance Indicator

KSA Kingdom of Saudi Arabia

LTE Long Term Evolution (4th Generation of wireless Telecommunication)

MU Market Unit

NS Net Sales

OB Orders Booked

OPI Operating Income

QoS Quality of Service

RMEA Region Middle East

RFP Request for Proposal

RFQ Request for Quotation

SMS Short Message Service

STC Saudi Telecom (Mobile Operator in Saudi)

Wi-Fi Technology for Wireless Local Area Network

14
5 Appendix
Appendix A - Organization Structure Figure 18: Region Middle East Structure
(Reporting to Regional Head).

6 With the new structure Ericsson Saudi

Arabia has moved from Market Unit (MU) to
Customer Unit (CU) part of Region, Region
Middle East (RMEA). New Structure of
Customer
2G nd
Unit
2 Generation Kingdom
of wireless of Saudi Arabia is
Telecommunication

shown
3G in Abbreviations
rd
3 Generation of wireless Telecommunication

CU Customer Unit

KAM Key Account Manager

KPI Key Performance Indicator

KSA Kingdom of Saudi Arabia

LTE Long Term Evolution (4th Generation of wireless Telecommunication)

MU Market Unit

NS Net Sales

OB Orders Booked

OPI Operating Income

QoS Quality of Service

RMEA Region Middle East

RFP Request for Proposal

RFQ Request for Quotation

SMS Short Message Service

STC Saudi Telecom (Mobile Operator in Saudi)

Wi-Fi Technology for Wireless Local Area Network

15
7 Appendix
Appendix A - Organization Structure - Figure 19: Customer Unit Kingdom of
Saudi Arabia Structure (Reporting to Customer Unit Head. Customer Unit Head
has overall responsibility of the customer unit and all sales teams report to him.
He/She also has functional reporting for the nine engagement practice heads for
each Customer Unit. Engagement Practice areas are divided into nine groups
responsible for sales, operations, managed services and strategic development.
Engagement Practice is the main backbone of the company responsible for
brining in revenue by selling solutions, products, operational services, and
managed services to telecom customers. CU KSA Head, all Local Engagement
Practice Heads and Key Account Managers (KAM) are part of Higher
Management Team.

Main objective of the new management was to bring in transformation that will
contribute towards positive business growth and regain the lost market share
specifically in Kingdom of Saudi Arabia.

16
 A company suffering from financial distress with lost market share against tough
Chinese rivals in a healthy Saudi Arabian market and also recently appointed
leadership with transformational qualities was an ideal case for me to study and
analyze if and how transformational leaders will have an impact on organization
performance and what are the key constituents used by them that will contribute
towards positive performance.

7.1 Thesis Structure

This thesis is structured into seven main chapters. The first chapter ‘Introduction’
introduces the research topic and gives background information, problem
discussion along with aim and objective of the thesis. The second chapter ‘theory’
consists of the background theory associated with the topical and how academic
world states around impact of transformational leadership on success of
companies. Hypothesis questions developed from theoretical framework will also
be presented in this chapter. The third chapter ‘Methodology’ will then describe
the research method and approach used e.g. It will be explained what research
methodology qualitative or quantitative approaches will be used and how data will
be collected and analyzed. The fourth and fifth chapter ‘results’ and ‘analysis’ will
show results from the survey and its detailed analyses. Hypothesis questions will
be answered as per analyzed data. The sixth chapter ‘conclusion’ provides the
final conclusion along with summary of analysis. The seventh chapter ‘limitation
and further research’ will provide recommendations for future work in this
research topic.

7.2 Limitations
The first limitation was the amount of data collected and sample size for this
study due to time constraints. In Ericsson CU KSA currently there are around 350
employees in Sales, Technical Sales, Services (Design, Implementation and
Local Support), Admin, Accounts, Supply, and HR. Ericsson CU KSA has 200
plus employees in Managed Services. Survey was sent to selective 58
employees who I knew personally and agreed to respond in time. Also interview
was only conducted with 8 employees from management.

The second limitation is the timing. This study is conducted by comparing data of
2010, 2011 and 2012. That was the time when economy started recovering from
effects of global financial crisis that started in 2007. Business has started
improving in 2011 and 2012. It will be interesting to see how Ericsson leadership
will perform in coming years.

Third limitation is that research is conducted on Ericsson as a vendor for a

specific country not overall Ericsson as a company. Also it may not be applicable
to other industry sectors.

Fourth limitation is that study assumes that people responding have good
understanding of CU KSA Head and management team in Ericsson. An
introductory paragraph has also been given in beginning of survey to introduce
transformational leadership along with its impacts on strategic management,
organizational culture, motivation & commitment and business performance. It
was assumed that introductory paragraph will provide enough guidelines to get
basic understanding of the topic being studied.

17
8 Theoretical framework
In this chapter different theories and the essential research which is related to the
transformational leadership in relation to Strategic management, Organization
Culture, Employee Motivation and Business Growth will be discussed.

8.1 Leadership and its impacts on organizational

performance
According to Dubrin (2010) leadership is the skill to inspire confidence and
support among people who are needed to accomplish organizational goals.
Effective Leadership deals with change, inspiration, motivation and influence
within an organization.

According to Northouse's (2007) Leadership is a process by which a person

influences others to accomplish an objective and directs the organization in a way
that makes it more cohesive and coherent. Leadership is a process whereby an
individual influences a group of individuals to achieve a common goal and
objective.

Marshall (2011) suggests that leadership is the ability to guide others, whether
they are colleagues, clients or patients, towards preferred outcomes. Leaders are
people who have clear idea of what they want to achieve and why. Leaders are
resource of confidence, assurance and guidance when we face, like today,
system complexity, financial shortfalls and poor distribution of resources.

According to Rowe (2007) your position as a manager, supervisor, lead, etc. may
give you the authority to accomplish certain tasks and objectives in the
organization. But this power does not make you a leader it simply makes you the
boss. Leadership differs in that it makes the followers want to achieve high goals,
rather than simply bossing people around (Rowe, 2007). Thus you get Assigned
Leadership by your position and you display Emergent Leadership by influencing
people to do great things. According to John. P. Kotter, a prominent leadership
theorist, managers (or bosses) must know how to lead as well as manage.
Without being lead as well as managed organizations face the threat of
extinction.

According to Dubrin (2010) for any company to be successful leadership is

needed at all levels in an organization. According to Dubrin (2010) a recent
analysis suggests that for improved business results to come about it will be
because managers below the “C Suite” (such as CEO, CFO and COO) take the
initiative and risks to drive the company in a different direction. Change needs to
come about from leaders at lower levels rather then relying exclusively on
leadership from top. This also means that leader on top has to be a true team
builder and very selective about his team. A leader needs to develop trust among
his team displaying loyalty to them by supporting their plans and decisions fully
with appropriate guidance.

18
 Organizational performance refers to ability of an enterprise to achieve
organization’s objectives such as high profit, quality product, large market share,
good financial results, and survival at pre-determined time using relevant strategy
for action (Koontz and Donnell, 1993). Organizational performance can also be
used to view how an enterprise is doing in terms of level of profit, market share
and product quality in relation to other enterprises in the same industry.
Consequently, it is a reflection of productivity of members of an enterprise
measured in terms of revenue, profit, growth, development and expansion of the
organization.

According to Dubrin (2010) different reach and studies have been conducted to
define a relationship between leadership and organizational performance. During
these research and studies a consistent relationship was found between who is in
charge and how well an organization performance as measured by variety of
indicators. Using different methodologies these studies arrived at the same
conclusion that changes in leadership are followed by changes in company
performance. According to Dubrin (2010) Statistical analyses suggest that the
leader might be responsible for somewhere between 15 and 45 percent of a
firm’s performance.

8.2 Transformational Leadership

Researchers have developed a number of leadership theories over the years.
Each model has its own pros, cons, assumptions & limitations. The transactional
and transformational theories of leadership developed by Burns (1978) and Bass
(1985) are one of the most popular leadership models. To understand
transformational leadership concept it is vital to understand the difference
between transactional and transformational leadership.

Transactional leadership is utilized when managers engage in transaction with

employees by explaining what is required and what they will receive if these
requirements are properly accomplished. Transactional leaders engage their
followers in a relationship of mutual dependence in which the contributions of
both sides are acknowledge and rewarded (Kellerman, 1984). Transactions can
be positive but also negative if objectives are not fulfilled.

Transformational leadership, on the other hand, occurs when there is active and
emotional relationship between leaders and followers (Jung, 2010). A
transformational leader recognizes and exploits an existing need or demand of a
potential follower and looks for potential motives in followers, seeks to satisfy
higher needs, and engages the full person of the follower. A lot of research has
been carried out on the concept of transformational leadership and this has even
been of more interest of research than any other type of leadership (Kelloway,
2002).

According to Dubrin (2010) transformational leader helps bring about major

positive changes by moving group members beyond their self interests and
towards the good of the group, organization or society. Leader often encounter
the need to transform organizations from low performance to acceptable
performance or form acceptable performance to high performance. To
accomplish their purpose the transformational leader attempts to overhaul
organizational culture or subculture and bring about positive organizational
change while leading toward success.

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 Research on transformational leadership suggests that it is a form of leadership
especially suited to fostering organizational change, such as the performance
reforms (Yukl, 2008). Significant empirical research has validated the existence of
transformational leadership while linking it to employee satisfaction and
performance (Bass and Riggio, 2006). Transformational leadership is centered on
the assumption that leaders can change follower’s beliefs, assumptions, and
behavior by appealing to the importance of collective or organizational outcomes.

Cumulatively, transformational leadership gives rise to a purposeful, committed,

and innovative approach to management and outcomes. More specifically,
transformational leadership is expected to shape employee behavior through
three psychological processes (Bass, 2003). First, transformational leaders direct
and inspire employees’ effort by raising their awareness of the importance of
organizational values and outcomes. This process requires leaders to create a
sense of vision, mission, and purpose among employees, providing confidence
and direction about the future of the organization. The appeal to broader goals
activates the higher-order needs of employees, encouraging them to transcend
their own self-interest for the sake of the organization and its clientele. Second,
transformational leaders inspire employees as a source of idealized influence,
functioning as a role model, and building employee confidence and pride in the
organization. Third, transformational leaders help followers achieve the mission
by intellectually stimulating them to challenge old assumptions about
organizational problems and practice.

By focusing the employee toward collective outcomes rather than self-interest,

and on innovation rather than continuity, transformational leadership creates a
climate where employees will be more willing to endure the costs of performance
information use, are more cognizant of its benefits, and are creative enough to
realize those benefits.

According to Bass (1990) that when companies are faced with turbulent markets,
short product life and technology getting obsolete before it is fully depreciated
that transformational leadership should be utilized at all levels in the firm.

Jung, Chow & Wu (2003) found that transformational leaders are able to
realign their followers’ values and norms, promote both personal and
organizational changes, and exceed their initial performance expectations.
Transformational leadership creates an emotional bond between leader and
subordinates through fulfillment and modification of their needs and values
which affect the quality of the subordinates’ relationship towards their
organization by influencing the behavior and attitudes of the subordinates.

8.2.1 How transformation takes place

Leaders like the transformational have the need to change an organizations

performance from low performance to high. In order to do those transformational
leaders need to make major changes in organization by overhauling organization
culture (Durbin, 2010). This is done by nine important ways. Every leader that
wants to transform the organization must follow these ways in order to be
successful.

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Raising people’s awareness is one of the way through which transformation takes
place. According to Dubrin, Daglish & Miller (2006) a Transformational leader
must show them that there is a problem. By pointing out the issues the followers
will think about that and consider changing it. A transformational leader enhances
awareness among his subordinates regarding the importance of their work and
the rewards that will be achieved and guides them on how these awards can be
attained.

Another way through which transformation takes place is by helping people look
beyond self- interest. According to Dubrin, Daglish & Miller, (2006) there are two
kinds of people in an organization. Those that work for the organizations and try
to make it a better place, and those who work for the organization but look only
for their best interest. The transformational leader must simply change their mind
so that they look beyond their interest only and see the organization as a whole,
where if improvement is made can benefit everyone not only just them.

Helping people search for self-fulfillment is another important way that leads to
transformation. According to Dubrin, Daglish & Miller, (2006) a transformational
leader makes sure that everyone is growing in the organization. This is important
because if people can grow they will perform better.

Another way through which transformation takes place is by helping people

understand the need for change. According to Dubrin, Daglish & Miller (2006) a
change and transformation is important and essential part of today’s world and
nowadays organizations depend on it. The transformational leader has to make
sure that everyone understands that change is good and that it will benefit
everyone in the organization. Team members must be given the emotional and
intellectual aid necessary for a successful transition. Resistance to change can
cause big problems for the organization, and it can put them into a risky position.

Another way through which transformation takes place is by investing managers

with a sense of urgency. According to Dubrin, Daglish & Miller (2006) In order to
transform the organization, the leader must assemble all the managers and make
sure that they understand his vision and support it. Transformations are achieved
by establishing a skillful team of managers who share the same vision as the
leader and are able to value the importance of change and help facilitate it.

Committing to greatness is another way through with transformation takes place.

According to Dubrin, Daglish & Miller (2006) the transformational leader adapts to
a great attitude and also makes sure that his followers follow the same. By doing
this leader ennobles human nature and strengthens society.

Another way through which transformation takes place is by adopting a long-

range perspective. According to Dubrin, Daglish & Miller (2006) Transformational
leader adopts a long range perspective. Transformational leader observes
organizational issues from a broad rather than a narrow perspective. Having a
future and optimistic way of thinking has a positive effect and will encourage
followers to be more focused towards goals.

Building trust is another essential way in the road leading towards transformation.
According to Dubrin (2010) another useful process for transforming a firm is to
build trust between leaders and group members. Transformational leaders lead
by building commitment and trust thus elevating followers to the greatest degree
possible so they are motivated to do more than they originally would (Bass &
Avolio, 1990).

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 Last but not the least important way through which transformation takes place is
by concentrating resources on areas that need the most change. According to
Dubrin (2010) Transformational leaders are very focused in determining the
situation and evaluating problems. They use a top down approach while
prioritizing the most critical problems to be solved first. A particular strategy is to
concentrate on most troubled areas that are most in need for a change and have
the biggest potential payoff. Transformational leader cannot take care of all
problems at once in a troubled organization.

8.2.2 Attributes of transformation leader

General understandings of transformational leadership are dominated by

acceptance of the four dimensions:

Idealized influence is about building confidence and trust and providing a role
model that followers seek to emulate (Bono & Judge, 2004). Leaders are
“admired, respected, and trusted” (Bass, Avolio, Jung & Berson, 2003).
Confidence in the leader provides a foundation for accepting (radical)
organizational change. That is, followers who are sure of the virtues of their
leader will be less likely to resist proposals for change from her/him. Clearly,
idealized influence is linked to charisma (Gellis, 2001). Charismatic leadership is
a characteristic of transformational leadership and depends on leaders as well as
followers for its expression (Kelly, 2003). The link between charismatic and
transformational leadership is clearest during times of crisis within an
organization such as when Lee Iacocca took over and resurrected the ailing
Chrysler Corporation in the 1970s and 1980s (Kelly, 2003).

Inspirational motivation is related to idealized influence but whereas charisma is

held to motivate individuals, inspirational leadership is about motivating the entire
organization to, for example, follow a new idea. Transformational leaders make
clear an appealing view of the future, offer followers the opportunity to see
meaning in their work, and challenge them with high standards. They encourage
followers to become part of the overall organizational culture and environment
(Kelly, 2003). This might be achieved through motivational speeches and
conversations and other public displays of optimism and enthusiasm, highlighting
positive outcomes, and stimulating teamwork (Simic, 1998). Martin Luther King’s
“I have a dream” speech and US President John F. Kennedy’s vision of putting a
man on the moon by 1970 stand out as exceptional examples of this
characteristic. Through these sorts of means, transformational leaders encourage
their followers to imagine and contribute to the development of attractive,
alternative futures (Bass, Avolio, Jung & Berson, 2003).

Intellectual stimulation involves arousing and changing followers’ awareness of

problems and their capacity to solve those problems (Kelly, 2003).
Transformational leaders question assumptions and beliefs and encourage
followers to be innovative and creative, approaching old problems in new ways.
They empower followers by persuading them to propose new and controversial
ideas without fear of punishment or ridicule (Stone, Russell & Patterson, 2003).
They impose their own ideas judiciously and certainly not at any cost (Simic,
2003).

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 Individualized consideration involves responding to the specific, unique needs of
followers to ensure they are included in the transformation process of the
organization (Simic, 1998). People are treated individually and differently on the
basis of their talents and knowledge and with the intention of allowing them to
reach higher levels of achievement than might otherwise have been achieved.
This might take expression, for example, through expressing words of thanks or
praise, fair workload distributions, and individualized career counseling,
mentoring and professional development activities. Besides having an
overarching view of the organization and its trajectory, the transformational leader
must also comprehend those things that motivate followers individually (Simic,
1998).

Together, the four main dimensions of transformational leadership are

interdependent; they must co-exist; and they are held to have an additive effect
that yields performance beyond expectations (Gellis, 2001; Kelly, 2003).

8.3 Strategic Management

According to Thompson and Strickland (1996) strategic management is a term
that spans enterprise wide strategy formulation, implementation, and evaluation.
Strategic management is the process of developing and executing a series of
competitive moves to improve the success of the organization both in the present
and in the future. The topic of strategic management has become vital to the
success or failure of organizations, especially now when the business
environment demands rapid changes, rapid monitoring, analysis and accurate
understanding. Strategic management together with strategic leadership provides
the vision, direction, the purpose for growth, and context for the success of the
corporation. It also initiates "outside-the-box" thinking to generate future growth.
Strategic leadership is not about micromanaging business strategies. Rather, it
provides the umbrella under which businesses devise appropriate strategies and
create value.

Strategic management is an on-going activity concerned with strategy

formulation, implementation and periodic evaluation in line with changes taking
place in both the internal and external environment. According to Thompson and
Strickland (1996), strategic management framework consists of five major tasks
as shown in Figure below:

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 Task11 Task 2 Task 3 Task 4 Task 5

Formulate Monitor,
Develop Implement
Set Strategy Evaluate,
Vision and
Goals & to Achieve and Take
and Execute
Objectives Goals & Corrective
Mission Strategy
Objectives Action

Revise as Revise as Improve/ Improve/ Recycle

Needed Needed Change Change as Needed

Figure 2: Five major tasks of Strategic Management

In this model the first task deals with developing strategic vision and mission,
followed by setting strategic objectives as the third task. The fourth task deals
with implementing and executing strategies followed by monitoring, evaluation
and taking corrective actions as the last task. In doing all five tasks, Thompson
and Strickland model also espouses the need to undertake review and revisions
as necessary.

The first task involves developing a strategic vision and business mission. The
mission statement explains what a company seeks to do and to become. It
defines a company’s business and provides a clear view of what the company is
trying to accomplish for its customers (Robert, 1993). On the other hand, a
strategic vision represents management’s view of the kind of company it is trying
to create and its intent to stake out a particular business position (Dobson and
Starkey, 1999). By developing and communicating a business mission and
strategic vision, management infuses the workforce with a sense of purpose and
a persuasive rationale for the company’s future direction. It serves as a sound
rationale for allocating resources (Certo, 2000). Above all, management should
ensure that the organization walk and talk their strategic direction statements.

The second task concerns the setting up of organizational goals and objectives.
Managerial statements of business mission and company direction are translated
into specific performance targets, something the organization’s progress can be
measured by. Objectives which are short-term, medium–term or long–term in
nature can be set to improve the financial performance of the organization, its
business position in the industry and makes it more intentional and focused in its
actions (Harrison, 1998). Short-term objectives spell out the immediate
improvements and outcomes management desires whilst long-term objectives
prompt managers to consider what to do now to position the organization to
perform well over the longer term. According to Thompson and Strickland (1996),
setting up challenging but achievable objectives (top – down or participative
approach) thus helps guard against complacency, drift, internal confusion over
what to accomplish and status quo organizational performance.

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The third task in strategic management is that of formulate a strategy. This task
requires that management correctly analyze the company’s internal and external
environment. Together with company’s strategic vision and business mission,
management devises sound strategies to achieve both the financial and strategic
objectives for the organization.

The fourth task involves strategy implementation and execution. This demands
figuring out what must be done to put the strategy in place, execute it proficiently
and produce good results. The strategic implementing task is the most
complicated and time-consuming part of strategic management. It cuts across
virtually all facets of managing and must be initiated from many points inside the
organization. Key aspects include as discussed by Thompson and Strickland
(1996):

 Building an organization capable of carrying out the strategy successfully

 Developing budgets that steer resources into those internal activities

critical to strategic success

 Establishing strategy – supportive policies

 Motivating people in ways that induce them to pursue the target objectives
energetically and, if need be, modifying their duties and job behavior to
better fit the requirements of successful strategy execution.

 Tying the reward structure to the achievement of targeted results

 Creating a company culture and work climate conducive to successful

strategy implementation

 Installing internal support systems that enable company personnel to

carry out their strategic roles effectively day in and day out

 Instituting best practices and programmers for continuous improvement

 Exerting the internal leadership needed to drive implementation forward

and to keep improving on how the strategy is being executed.

The fifth task involves monitoring and evaluating performance, reviewing new
developments and initiating corrective adjustments. Thompson and Strickland
(1996) advise that new circumstances call for corrective adjustments. Long-term
direction may need to be altered, the business redefined, and management’s
vision of the organization’s future course narrowed or broadened. Performance
targets may need raising or lowering in light of past experience and future
prospects (Cooper, 2005). Strategy may need to be modified because of shifts in
long-term direction, because new objectives have been set, or because of
changes in the environment. Lewis, Goodman and Fandt (2001) have observed
that realizing developments in the environment is one thing whilst taking the
appropriate response is another. Therefore, recognizing change is insufficient,
responding proactively is essential. This is where action minded and risk taking
leadership is required to take on issues head – on and not wish the challenges
away.

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 According to Johnson and Scholes (2004) leadership is the process of
influencing an organization (or group within an organization) in its efforts towards
achieving an aim or goal. However, required in today’s complex operating
environment is transformational leadership, which is leadership that inspires
organizational success by profoundly affecting follower’s beliefs in what an
organization should be, as well as their values, such as justice and integrity
(Certo, 2000).

8.4 Transformational leadership and Strategic Management

As organizations face a challenging, unstable, uncertain, demanding, challenging
and intolerant business environment, these issues outlined above by Thompson
and Strickland (1996) can only be realized by companies with sound
organizational leadership. The leadership that is critical here is transformational
leadership as opposed to transactional leadership. In transformational leadership,
leaders are expected to accurately interpret the goings on in the environment and
take appropriate actions to exploit the opportunities created by uncertainty. These
leaders are risk takers, love change, stay ahead of the change curve, redefine
their industries (Gibson, 1998), great communicators, team players, technology
masters, problem solvers, change makers and foreign ambassadors. They are
not the masters of the status quo as is the case with the transactional leaders.
This suggests that the role of leadership (transformational) in the strategic
management process is integrative and hence success or failure hinges on the
drivers of the organization.

According to Thompson and Strickland (1996) Empirical evidence seem to

suggest that organizations that follow the strategic management framework with
transformation leadership are high performers. As high performing organizations,
they initiate and lead in their respective industries. They don’t just react and
defend. They launch strategic offensives to out – innovate and out – maneuver
rivals and secure sustainable competitive advantage, then use their market edge
to achieve superior financial performance.

According to Gibson (1998), transformational leadership that is critical in facing

today’s challenges will not be content to sit back and let the cruise control do the
driving. These leaders will be looking forward, scanning the landscape, watching
the competition, spotting emerging trends and new opportunities, avoiding
impending crisis. They will be explorers, adventurers, trailblazers. Lewis,
Goodman and Fandt (2001), explains that some organizations have capitalized
on changes in the environment. Starbucks as a coffee peddler, Samsung as
mobile phone provider and Dell Computer as the provider of high quality, low cost
computer equipment, each of these companies have achieved success by
proactively addressing changing market conditions.

For the transformational leaders to be able to become great communicators,

team players, trouble-shooters and change makers, they ought to possess certain
competencies. These include environmental competence i.e. knowledge of the
dynamics of world economy, of major national markets, and of social and cultural
environments along with analytic competence to pull together a vast array of
information and data and to assemble relevant facts. Strategic competence helps
executives focus on the strategic or long-term requirements of their firms, as
opposed to short-term, opportunistic decisions and managerial competence,
which entails the ability to implement programs and organize effectively (Jeannet
and Hennessey, 1995).

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 Transformational leadership is the most effective strategic leadership style.
Transformational leaders develop and communicate a vision for the organization
and formulate a strategy to achieve the vision. Transformational leaders raise
their follower’s awareness of organizational issues and their consequences, they
create a vision of what the organization should be, build commitment to that
vision throughout the organization, and facilitate organizational changes that
support the vision (Certon, 2000).

This leads to the following hypothesis:

H1: Transformational Leadership can help organization achieve its goals by

having major impact on Strategic Management which in effect leads towards
positive business performance.

8.5 Organization Culture

According to Ravasi and Schultz (2006) organizational culture is a set of shared
mental assumptions that guide interpretations and actions in an organization by
following appropriate behavior in various situations. At the same time although a
company may have "own unique culture", in larger organizations, there is a
diverse and sometimes conflicting cultures that co-exist due to different
characteristics of the management team. Most organizational scholars and
observers recognize that organizational culture has a powerful effect on the
performance and long-term effectiveness of organizations.

Organizational culture is generally seen as a set of key values, assumptions,

understandings, and norms that is shared by members of an organization and
taught to new members as correct (Daft, 2005). A significant study was carried
out by Deshpande (1993), in which culture was defined as “a pattern of shared
values and beliefs that help individuals to understand organizational functioning,
and thus provide them with the norms for behavior in the organization”. O’Reilly
(1989) classified culture as control measures and normative orders that include
accepted attitudes, behaviors, risk-taking, rewards for change, receptiveness,
mutually accepted goals, autonomy, and the shared belief that organizational
action is required. Schein (1990) reveals that organizational culture consists of
two layers of concepts, namely visible and invisible characteristics. The visible
layer means external buildings, clothing, behavior modes, regulations, stories,
myths, languages and rites. The invisible layer means common values, norms,
faith and assumptions of business organization members.

27
8.6 Transformational leadership and Organization Culture
Bass and Avolio (1993) have argued that leadership and culture are so well
interconnected that it is possible to describe an organizational culture
characterized by transformational qualities. The literature on transformational
leadership makes an attempt to approach leadership as a social process by
putting emphasis on how leaders stimulate their followers to transcend their own
self-interests for the sake of their team and the larger organization.
Transformational leaders are typically described as those who inspire their
followers to adopt goals and values that are consistent with the leader’s vision.
According to Bass (1985), transformational leaders do work within the culture as
it exists but are primarily concerned with changing organizational culture. Bass
proposes that transformational leadership promotes a working environment
characterized by the achievement of high goals, self-actualization, and personal
development. Similarly, Bass and Avolio (1993) suggested that transformational
leaders move their organizations in the direction of more transformational
qualities in their cultures, namely, accomplishment, intellectual stimulation, and
individual consideration, therefore, suggesting that transformational leadership
has a direct effect on culture. Block (2003) found that employees who rated their
immediate supervisor high in transformational leadership were more likely to
perceive the culture of their organization as adaptive, involving, integrating, and
having a clear mission.

Burns (1978) described transformational leadership as a process in which

‘leaders and followers raise one another to higher levels of morality and
motivation’. Transformational leaders seek to raise the consciousness of
followers by appealing to higher ideals and moral values such as liberty, justice,
equality, peace, and humanitarian, and not to baser emotions such as fear,
greed, jealousy, or hatred. Research by Krishnan (2001) suggests that superior
performance is possible only through stimulating and motivating followers to
higher levels of performance through transformational leadership. Superior
performance is possible only by transforming followers’ values, attitudes, and
motives from a lower to a higher plane of arousal and maturity.

Most organizational scholars and observers now recognize that organizational

culture has a powerful effect on the performance and long-term effectiveness of
organizations. Empirical research has produced an impressive array of findings,
demonstrating the importance of culture to enhancing organizational performance
(Tice and Beyer, 1993). Kotter and Heskett (1992) defined culture as a critical
factor in long-term financial success.

This leads to the following hypothesis:

H2: Transformational Leadership can help organization change their unique

culture in the direction of more transformational qualities that help them achieve
their goals which in effect leads towards positive business performance.

8.7 Employee Motivation & Commitment

Employee motivation or commitment towards its organization is an important
issue that has been and will always be of great importance for organizations.
Organizations are always looking for motivated and committed human resource in
order to achieve its strategic objectives.

28
 As noted by Morris and Sherman (1981) Organizational commitment is an
indicator of employee’s performance & turnover. It helps organizations to attain its
goals as it is the psychological bond between the individuals and organization. It
is the relative strength of an employee’s identification with and involvement within
an organization (Mowday 1982 and Porter, 1974). Allen and Meyer (1997) define
affective commitment as the employee’s emotional attachment to identification
with and involvement in the organization.

Motivation has been defined as the psychological process that gives behavior
purpose and direction (Kreitner, 1995). The imperative need to discover,
comprehend and implement employee motivation has become a principal
concern for organizations, managers and even first line supervisors because
employee motivation has been, and will be the deciding factor in work
performance, success or failure of an organization (Samuel and Chipunza, 2009).
Wiley (1997) suggests that ensuring the success of an organization requires
employers who understand the importance of employee motivation. Such
understanding is essential to improving productivity. Thus, motivating employees
is one of the most important management functions. Helliegel (2001) define
employee motivation as “the force acting on or within a person that causes the
person to behave in a specific, goal-directed manner". Motivation is very
important to utilize the full potential of employees so as to ensure quality products
and services and consequently the success of the organization as a whole.

8.8 Transformational leadership and Employee motivation &

commitment
A transformational leadership behavior called inspirational motivation has been
empirically linked to a range of outcomes such as extra effort, ethical behavior,
learning orientation, and project success by Banerji and Krishnan (2000). In
addition Densten (2002) argues that extra effort has important significance for the
validity of inspirational motivation because this outcome has been used to confirm
the “augmentation effect” of inspirational motivation. This effect represents the
unique variance in the ratings of performance, which is above and beyond that
accounted for by transactional leadership. In other words, transformational
leadership accounts for high performance through its inspirational motivation
behavior unlike transactional leadership. In concurrence, Bass and Avolio (1999)
point out that several studies have also identified a high correlation between
inspirational motivation and extra effort.

29
 Shirbagi (2007) mentioned that there is positive relationship between leadership
and overall organizational commitment. Williams and Hazer (1986) states that
Leadership has positive and significant impact on organizational commitment.
Bass (1985) proposed two types of leadership style i.e. transformational
leadership and transactional leadership styles. Transformational leadership has
shown significant and positive relationship with organizational commitment while
transactional leadership does not positively and significantly correlates with
organizational commitment (Lee, 2004).Transformational leaders have great
ability to influence organizational commitment by promoting the values which are
related to the goal accomplishment, by emphasizing the relation between the
employees efforts and goal achievement and by creating a greater degree of
personal commitment on part of both follower’s as well as leaders for the
achievement of ultimate common vision, mission and goals of the organization
(Shamir 1998). Transformational leaders motivate subordinates to accomplish
more by focusing on their values and provide guidelines for aligning their values
with the values of the organization (Givens, 2008).

Bass (1998) describes that there are further four facets of transformational
leadership–charismatic leadership, inspirational motivation, intellectual
stimulation and individualized considerations which are interrelated to each other.
Bass (1985) found that Charismatic leadership is further divided into two
components on the basis of its attributes one is charisma and other is idealized
influence. Inspirational leaders motivate their followers. They influence their
commitment and loyalty towards organization by giving their actions a particular
direction, building self-reliance and rousing their faith in grounds. Idealized
influence makes the followers aware of their importance toward work and
provokes keenness, thrill, emotional attachment and commitment toward
common goals. Individualized consideration helps out the employee by mounting
and educating them. He defines that employees are encouraged by focusing on
their logical deliberation and confronting assumptions in intellectual stimulation.
Davenport (2010) found that personality type and Leadership style both are
important predictors of organizational commitment. He found that employees with
internal locus of control are more committed towards their organizations. Similarly
employees who follow transformational leaders are also more committed towards
their organizations.

This leads to the following hypothesis:

H3: Transformational Leadership has a positive impact on employee commitment

and motivation which in effect leads towards positive business performance.

8.9 Business Growth & Performance

Performance is the competency of an organization to transform the resources
within the firm in an efficient and effective manner to achieve organizational goals
(Daft, 1998). Organizational performance can be explained from several different
kind of perspectives and there are several aspects which mutually be considered
to define organizational performance comprehensively. According to Daft (1998),
‘profitability reflects the overall performance of for-profit organizations. Profitability
may be expressed in terms of net income, earnings per share, or return on
investment’. Employee moral, motivation, market share and social legitimacy can
be considered as part of the overall performance in the highly competitive
business world demanding more corporate social responsibility with satisfactory
financial rewards.

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 The Business growth is used to describe a development process of an Enterprise
from small to big and from weak to strong. Enterprise growth is the development
process that enterprise keeps the tendencies of balanced and stable growth of
total performance level including output, sales volume, profit and asset gross or
keeps realizing the large enhancement of total performance and the stage
spanning of development quality and level (Sun, 2004).

According to Merchant & Van der Stede (2007) the most widely publicized
combination of Performance measurement system of recent vintage is Kaplan
and Norton’s Balanced Scorecard that proposes a combination of short term
measures and leading indicators framed into the following four perspectives:

1. Financial Perspective: How do we look to shareholders? Examples of

measures in this category include operator income and Return on
Investment.

2. Customer Perspective: How do our customers see us? Examples of

measures in this category include on-time delivery and percent of sales
from new products.

3. Internal Perspective: What must we excel at? Examples of measures in

this category include cycle time, yield and efficiency.

4. Innovation and learning perspective: Can we continue to improve and

create value? Examples of measures in this category include time to
develop next generation, new product introductions vs. competition.

8.10 Transformation leadership and Business Growth &

Performance
According to Dubrin (2010) more positive contribution to business performance
and growth came from behaviors associated with transformational leadership. M.
Howell and Bruce. J. Avolio investigated the relationship of transformational
leadership to business unit performance as part of large study. They collected
sample from seventy eight managers from the highest four levels of management
in large Canadian financial institutions. They developed a scale to measure three
aspects of transformational leadership: Chrisma, intellectual stimulation, and
individual consideration. The measure of business unit performance represented
the degree to which the manager reached goals for the year, calculated in terms
of the percentage of goal met. Each goal was measured against criteria for
expected, superior and outstanding performance. Data analysis revealed that
leaders who displayed more individualized consideration, intellectual stimulation,
and charisma positively contributed to business unit performance.

A field study conducted by Howell and Avolio (1993) found that transformational
leadership has a significant impact on business unit performance and is positively
related towards it. Business unit performance was defined in terms of percentage
of targeted goals. Howell and Avolio (1993) examined that transformational
leadership behavior predicted consolidated-unit performance over a 1-year period
while considering support for innovation as a moderator. Their study analyzed
stock price change over five years and examined the relationship that seems to
exist between transformational leadership and this objective organizational
performance measure. Howell and Avolio (1993) also found that charismatic,
intellectually stimulating, and individually considerate leadership would positively

31
and directly relate to the percentage of goals achieved in the leader’s unit over
the 1-year period being studied. They concluded that the leaders had positive
impacts on unit performance through influence on followers by inspiring followers
to accomplish more difficult objectives, to approach and problem solve from new
and various perspectives, and through helping them develop themselves to
higher levels of capabilities (Howell & Avolio, 1993).

This leads to the following hypothesis:

H4: Transformational Leadership has a positive impact on Organizational

Performance and growth

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9 Methodology
The research methodology discussed in this section presents all the steps that
were performed in order to achieve the objectives of this study.

9.1 Research approach

Researchers in the field of organizational theory and leadership are usually
divided in two camps, one that use qualitative research methods and the other
camp uses a quantitative method to measure.

Qualitative researchers aim to gather an in-depth understanding of human

behavior and the reasons that govern such behavior. The qualitative method
investigates the why and how of decision making, not just what, where, when.
Hence, smaller but focused samples are more often needed than large samples.

Quantitative research refers to the systematic empirical investigation of social

phenomena via statistical, mathematical or computational techniques.
Quantitative researcher asks a specific, narrow question and collects numerical
data from participants to answer the question. The researcher analyzes the data
with the help of statistics. The researcher is hoping the numbers will yield
an unbiased result that can be generalized to some larger population.

Because of the complexity to study such an intangible phenomenon as

leadership, some researchers suggest the best method to catch organization and
leadership is to combine the two methods, thus use both qualitative and
quantitative data. This method is preferred by many consultants and in practice
(Peter/Waterman and Deal/Kennedy). According to Yin (2008) researches have
given increasing attention to “mixed methods research” so I decided to use a mix
of both techniques. Bryman (1988) argued for a `best of both worlds' approach
and suggested that qualitative and quantitative approaches should be combined.

In order to carry out this study a mix of qualitative and quantitative approach has
been chosen.

There are a number of methods available to the researcher for collecting data.
The commonly used data collection methods can be divided into three basic
types: Personal interview, Telephonic Interview and Survey Questionnaires.

Personal Interviews and Telephonic are associated with qualitative data while
Survey questionnaires are usually associated with quantitative data. In order to
benefit from both qualitative and quantitative approaches all three methods of
data collection were used.

Besides interviews and Surveys Business Performance Indicators were also

analyzed to compare (quarterly and yearly) performance of the company once
new management was introduced.

9.2 Data collection

In order to get answers to questions and hypothesis that were raised as a result
of review of theoretical literature, data collection was the utmost important stage
of this research.

33
 First method used for collection of substantial data for this project paper was a
written structured questionnaire. After going through theoretical literature and
hypothesis that were mentioned in Chapter 2 a set of questionnaire was prepared
that was the baseline for all three forms of data collection i.e. Personal Interviews,
Phone Interviews and Survey Questionnaire.

Copies of the questionnaire were distributed to the respondents with instructions

on how to fill them out. Altogether, 58 survey forms were distributed, 49 were
returned filled out, giving a return rate of 84%. The reason for the high return rate
was that I personally visited most of the employees in Riyadh Office (Ericsson
CUKSA HQ), explained and convinced the participants on the purpose of the
research and the need for participation. Having spent five years in Ericsson Saudi
Arabia also helped me for the cause since I personally knew most of the
employees. Questionnaire was sent to all CU KSA Heads and employees
working under them.

Second method of data collection was personal interviews. I personally took time
from team members of higher management (CU Heads), Key Account Managers
(KAM) reporting to CU KSA head Ali Eid.

Third method was use of Ericsson CUKSA Yearly and Quarterly Performance
Report.

9.3 Survey Methods

9.3.1 Questionnaire

The Questionnaire was properly structured into six sections:

1. Section A:

This section captures the background details of the respondents such as

gender, age, ethnicity, designation, employment and working experience.

2. Section B:

This section evaluates Ericsson leadership (CUKSA Head and all local
Engagement Practice Heads) as Transformational leadership and its
impact on Strategic Management, Organization Culture, Motivation &
Commitment and Business Performance.

Evaluate if Strategic Management is in place where CU KSA Management

has clear objectives and a strategy to achieve its objective with firm
implementation and evaluation. Evaluate how Strategic Management and
Engagement is driving Customers (Operators) to generate revenue using
new business models. Evaluate how Ericsson CUKSA Management is
helping formulating Strategic Management to keep up with competitive
market and beating Chinese competitors.

Evaluate that Ericsson being 100+ years old company having a strong
Organizational Culture requires a change in Organization Culture and how
the new change will have a positive impact on Organizational
Performance. How Ericsson CUKSA Management is helping evolve
Organizational Culture to meet new market demands and trends.

34
 Evaluate how Ericsson CUKSA Management is having an impact on
Commitment and Motivation of employees leading to positive performance
of company especially in times where competition is tough, demanding
and very competitive.

Evaluate how Ericsson CUKSA Management is having an impact on

Business Growth and Organization Performance.

Bass (1985) as well as Conger and Kanungo (1987) started developing

theoretical models and instruments for the empirical research on transformational
and charismatic leadership. Diverging from the religious and mystic aspects as
well as superhuman extraordinary capabilities of singular “heroes” of the first
charisma theories (Weber 1922/1976), they changed the former concepts
towards a more behavior orientated and pragmatic perspective. Although there
currently exists different theoretical frameworks and instruments a relative
consensus concerning the core facets of transformational and charismatic
leadership behavior has been found in the meantime. There has been a
consensus (Bass 1999, Conger & Kanungo, 1998) concerning the core facets of
transformational leadership: vision, inspiration, role model, support of personal
growth, trust and consideration of followers needs.

Below table shows distribution of questions as per core facets of transformational

leadership that have been used in the questionnaire:

Core Facets of Transformational Question Number

Leadership

Vision 1-4

Inspiration 5-10

Role Model 11

Support of Personal Growth 12-17

Trust 18-22

Consideration of Followers Needs 23-25

Transformational leadership styles were measured by using The Multifactor

Leadership Questionnaire (MLQ-5x/Short Form) (Bass & Avolio, 1995). The
Multifactor Leadership Questionnaire measures a broad range of leadership
types from passive leaders, to leaders who give contingent rewards to followers,
to leaders who transform their followers into becoming leaders themselves. The
MLQ identifies the characteristics of a transformational leader and helps
individuals discover how they measure up in their own eyes and in the eyes of
those with whom they work. MLQ-5X in its original form assesses both
transformational and transactional leadership. For purpose of this study only
Transformational Leadership questions have been used.

Below table shows distribution of questions related to respective hypothesis

described in theory section that have been used in the questionnaire:

35
 Research Hypothesis Question Number

Transformational Leadership and its 26-36

impact on Strategic Management

Transformational Leadership and its 37-40

impact on Organizational Culture

Transformational Leadership and its 41-50

impact on Employee Motivation &
Commitment

Transformational Leadership and its 51-55

impact on Business Growth &
Performance

Strategic Management questions were formulated based upon the work done by
Thompson and Strickland (1996).

Employee’s commitment was measured through some items taken from

commitment questionnaire of Allen and Meyer (1996).

Based upon the work of Podsakoff (1990) questions were developed to see
impact of Transformational leadership on Organization culture.

Business Unit performance questions were developed based upon information

provided in Dubrin (2010).

9.3.2 Interview

In order to improve quality of research personal interviews were conducted from

all CU KSA heads Key Account Managers (KAM for STC and Mobily) that have
functional reporting to CU KSA Head Ali Eid and are part of Higher Management
Team. All CU KSA Heads have the day-to-day responsibilities of managing a
company they hold specific executive powers conferred onto them with and by
authority of Regional Middle East Head Anders Lindbald.

In-depth interviewing, as Kvale (1996) observed, attempts to understand the

world from the interviewees’ points of view, unfold the meaning of their
experiences and uncover the lived world prior to the scientific explanation. It
can thus help uncover the meanings and perceptions of the team leaders and
team members towards the definition of Transformation leadership.

A list of interview questions is provided in Section 16.3. Each interview

session lasted between 40 minutes to 60 minutes. All interviews were audio-
taped and verbatim remarks were obtained through transcription.

36
 In total eight persons were interviewed on the quality and comprehensibility of the
questionnaire. It was Six from Engagement Practice (Local Engagement Practice
Heads) and Two from Account Team (Key Account Managers for STC and
Mobily). Three Engagement Heads out of nine were on business trip or annual
leave. Idea was to meet higher management in person to get a better idea of CU
KSA Head and the team itself and to compare if employees and management are
on same page in terms of strategic management, motivation, organization culture
change and positive business performance with emergence of new segments and
revenues for operators.

9.3.3 Yearly and Quarterly Performance Reports and Score Cards

Income statement and cash flow for year 2009, 2010, 2011 and 2012 (Q1) were
used. Focus was CU KSA in RMEA region. Net Sales, Ordered Booked and
Operating Income were compared year to year. Score cards will also be used to
compare performance.

9.4 Data Analysis Method

The data analysis involved two stages in order to analyze both qualitative data
and quantitative data. Qualitative data analysis was done using in-depth
interviews along with yearly performance reports and Quantitative data analysis
was done using data obtained from questionnaire.

9.4.1 Qualitative Data obtained through interviews and Yearly Performance

Reports

The interviews audios and the remakes taken during interview were examined
thoroughly to uncover the hypothesis questions. From the in-depth interviews
it will be determined if CU KSA head and Management have the
transformational leadership abilities and are having positive impact on
strategic management, motivation, organization culture change and positive
business performance with emergence of new segments and revenues for
operators.

Data was also obtained through yearly performance reports. Due to confidentiality
of data only percentages were used to compare performance instead of showing
the actual value.

9.4.2 Quantitative data obtained through questionnaire

The survey responses were captured on a Microsoft Excel Spreadsheet in form of

a data matrix. From the data certain fields were codified (i.e. allocated a score of
0,1,2,3 or 4). The Excel functions of ‘AVERAGE’ (to calculate Mean), ‘MEDIAN’
(to calculate Median) and ‘STDEV’ (to calculate Standard Deviation) were used
for Statistical analysis. ‘Data Analysis’ function of Excel was used to calculate
correlation between Transformational Leadership and Strategic Management,
Organizational Culture, Motivation & Commitment and Business Performance.
Once Correlation coefficients are calculated then to check if it is statistically
significant or what the value of its 95% confidence interval is, Significance of
correlation value will be calculated using below formula:

37
 Where ‘r’ is the correlation coefficient and n is number of samples.

9.5 Validity and reliability

The validity of this research requires that the questions measure exactly what it is
required to measure. By including a short explanation of transformational
leadership, its attributes, its impact on performance, strategic management,
motivation and organization culture I am confident that the validity of the research
has been proven.

Reliability means that the information filled in the questionnaire may not present
the actual facts e.g. someone is too lazy to read the question and answer it
properly or someone had a bad day etc. There is nothing much one can do about
this problem but in order to mitigate this problem one week time was given to
everyone to fill in the survey and importance of survey was also presented in the
beginning.

The use of qualitative interviews contributed to the reliability of the research.

When it comes to business performance all yearly and quarterly sales report are
present on Ericsson internal CU KSA website and this is more then reliable.

38
10 RESULTS
Following methodology and data analysis explained in chapter 3, this chapter will
present the results and findings based upon interview, surveys and economic
results.

10.1 Survey Results

10.1.1 Respondents Background Statistical Results – Survey Section 1

Altogether, 58 survey forms were distributed, 49 were returned filled out, giving a
return rate of 84%. Out of these 49 eight were line managers/Heads and forty one
were their sub ordinates. Survey was sent to all respective EPs and Account
teams show in Appendix A - Organization Structure in Figure 20: Engagement
Practice Region Middle East (Reporting to Engagement Practice Head).

The age ranges of the majority of the respondents were those between the age of
30 and 39 with 53%. Second majority was age range between 20 and 29 with
37%. Third was age range between 40 and 49 with 8% while 50 plus was only
2%.

In terms of gender, the percentage of males who answered the questionnaire was
92% with 45 respondents while the females were 8% with 4 respondents.

The numbers of those who are team leaders or managers are in the age range of
20 and 29 are 1, 30 and 39 are 5 and 40-49 are 2. All are male managers since
we have only recently started hiring females in Saudi. This has nothing to do with
management but more of a cultural thing where females are only encouraged to
work in female dominated environment e.g. schools, women universities, ladies
malls and hospitals.

In terms of contract type 35 were local employees making it 71%. 6 were LTA
making it 12%. 6 were on contract making it 12% while 2 were on STA making it
4% only. Details of contract types can be found in Appendix D - Contract Types.

In terms of work experience 33 were having experience in range of 5-10 with

67%, 8 were with 10+ years of experience with 16%, 6 were with 2-5 years
experience with 12% and 2 where with less than 2 years experience with 4%
only.

Above collected data shows the diverse nature of response and some form of
balance in the representation of age, work position, contract type and work
experience. While in terms of gender it’s mostly males. Detailed reports related to
survey section 1 can be found in Appendix E – Detailed Data Description
(Respondent Details)

10.1.2 Ericsson CUKSA Management as Transformational Leadership and

its impact Statistical Results – Survey Section 2

39
Total number of question related to attributes of Transformational leadership
along with total points (4 being a max per question), scored points, percentage,
means, standard deviations, and Skew are shown in table below:

QUESTION AREA

PERCENTAGE
EVALUATION

QUESTION #

STANDARD
DEVIATION
MEDIAN
POINTS
SCORE
TOTAL

SKEW
MEAN
Question 1 196 147 75% 3.00 3.00 0.913 -0.514
Question 2 196 134 68% 2.73 3.00 0.785 -0.295
Question 3 196 144 73% 2.94 3.00 0.827 -0.114
Vision Question 4 196 123 63% 2.51 3.00 0.938 -0.267
Question 5 196 135 69% 2.76 3.00 0.925 -0.140
Question 6 196 146 74% 2.98 3.00 0.803 -0.465
Attributes of Transformational Leadership

Question 7 196 134 68% 2.73 3.00 0.811 -0.203

Question 8 196 142 72% 2.90 3.00 0.823 -0.273
Question 9 196 150 77% 3.06 3.00 0.747 -0.725
Inspiration Question 10 196 137 70% 2.80 3.00 0.889 -0.134
Role Model Question 11 196 136 69% 2.78 3.00 0.896 -0.438
Question 12 196 142 72% 2.90 3.00 0.797 -0.327
Question 13 196 144 73% 2.94 3.00 0.747 0.101
Question 14 196 145 74% 2.96 3.00 0.789 -0.191
Question 15 196 138 70% 2.82 3.00 0.834 -0.312
Question 16 196 144 73% 2.94 3.00 0.827 -0.344
Support for Personal Growth Question 17 196 135 69% 2.76 3.00 0.778 0.188
Question 18 196 141 72% 2.88 3.00 0.904 -0.455
Question 19 196 138 70% 2.82 3.00 0.882 -0.383
Question 20 196 147 75% 3.00 3.00 0.736 0.000
Question 21 196 138 70% 2.82 3.00 0.858 -0.248
Trust Question 22 196 132 67% 2.69 3.00 0.847 -0.215
Question 23 196 143 73% 2.92 3.00 0.786 -0.121
Question 24 196 136 69% 2.78 3.00 0.896 -0.257
Consideration of followers needs Question 25 196 135 69% 2.76 3.00 0.879 -0.258

Table 1: Statistical Results for Transformational Leadership attributes-

Percentage, Mean, Median, Standard Deviation and Skew

Below figure shows the cumulative percentage distribution result for

transformational leadership attributes for CU KSA Head and CU KSA
Management.

80% 72% 70%72% 73% 72%

69% 69% 67% 69%71%
70% 63%
60%
50%
Management
40%
CU KSA Head
30%
20%
10% 0%
0%
Support for
Inspiration

Trust
Vision

Consideration
Role Model

of followers
personal
Growth

needs

Figure 3: Transformational leadership attributes – CU KSA Head & CU KSA

Management

40
As per above table and figure Ericsson CU KSA Head and Management show
considerable sign of Transformational leadership. On all attributes CU KSA head
scored slightly higher then management. On vision CU KSA Head scored 72%
while CU KSA Management scored 63%. On Inspiration CU KSA Head scored
72% while CU KSA Management scored 70%. On role model CU KSA Head
scored 69%. No data was collected for CU KSA Management on this attribute.
On Support for Personal Growth CU KSA Head scored 73% while CU KSA
Management scored 69%. On trust CU KSA Head scored 72% while CU KSA
Management scored 67%. On Consideration of followers need CU KSA Head
scored 71% while CU KSA management scored 69%. The mean in all attributes
was between 2.5 till 3.0 (out of 4) showing considerable sign of transformational
leadership. Similarly smaller standard deviations (less than 1) are providing a
greater confidence in the data provided.

Total number of question related to Strategic Management, Organization Culture,

Motivation & Commitment and Business Performance along with total points (4
being a max per question), scored points, percentage, means, standard
deviations, and Skew are shown in table below:
QUESTION AREA

PERCENTAGE
EVALUATION

QUESTION #

STANDARD
DEVIATION
MEDIAN
POINTS

SCORE
TOTAL

SKEW
MEAN
Question 26 196 152 78% 3.10 3.00 0.743 -0.167
Question 27 196 141 72% 2.88 3.00 0.832 -0.440
Question 28 196 139 71% 2.84 3.00 0.773 -0.269
Question 29 196 138 70% 2.82 3.00 0.858 -0.248
Question 30 196 147 75% 3.00 3.00 0.707 0.000
Question 31 196 139 71% 2.84 3.00 0.898 -0.205
Question 32 196 144 73% 2.94 3.00 0.689 0.080
Question 33 196 133 68% 2.71 3.00 0.816 -0.376
Question 34 196 142 72% 2.90 3.00 0.797 -0.327
Transformational Leadership Impact

Question 35 196 142 72% 2.90 3.00 0.848 -0.228

Strategic Management Question 36 196 146 74% 2.98 3.00 0.750 -0.276
Question 37 196 146 74% 2.98 3.00 0.829 0.039
Question 38 196 145 74% 2.96 3.00 0.815 -0.164
Question 39 196 126 64% 2.57 3.00 0.577 -0.290
Organizational Culture Question 40 196 129 66% 2.63 3.00 0.487 -0.568
Question 41 196 148 76% 3.02 3.00 0.777 -0.314
Question 42 196 142 72% 2.90 3.00 0.770 -0.106
Question 43 196 140 71% 2.86 3.00 0.890 -0.449
Question 44 196 139 71% 2.84 3.00 0.850 -0.311
Question 45 196 131 67% 2.67 3.00 0.774 -0.473
Question 46 196 141 72% 2.88 3.00 0.754 0.208
Question 47 196 148 76% 3.02 3.00 0.750 -0.034
Question 48 196 138 70% 2.82 3.00 0.858 -0.248
Question 49 196 151 77% 3.08 3.00 0.759 -0.139
Motivation and Commitment Question 50 196 144 73% 2.94 3.00 0.689 0.080
Question 51 196 141 72% 2.88 3.00 0.857 -0.378
Question 52 196 150 77% 3.06 3.00 0.747 -0.101
Question 53 196 154 79% 3.14 3.00 0.816 -0.513
Question 54 196 118 60% 2.41 2.00 0.610 0.079
Business Performance Question 55 196 142 72% 2.90 3.00 0.848 -0.228

Table 2 : Statistical Results for Transformational Leadership impact - Percentage,

Mean, Median, Standard Deviation and Skew

Below figure shows the cumulative percentage of transformational leadership

impact on Strategic Management, Organization Culture, Motivation &
commitment and Business performance in CU KSA.

41
 Transformational Leadership Impact

74% 73%
72% 72%
72%
70%
68%
Cumulative Percentage
66% 65%
64%
62%
60%
Strategic Organization Motivation & Business
Management Culture Commitment Performance

Figure 4: Transformational leadership impact on Strategic Management,

Organizational Culture, Motivation & Commitment and Business Performance in
CU KSA

As per above table Ericsson CU KSA Head and Management are having
considerable impact on Strategic Management, Organizational Culture,
Motivation & Commitment and Business Performance. Having positive impact on
strategic management CU KSA Head and Management scored an overall score
of 72%. Having a fairly positive impact on Organizational Culture CU KSA Head
and Management Scored an overall score of 65%. Having a positive impact in
raising motivation and commitment of employees CU KSA Head and
Management scored an overall score of 73%. Having a positive impact on
Business Performance CU KSA Head and Management Scored an overall score
of 72%. The mean in all questions was between 2.4 till 3.14 (out of 4) showing
considerable impact of leadership in all areas. Similarly smaller standard
deviations (less than 1) are providing a greater confidence in the data provided.

Detailed data related to survey section 2 can be found in Appendix F – Detailed

Data Description (Transformational Leadership and its Attributes) and Appendix
G – Detailed Data Description (Transformational Leadership and its impact)

Table below shows correlation of Transformational leadership towards Strategic

management, Organizational Culture, Motivation & Commitment and Business
Performance that has been calculated using data analysis tool in excel using
questionnaire data.

CORRELATION Transformational Strategic Organization Motivation & Business

MATRIX Leadership Management Culture Commitment Performance
Transformational Leadership 1.000
Strategic Management 0.900 1.000
Organization Culture 0.747 0.654 1.000
Motivation and Commitment 0.848 0.816 0.730 1.000
Business Performance 0.667 0.725 0.650 0.694 1.000

Table 3 : Correlation Matrix- Correlation between Transformational Leadership

and Strategic Management, Organizational Culture, Motivation & Commitment
and Business Performance.

42
Below figure shows Correlation Coefficient between Transformational Leadership
and Strategic Management, Organizational Culture, Motivation & Commitment
and Business Performance in chart form.

Correlation with Transformational Leadership

1.200
1.000
1.000 0.900 0.848
0.747
0.800 0.667
Correlation
0.600
Coeffecient
0.400
0.200
0.000
Transformational Strategic Organization Motivation and Business
Leadership Management Culture Commitment Performance

Figure 5: Correlation Coefficient between Transformational Leadership and

Strategic Management, Organizational Culture, Motivation & Commitment and
Business Performance.

Above table and figure shows a positive correlation of transformational leadership

towards Strategic Management with value of 0.9 being the strongest of all. Next
strongest is motivation and commitment with value of 0.85. Next is Organizational
culture with value of 0.75 and last is Business Performance with value of 0.67
which is positive but lowest of all.

Below figure shows Correlation Coefficient between Business Performance and

Strategic Management, Organizational Culture, Motivation & Commitment in chart
form.

Correlation with Business Performance

1.200
1.000
1.000

0.800 0.725 0.694

0.650
0.600 Correlation Coeffecient
0.400

0.200
0.000
Strategic Organization Motivation & Business
Management Culture Commitment Performance

Figure 6: Correlation Coefficient between Business Performance and Strategic

Management, Organizational Culture and Motivation & Commitment.

43
 Above table and figure shows a positive correlation of Business Performance
towards Strategic Management with value of 0.725 being the strongest of all.
Next strongest is motivation and commitment with value of 0.694. Next is
Organizational culture with value of 0.65.

10.1.3 Level of Significance

As per calculations done using data analysis tool Correlation Coefficient between
transformational leadership and strategic management is 0.90 and significance of
correlation coefficient value is 14.15.

As per calculations done using data analysis tool Correlation Coefficient between
transformational leadership and Organization Culture is 0.747 and significance of
correlation coefficient value is 7.7.

As per calculations done using data analysis tool Correlation Coefficient between
transformational leadership and Motivation & Commitment is 0.848 and
significance of correlation coefficient value is 10.96.

As per calculations done using data analysis tool Correlation Coefficient between
transformational leadership and business performance is 0.667 and significance
of correlation coefficient value is 6.13.

Above significance values confirm our sample being statistical significant.

Therefore we can conclude that there is more than 95% probability that our
sample is representative for population researched.

10.2 Interview Results

Vision:

It was very clear from the interviews that CU KSA Head and management are
very clear in its vision and goals.

STC KAM mentioned that:

“Our Vision is to be the prime driver in an all communicating world. We believe in

an all communicating world. Voice, data, images and video, conveniently
communicated anywhere and anytime in the world, increasing both quality-of-life,
productivity and enabling a more resource-efficient world.”

Mobily KAM mentioned that:

“Our vision is to be the prime driver in all communicating world and we envision
50 Billion world wide connections by end of 2020 where everything that needs
connection will be connected.”

Most of the engagement heads also mentioned similar definitions while

expressing the fact that Ericsson is very clear that it will be the prime driver in
mobile or fixed communication world and strongly believes that by 2020 there will
be demand for 50Billion world wide mobile broadband connections.

One of the Engagement head mentioned that:

44
“Utilizing the power of networks is central to realizing the vision of a world with 50
billion connected devices, enabled by ubiquitous internet access over mobile
broadband. The cost of cellular machine-to-machine modules is estimated to be
falling at an annual rate of 15 percent, which makes connectivity-based services
increasingly affordable. The cost of connectivity is already as low as USD 1.4 per
gigabyte. And demands for constant availability, resilience, coverage, latency and
bandwidth will only increase with increased dependence on mobile systems.”

Regarding goals it was very clear that we want to regain our 60% market share in
Customer Unit Saudi Arabia while retaining our number one position in KSA. At
the same time we want to break in all three Operators STC, Mobily and Zain.

Regarding increasing our sales volume most EP heads referring to CU KSA Head
mentioned that we should focus mainly on STC and Mobily instead of spending
too much time on Zain. In last two years we have repeatedly lost Zain to Huawei
and Nokia who are desperate to do business even at break even. Considering
bad financial condition of Zain it is currently not seen as an attractive business
opportunity instead we are focused more on STC and Mobily’s existing and new
business opportunities.

Regarding new market trends most of the Heads and KAM mentioned that Going
Mobile Broadband: Video, Cloud Services, Internet and Machine to Machine are
where we are heading. We will see more connected devices and affordable smart
phones. At the same time we need to have tiered pricing and new business
models for mobile broadband.

STC KAM mentioned:

“We need to drive the ecosystem for 50 Billion vision. We are currently working
with STC for Machine to Machine, Verticals and connected devices opportunities.
We are preparing STC for new demands and new pricing models. Ericsson is
also developing partnership with new industry for Cloud, M2M and Wi-Fi Offload
Services”.

Inspiration & Role Model:

It was evident from interviews that CU KSA Head has got a very inspirational
personality and every one working under him view him as a role model to follow.

STC KAM mentioned:

“Ali Eid always tries to encourage, motivate and guide the team. He is very
supportive during tough times and best thing about him is that he takes the heat
from both customer and regional management. He never makes his team look
bad in front of others.”

Mobily KAM mentioned:

“At times he is tough when it needs to be tough and at times he is really flexible.
He is like a fatherly figure and a role model always inspiring and motivating the
team to work hard and effectively produce results.”

45
Most of the Engagement Heads shared similar views. One of them even
mentioned that he inspires us to perform better and go extra mile. One EP head
appreciated the fact that Ali’s thinking is very farseeing and inspiring. He
mentioned “Last year when we were trying to request for more resources during
Zain’s bid Ali Eid mentioned that it will be better to use your existing resources
and pay them special over time. In case we hire resources and if we didn’t get
Zain’s project then we may have to layoff people. Later we didn’t get Zain’s
project and Ali Eid earned lot of respect from me.”

Very few criticized the fact that Ali Eid is running the business as a family
business. Few mentioned that he likes working with team of his likeness. One of
them even mentioned that “key selections in CU KSA were made from his past
team mates.” Others appreciated the fact that he is like a leader with magnetic
personality who forms a team and normally takes it along with him where ever he
goes.

Support for personal Growth:

Most of the EP heads mentioned that Ali Eid has been very supportive regarding
personal growth. In past due to financial issues most of the trainings and
business trips were put on hold. In Ericsson mostly trainings are arranged in
Sweden, Italy, Spain, Malaysia, Dubai and USA since we have Education
Centers located in these areas responsible for providing trainings. Ali Eid took
personal interest in restoring trainings. He tried his best to arrange local trainings
by inviting instructors to come to Saudi thus saving cost and making his team
happy.

Ali Eid also tried to arrange non technical trainings e.g. Sales, Business,
Management related which was very much appreciated by KAM and EP Heads.

One of the EP Head mentioned that “For the first time in Ericsson CU KSA Ali Eid
arranged customized sales training program from third party e.g. Huthwaite
International. In past we only had technical trainings from Ericsson Educations
Centers but no business or sales skill related trainings.”

Few EP Heads have also been encouraged by Ali Eid to enroll in MBA programs
where Ericsson will pay 50% cost and remaining to be paid by individuals.

Trust:

Both the KAM appreciated the trust relationship that they enjoy with Ali Eid. Both
mentioned that Ali Eid has set expectations and targets and has faith and trust in
his team that we do know how to achieve targets and meet expectations.

From EP Heads I got mixed reviews. Mostly people who were appointed by Ali
Eid praised the trustworthy relationship while others gave mixed reviews and few
were of the view that in beginning he was very commanding but not they have
started to develop trust.

Many appreciated the action of transparency that has been imposed on training
budgets. In this way everyone knows how training budget is being spent thus
developing trust with management. Proper job grading with pay sales was
another step taken to introduce transparency. Employees at all levels are
encouraged to speak and come up with new ideas for betterment of company.
“Need for Change” open discussion forms have been created where CU KSA
Head and management is actively involved in answering employee questions and
discuss new ideas and ways of working for improved performance.

46
Many appreciated quarterly all employee meetings in which management
presents current business status, Quarterly Net sales, Quarterly Orders booked,
remaining targets, challenges, mile stones, priorities and way forward for future
are presented. Many appreciated the friendly atmosphere during the meeting
where everyone gets a chance to question management openly. Prizes and
rewards are given to appreciate performance and encourage others. Regular
feedback how to make all employee meetings effective was also appreciated.
One EP Head mentioned that “such activities help to create a transparent
environment among management and employee while developing trust.”

Consideration for followers needs:

STC KAM mentioned:

“Ali Eid is very helpful and supportive in tough situation. As you know customer’s
attitude in this part of the world so we really need a manager who can lift our
moral, cheer us up and guide us when it comes to resolving critical issues. For us
he is like a coach who listens and understands our concerns and tries to solve
them.”

Mobily KAM mentioned:

“Whether its business or personal needs, Ali Eid is excellent in understanding and
resolving the issues e.g he was really helpful during Mobily’s LTE trail where
resources in Sweden were fully booked and we were not getting resources in
requested time. Finally with Ali’s effort we were able to arrange trial resources as
per customer’s request. I remember few years back in my last job when I was
very much bored with my repetitive job work and was about to leave Ericsson he
guided and helped me in convincing to move from technical sales to Account
Management. Decision really paid of and now I am key account manager for
Mobily.”

Most of the EP heads shared similar views. They appreciated the fact that Ali Eid
realized that trainings are critical for individual needs and he took personal
interest in arranging local trainings. Few appreciated the fact that since Ali Eid
joined we have been getting bonus and pay raise which was not the case with
previous management and we were always told you should be happy to retain a
job in these tough economic times.

Strategic Management:

It was very clear from interviews from Account and EP Heads that Strategic
Management was the most focused area of all by Ali Eid and management.

STC KAM mentioned:

“I remember the first speech that Ali Eid gave mentioning that we need to
concentrate on areas which need the most change. Our strategy towards
customer and operator’s strategy towards end user are on my top priority. If
Operator revenue suffers then effectively we suffer. I do not want a
client/customer but a strategic partnership relationship between us and Operator
where both will benefit. We should be perceived as trusted and preferred partner
by Operators. I always see Ali Eid saying Customer First.”

Mobily KAM mentioned:

47
“In CUKSA, we have framed our Strategy around four dimensions. First and most
important is Customers: How do we create superior value for our customers
where we move in strategic alliance with customer. Second is Employees: How
do we achieve success through skilled and motivated people, third is the Market
Leadership where we take advantage of market leadership while being number
one in Mobile Broadband and fourth is new business model where we try to adapt
to new business model of pay as you grow. We continuously revise our strategy
as per business requirements and ensure proper propagation among employees
since they are the ones who will make this happen.”

EP Heads also appreciated a customer and employee focused strategy where we

are want to have motivated and committed employees working in conjunction with
Operator to help improve their profit and grow business.

Regarding new business opportunities STC KAM mentioned:

“Our strategic focus to achieve our ICT ambitions involves establishing leadership
positions in cloud solutions, machine-to-machine communication and business
support systems. This includes continuing to develop excellence in software, end-
user knowledge and developing our brand perception as an ICT player. Similarly
we are helping STC to provide new Quality of Service Solutions to help them
compete with growing data demand where user who has unlimited data can have
further data packages as gold, bronze or silver or can request additional
bandwidth on demand while watching online movie or games. We encouraged
them to use tiered business models instead of flat rate and categorize service
using QoS. Smart Phones along with online video games and videos/movies are
the main driver of growing data traffic. In response to the increase in traffic and
number of connected devices, we helped STC to increase the capacity and
coverage of their network. This was done through investment in mobile
broadband across radio access, backhaul and packet core by extending the
existing network infrastructure as well as migrating to latest generation
technologies LTE.”

Regarding new business opportunities Mobily KAM mentioned:

“New Business Opportunities comes from our vision of networked society. In the
Networked Society, we will see major changes to the way in which businesses
are run in many industries, such as utilities, smart homes, transport, media and
health care. These industries are looking to modernize their processes and
systems a key step towards realizing the vision of 50 billion connected devices by
2020. Together with Mobily we have already started engaging on many of these
topics with industry and response is very positive. Our Mobile Cabinet solution for
Mobile Broadband during Hajj has been another key success during last year
which really helped Hajj pilgrims for better mobile coverage and Mobily to get
more revenue ”

Regarding dealing with Chinese vendors STC KAM mentioned:

48
“Back in 2010 one of the biggest threats from CU KSA was Huawei and ZTE who
were capturing Ericsson share. As part of Strategic Management several steps
were taken e.g. Pro active engagement by Account and EP, New Pay as you
grow business model, Strategic Business partnership with Operator, Emphasis on
End to End solution offering with Managed Services, Quality Solution/Products
backed by customer references, Technology leadership, Commercial and
Technical Business Intelligence, Bare Bone Tender Scoping, Maximizing local
service offering instead of using Global Services to minimize cost, trials, new
business model consulting were few steps taken by management to compete. It
really did pay off and we have regained our share from 50% to 54%. Goal is to
reach 60% by end of 2012. Anyhow we still lack in different processes that are
part of Ericsson Global group directives and we are trying our best to improve but
that will take time e.g. Huawei technical sales team member sitting in STC’s
premises can provide quotation to STC for any product with list pricing from his
computer using excel file where as Ericsson employee has to go through specific
software that runs on Ericsson LAN. Database of that software is in Sweden so at
times it’s very slow. Once BoQ is created then commercial management does
pricing and then sends it to STC. At very minimum it will take 2-3 days.”

EP heads also appreciated steps being taken to tackle Chinese vendors specially
hiring some of key team members from Huawei who had good relation with
customer and very good understanding of how Huawei works. One of the EP
head mentioned “We learnt that Huawei normally comes in cheap and later starts
making money from Licenses, Services and Support. They will give a product for
free with limited software features and licenses and later will charge good amount
for enabling more software features or additional licenses for additional users to
cover up their costs. This really helped us in thinking that we also need to work
on pay as you grow business models which we didn’t have in past.”

Many appreciated steps taken to ensure that strategy is propagated among

employees e.g. Strategy Quiz was started and everyone was encouraged to take
part in it with Sony Ericsson Xperia Arc were given as prize money.

Organization Culture:

Both the KAMs were very critical about further need of change in Organizational
Culture in overall Ericsson along with Ericsson CU KSA.

STC’s KAM mentioned:

“Whenever I go to STC’s premises I see Huawei’s technical sales people sitting in

their premises. STC has given them permanent work stations to sit. Their main
purpose is listening, eavesdropping, socializing, engaging at much higher level
then our technical sales team does. Thus they are realizing, understanding and
grabbing opportunities much quicker then we do. By engaging at this level they
are trying to influence STC to use their own solutions/products and showing them
that their support is available 24/7. In Ericsson we are under process of
developing this culture. In past our technical sales team only used to visit
customer when there is a meeting or during RFPs negotiation or workshops. Ali
Eid realized the fact that our technical sales need to evolve from passive to
active. Last year we had various consultative engagement and sales seminars to
help team improve sales engagement skills and it was made mandatory for
technical sales team to spend at least 20 hours with the customer per week. I
was asked to tell STC that our dedicated sales teams will be sitting in customer
premises. STC really took this in a positive way. We are improving on this but still
we lack resources compared to Chinese competitors.”

49
Mobily’s KAM mentioned:

“There are two main issues I see. Most of the Ericsson employees who have
been working for long still feel and think the same way as we used to do in past.
In past we didn’t have enough competition so sales were easy. Now tables have
turned customer has choice to choose between us or our competitors who
provide cheaper solution, are more responsive, more submissive and have less
complex processes. Second issue that I see which is specific to CU KSA is taking
sales support from Sweden. In Saudi Thursday and Friday is weekend and in
Sweden its Saturday and Sunday. So effectively we are working with rest of the
world only on Monday, Tuesday and Wednesday only’. Sales support from
Sweden is closed on Saturday and Sunday. This has been highlighted by us to
Regional Management on various occasions but as of today we are still facing
tough time getting support on weekends. On the other hand in Huawei or ZTE
Global support is available seven days a week and response time is restricted to
24 hours. We do not have such strict KPIs.”

Engagement Heads also shared similar thoughts. Few appreciated the fact that
Ali Eid inducted few candidates from Chinese vendors to better understand their
way of working so we know how to mitigate and redefine our roles and
responsibilities as per today’s and future’s demands specific to CU KSA.

Many appreciated “Need for Change” open discussion web forums that Ali Eid
has started where suggestions from everyone are posted personally or
anonymously and managers and subordinates are free to discuss changes that
are currently taking place and suggest new changes that must take place.

One of the EP head mentioned:

“There is a big gap of organizational culture and moral ethics like how we work
and how some of the Chinese companies work. Last year when Huawei took STC
to China they took entire families wives and kids to the trip. I even heard that they
paid for shopping and expensive hair saloons and massage parlors. Personal
assistants and drivers were assigned for the entire trip and it was more of
recreational then customer business trip. I even heard one method of bribery
involved hiring an outside consultant to help “win” a contract. This was typically a
local resident with ties to ruling leaders. Do you think we will ever do that no and I
do not say that we should even do that. But we need to make STC higher
management aware of such facts since such treatment will lead to biased
decisions which may not be in favor of STC. Anyhow I do appreciate culture of
occasional gifts and social events with customer. Currently we lack in this area.”

Motivation and Commitment:

Almost everyone appreciated the fact that key actions have been taken by Ali Eid
to ensure that employees are motivated and committed.

STC KAM mentioned:

“If you see Dialogue results of 2009 and 2010 you will see that employee
motivation and frustration was at its lowest. Since Ali Eid took over things he
mentioned in one of the management meeting that one of his main targets will be
to raise employee motivation. Since then many actions e.g. bonus, yearly pay
raise, trainings, employee of the month, discussion forms, quarterly all staff
meetings, rewards, team building activities etc have been initiated to motivate
individuals.”

50
Mobily KAM mentioned:

“I believe one of the major factors for motivation and commitment is recognition
and reward. In past we only had yearly recognition and reward in terms of bonus
was same for everyone. Ali Eid started the idea of employee of the month and
individual recognition based upon yearly performance rather then same bonus for
all. My team is really focused towards its goal and is very committed to achieve
them.”

One of the EP Heads mentioned:

“A higher Employee Motivation is one of the Group Targets 2011-2012 that will
contribute to creating value for customer, employees and shareholders. The
current Employee Motivation Index is 69 which is much better then previous
years and the target for Ericsson´s wanted position 2015 is 75 which we may
achieve even this year. Management is closely monitoring this and is very much
keen to reach wanted position as soon as possible.”

Business Performance:

From the interviews it was clear that Business performance has been improving
since new management took over and all news steps taken by Ali Eid were
appreciated and were having impact on positive business performance.

STC KAM mentioned:

“Due to steps our net sales have improved and customer satisfaction is also
improving. It will eventually help us to regain our lost market share back to 60%
and even more.”

Mobily KAM mentioned:

“Developing strategic partnership with Operator and helping him overcome his
challenges by introduction of new business opportunities triggered as a major
sales booster for us.”

One of the EP Heads mentioned:

“Results speak for themselves. Our net sales are improving and we are getting
bonus and pay raise since last two years.”

One EP Head had a very different and interesting opinion he mentioned:

“To tell you the truth most of the business in this part of the world is won because
of contacts and influences especially when royal families are involved. In this part
of the world we are still far away from fair game but we are catching up. In many
cases even before the project is announced decision is already made who will get
which part of the pie. So at times it is very political rather then skillfulness.”

One EP Head even mentioned the following:

“Some of the key positions in CU KSA are assigned after discussion/approval of

STC and Mobily. This is done to influence decision making at later stage.”

One EP Head also mentioned:

51
 “It will never be documented or mentioned anywhere but it remains a fact that
kickbacks, references, influences, recreational business trips and sometimes
even Governments heavily influence decision making on the Operator side. Why
we lost Zain from Nokia is a prime example of political decision.”

One EP Head also mentioned:

“Reason for positive business performance this year is investment of STC and
Mobily for modernization of their 3G/2G along with introduction of LTE network.
We did well overall since in STC we got the Lion’s share but still didn’t get a
single base station in Mobily’s LTE network even though we have a strong
presence in Mobily’s 2G and 3G network. I guess it could have been much better
if we had won the LTE deal in Mobily as well which went to Huawei who gave
away LTE to Mobily Free of Cost”

10.3 Economic Results

10.3.1 Balanced Score Cards

Below Score cards details for MU-KSA were taken from Report MU KSA Score
Card (2009).

MU KSA Scorecard 2009

CUSTOMER COMPETITIVE INTERNAL

FINANCIAL EMPLOYEE
POSITION EFFICIENCY

Net Sales Customer 60% Market Share Profit CUKSA

Satisfaction Improvements People and
Organization
Readiness

Gross Margin
Contribution Motivation

WC to NS

Five assessment areas were used namely financial, customer, competitive

position, internal efficiency and employee.

Assessment was categorized as off track (red), warning (orange), Robust

(yellow), commitment (light green) and stretched (dark green).

52
In financial it was net sales, gross margin and Working Capital to Net Sales. All
were off track.

In Customer it was customer satisfaction. It was on warning level.

In Competitive position it was market share with 60% as target. It was on warning
level.

In Internal efficiency it was profit improvements and it was reaching committed.

In Employee it was people and organization readiness. It was reaching

commitment level. Employee motivation was on warning level.

Below Score cards details for CUKSA were taken from Report RMEA Score Card
(2010). Ali Eid joined Ericsson CU KSA by July 2010 when re organization was
finally completed and new management took over the charge.

CU KSA Scorecard 2010

CUSTOMER COMPETITIVE INTERNAL

FINANCIAL EMPLOYEE
POSITION EFFICIENCY

Net Sales Customer 60% Market Share Profit CUKSA

Satisfaction Improvements People and
Organization
Readiness

Gross Margin
Contribution Motivation

WC to NS

Figure 7: CU KSA Score Card 2010

Five assessment areas were used namely financial, customer, competitive

position, internal efficiency and employee.

Assessment was categorized as off track (red), warning (orange), Robust

(yellow), commitment (light green) and stretched (dark green).

In financial it was net sales, gross margin and Working Capital to Net Sales. All
were off track.

In Customer it was customer satisfaction. It was off track.

53
In Competitive position it was market share with 60% as target. It was also off
track.

In Internal efficiency it was profit improvements and it was reaching stretched.

In Employee it was people and organization readiness. It was reaching

commitment level. Employee motivation was on warning level.

Below Score cards details for CUKSA was taken from Report RMEA Score Card
(2011).

CU KSA Scorecard 2011

CUSTOMER COMPETITIVE INTERNAL

FINANCIAL EMPLOYEE
POSITION EFFICIENCY

Net Sales Customer 60% Market Share Profit CUKSA

Satisfaction Improvements People and
Organization
Readiness

Gross Margin Deals in Key Areas

Contribution Motivation

Accelerate
New Business Innovation and
WC to NS Models Technology
Leadership

Figure 8: CU KSA Score Card 2011

Five assessment areas were used namely financial, customer, competitive

position, internal efficiency and employee.

Assessment was categorized as off track (red), warning (orange), Robust

(yellow), commitment (light green) and stretched (dark green).

In financial it was net sales, gross margin and Working Capital to Net Sales.
There was improvement in all three areas.

In Customer it was initially customer satisfaction only. Later Deals in Key areas to
help customer grow his business e.g. machine to machine, cloud, Wi-Fi Offload
and New Business Model e.g. Pay as you grow were also added.

In Competitive position it was market share with 60% as target. It was getting
better and reached robust.

In Internal efficiency it was profit improvements and it was reaching stretched.

54
In Employee it was people and organization readiness along employee motivation
initially. Motivation improved in 2011. Also Accelerate Innovation and Technology
leadership was added to take advantage of Ericsson’s technology leadership and
facilitate the customer with new innovative solution and ideas to help grow his
business.

Below Score cards details for CUKSA was taken from Report RMEA Score Card
(2012).

CU KSA Scorecard 2012-Q1

CUSTOMER COMPETITIVE INTERNAL

FINANCIAL EMPLOYEE
POSITION EFFICIENCY

Net Sales Customer 60% Market Share Profit CUKSA

Satisfaction Improvements People and
Organization
Readiness

Gross Margin Deals in Key Areas

Contribution Motivation

Accelerate
New Business Innovation and
WC to NS Models Technology
Leadership

Figure 9: CU KSA Score Card 2012-Q1

Five assessment areas were used namely financial, customer, competitive

position, internal efficiency and employee.

Assessment was categorized as off track (red), warning (orange), Robust

(yellow), commitment (light green) and stretched (dark green).

In financial it was net sales, gross margin and Working Capital to Net Sales.
There was improvement in all Net Sales.

In Customer so far results are similar to next year.

In Competitive position it was market share with 60% as target. It is getting better
but still not committed.

In Internal efficiency it is profit improvements and it is reaching stretched.

In Employee section motivation improved to committed for the first time since
2009.

55
10.3.2 Sales Report

10.3.2.1 CU KSA Reports

Below details for CUKSA were taken from Report MU KSA Sales Report 2009
(2009).

Figure 10: CU KSA Sales Performance Year 2009

Grey bars are the result figures for Orders Booked, Net Sales and Operating
Income. Targets have three levels. Robust, committed and stretch. Normally 80%
is Robust, 100% is committed and 115% or above is stretched.

During 2009 Ericsson CU KSA didn’t even reach robust in any area.

Below details for CUKSA were taken from Report RMEA Sales Report 2010
(2010).

56
Figure 11: CU KSA Sales Performance Year 2010

Grey bars are the result figures for Orders Booked, Net Sales and Operating
Income. Targets have three levels. Robust, committed and stretch. Normally 80%
is Robust, 100% is committed and 115% or above is stretched.

Results of 2010 were not that different from 2009. During 2010 Ericsson CU KSA
didn’t even reach robust in any area.

Below details for CUKSA were taken from Report RMEA Sales Report 2011
(2011).

Figure 12: CU KSA Sales Performance Year 2011

57
 Grey bars are the result figures for Orders Booked, Net Sales and Operating
Income. Targets have three levels. Robust, committed and stretch. Normally 80%
is Robust, 100% is committed and 115% or above is stretched.

During 2011 Ericsson CU KSA performed much better. Both Orders Booked and
Net Sales were above Robust.

Below details for CUKSA were taken from Report RMEA Sales Report 2012-Q1
(2012).

Figure 13: CU KSA Sales Performance Year 2012-Q1

Grey bars are the result figures for Orders Booked, Net Sales and Operating
Income. Targets have three levels. Robust, committed and stretch. Normally 80%
is Robust, 100% is committed and 115% or above is stretched.

Currently in 2012 Ericsson CU KSA is performing even better then last year. Both
Orders Booked and Net Sales reached committed for the first time in three years.

10.3.2.2 Regional Reports

Below details for Regional Overview were taken from Ericsson 2010 Sales Report
(2010).

58
Figure 14: Regional Sales Overview 2009 - 2010

Following was mentioned regarding RMEA (Region Middle East ) specific to

Saudi Arabia “Middle East sales decreased -8% year-over-year. Turkey, Egypt
and the Gulf countries developed positively, while Saudi Arabia and Pakistan
were weak.”

Below details for Regional Overview were taken from Ericsson 2012 Q1 Sales
Report (2012).

Figure 15: Regional Sales Overview 2011 - 2012 Q1

Following was mentioned regarding RMEA (Region Middle East) specific to Saudi
Arabia “In Middle East Year on Year (YoY) growth was mainly driven by strong
sales in Saudi Arabia while business was slower in Turkey. Political unrest is still
impacting the region and operators are cautious with infrastructure investments.
Services grew strongly, especially in managed services and systems integration
as operators are looking into network performance quality and operational
efficiencies.”

59
11 Data Analysis
The primary objective of this study was to determine the relationship of
transformational leadership towards organizational performance where
transformational leadership can utilize strategic management, employee
motivation & commitment and organizational culture as key elements and
processes to help improve business performance

As part of above objectives the Multi-factor Leadership Questionnaire developed

by Bass and Avolio in 1995 (MLQ 5-X Short Form) was selectively used to
measure the level of transformational leadership core facets i.e. vision,
inspiration, role model, support of personal growth, trust and consideration of
followers needs. It was very clear from the results that all necessary attributes of
transformational leadership were eminent in CU KSA Head and management
team. Based upon survey results for every attribute they scored between 60-75%
which is very healthy.

Through interview results it was learnt that CU KSA Head and management have
a clear vision and mission. Ericsson CU KSA management knows exactly where
they want to be in next 5 years and how telecommunication will help evolve
society in coming years. CU KSA management has clear goal to regain 60%
market share and retain number one position in the KSA. From a Global
prospective they envision 50 billion connections by 2020 where everything that
needs connection will be connected. The goal has been communicated very well
with in the organization and everybody is inspired, encouraged and motivated to
achieve that goal by using simple techniques e.g. employee of the month awards,
technical sales and business related trainings, transparency in training budgets,
open web forums, quarterly all employee meetings, strategy Quiz, yearly
performance bonus and salary raise. It was learnt that CU KSA Head and
Management is very inspirational and most of the people in the organization look
forward to CU KSA Head as role model. He is seen as a fatherly figure and a role
model by many in the company. Few criticized the fact that he wants to work with
team of his linking and has tendency of bringing team members of his liking in
key positions. On the other hand some appraised this quality as a leadership skill.
It was learnt that CU KSA Head and management is very supportive when it
comes to personal growth and consideration for follower’s needs. Trainings that
were put on hold were restored in a smart way by arranging trainer and facility
locally within Ericsson premises. New Sales and Business related trainings where
also organized and people were encouraged to enroll in MBA programs where
Ericsson will pay 50% of the cost. People were also awarded bonus and pay
raise which was frozen in past. A lot more focus was given to evolve Ericsson
sales solution team from technical sales team to consultative sales team that will
engage more with the customer giving them the feeling of a strategic partner
while using consultative sales approach. It was learnt that CU KSA Head and
management have developed a trust relationship between themselves and
employees. Transparency imposed on training budget is one example of
developing trust among employees. Having quarterly all employee meetings
where Management tells current business status, challenges and way forward are
another form of activates started by management to promote awareness and
develop trust among employees. Open web forums where everyone can question
management were really helping to develop trust and clarification while clearing
ambiguities among employees.

60
Interview results heavily supported the survey results in all areas and it can be
analyzed that Ericsson CU KSA Head and Management fulfill the criterion of
transformational leadership having strong presence of transformational
leadership attributes namely vision, inspirational, role model, Support for personal
growth, trust and consideration for followers needs.

As part of the overall objective of this study it was studied how transformational
leadership can have an impact on strategic management that will help Ericsson
formulate a strategy to overcome its existing challenges and help in producing
positive business results. Survey results showed that CU KSA head and
management are on right track where strategy formulation, implementation and
periodic evaluation are taking place to help achieve organizational goals. Overall
CU KSA head and management scored 72% in strategic management. Using
data collected from survey correlation of transformational leadership towards
Strategic Management was calculated and it turned out to be value of 0.9
showing a very strong correlation between the two. Correlation between Strategic
Management and Business performance was calculated and it turned out to be
value of 0.725 showing a strong correlation between the two.

Through interview results it was learnt that CU KSA Head and Management saw
strategic management as key area to focus on. As part of strategic management
firstly Ericsson’s relationship towards operators was re-defined as a strategic
partner rather then customer client relationship. Focus was given to help
Operator grow business and come up with new business opportunities with focus
on QoS, Machine to Machine and Cloud services. Operators were guided and
encouraged to use new business models based upon tiered prices instead of flat
rate while providing premium services for the cloud users eventually helping
operators to generate more revenue. Secondly raising employee motivation to
75% was defined as the key mile stone. Taking advantage of market leadership
and new business models were defined as third and fourth key focus areas for
strategic management. Seeing Chinese companies as the biggest threat strategy
was formulated to diffuse their threat which helped in producing positive results
and Ericsson regained its lost share from 50% to 54%. They still haven’t achieve
60% market share which is the primary goal but it seems that in this market
various other factors e.g. politics, business corruption, royal families influences,
government involvement hinders final decision making on the customer side.

Scorecard reports also suggested that as a result of positive steps taken for
strategic management customer satisfaction has improved from being off track to
committed level. Deals in key areas to help customer create new revenues and
news business models have also been appreciated by customer since it’s helping
operators to generate new revenues.

Interview results together with Score Card Reports strongly supported the survey
results and it can be analyzed that Ericsson CU KSA Head and Management
have heavily influenced strategic management by defining clear objectives, key
strategic focus areas and brining about major changes in business models to help
overcome existing challenges and helped operators to create new business
opportunities. Clear strategy and its implementation have resulted in positive
business growth.

Now based upon survey, interview results, balance score card reports it can be
mentioned that Hypothesis 1 is supported.

61
H1: Transformational Leadership can help organization achieve its goals by
having major impact on Strategic Management which in effect leads towards
positive business performance.

My findings are inline with previous research conducted by Avolio (1999) and
McShane & VonGlinow (2000) which showed that transformational leaders are
strongly correlated towards strategic management which contributes towards
positive business performance.

As part of the overall objective of this study it was studied how Transformational
leadership can have a positive impact on Organizational Culture that will help in
producing positive business results. Survey results showed that CU KSA head
and management are having a fairly positive impact on Organization Culture by
scoring 65%. Using data collected from survey Correlation of transformational
leadership towards organization culture was calculated and it turned out to be
value of 0.75 showing a strong correlation between the two. Correlation between
organization culture and business performance was calculated and it turned out
to be value of 0.65 showing a positive correlation between the two.

Through interview results it was learnt that CU KSA Head and Management felt a
great deal of change In organization culture is required. Emergence of Chinese
players in the market have changed the rules of the game where Operator
expects the vendor to engage more, spend more time in their premises, be more
flexible in business terms and simplify process for faster and quicker responses.
Management has taken positive steps e.g. “Need for Change” open discussion
web forums and making it mandatory for technical sales team to spend 20 hours
per week with the customer. Management has succeeded in many cases by
creating an impact locally but is still struggling to have an impact globally.
Currently they still face issues e.g. different weekend days in Saudi as compared
to rest of the world, Technical sales support during weekends, Ericsson
centralized sales tools and processes that have been there since many years and
will take considerable time to change.

It was also learnt that in some cases competitors were using different means of
business corruption and making operators getting used to such treatment.
Apparently this still remains an issue with minor impact today that may become
major if not tackled properly.

Now based upon survey and interview results it can be mentioned that
Hypothesis 2 is supported.

H2: Transformational Leadership can help organization change their unique

culture in the direction of more transformational qualities that help them achieve
their goals which in effect leads towards positive business performance.

My findings are inline with previous research conducted by Bass and Avolio
(1993) and Tang (2006) who suggested that transformational leaders are
positively correlated towards organization culture which effectively contributes
towards positive business performance.

62
As part of the overall objective of this study it was studied how Transformational
leadership can help employees to be more committed and motivated to achieve
desired results and goals while contributing to positive business performance.
Survey results showed that CU KSA head and management are having a positive
impact on motivation and commitment and they scored 73%. Using data collected
from survey Correlation of transformational leadership towards Commitment and
Motivation was calculated and it turned out to be value of 0.84 showing a very
strong correlation between the two. Correlation between employee motivation &
commitment and business performance was calculated and it turned out to be
value of 0.69 showing a positive correlation between the two.

Scorecard reports also suggested that as a result of positive steps taken to

increase employee motivation and commitment the level has improved from
warning to committed.

Through interview results it was learnt that CU KSA Head and Management felt
that in order to achieve the desire results and milestones it is very vital to raise
motivation and have committed employees. Employee motivation was defined as
on of key strategic focus areas and target of 75% motivation and commitment
level among employees was set. Several steps were taken to raise commitment
and motivation e.g. employee of the month, team building activities, discussion
forums, trainings, yearly bonus, yearly pay raise etc to name the few. Results
were tremendous and employee motivation index done during last dialogue
survey has already reached 69%.

Now based upon survey, interview results and balanced score card report it can
be mentioned that Hypothesis 3 is supported.

H3: Transformational Leadership has a positive impact on employee commitment

and motivation which in effect leads towards positive business performance.

My findings were inline with previous research conducted by Avolio (1999) and
McShane & VonGlinow (2000) which transformational leaders can promote
employee motivation and commitment and engender them to fulfill organizational
missions and accomplish the organizational goals thus leading towards positive
business performance.

As part of the overall objective of this study it was studied how Transformational
leadership can have a positive impact on business performance and growth.
Survey results showed that CU KSA head and management are having a positive
impact on Business Performance and they scored 72%. Using data collected
from survey Correlation of transformational leadership towards Business
Performance was calculated and it turned out to be value of 0.67 showing a fairly
strong correlation between the two.

Scorecard reports also suggested that net sales have improved from being off
track to committed. Sales reports also suggested improvement of Orders booked
and net sales over time and currently both are reaching committed level.

Through interview results it was learnt that CU KSA Head and Management have
contributed a lot towards positive business performance and steps taken by them
have helped to regain lost market share and increase Net Sales and Orders
booked. Some suggested that it’s not always leadership that help contribute
towards positive business performance but in many cases it’s a political decision
making that reflect the results. Many suggested that in this part of the world
references, influences, royal families and politics has got a lot to do for getting
business and in those cases leadership is helpless.

63
Few even suggested that results could have been much better if we have won the
LTE deal with Mobily which was given to Huawei who offered the deal free of
cost.

Now based upon survey, interview results, balanced score card and sales reports
it can be mentioned that they all support Hypothesis 4.

H4: Transformational Leadership has a positive impact on Organizational

Performance and growth

Finally all of above results conclude that effective leadership having

transformational leadership attributes have a positive impact on organization
performance. As you can see in case of Ericsson CU KSA results have been
positive since new management took over with positive impact on sales, strategic
management has been in place with more focus and clear goals, employee’s
motivation ratio is getting higher, organization culture is fostering to be
acquainted with new market demands, customer satisfaction is increasing and
market share is also rising. Most important of all Ericsson Management is
appreciating and highlighting their success in Yearly Sales Reports.

This research validates that the relationship between transformational leadership

and business performance is significant and positive. Several studies that support
such findings are Howell and Avolio (1993) who reported a positive relationship
between transformational leadership and business unit performance. Crookall
(1989) also reported that a 3-day formal training intervention that focused on
improving transformational leadership skills resulted in increased business
performance. All correlation values from our survey were positive and above 0.5,
this implies that firms need Transformational leaders with focus on strategic
management, organization culture and employee motivation & commitment that
can help experience substantial business growth and performance. Based upon
research that was done during this study a new piece of relevance can be added
to the literature regarding this relationship: Transformational leaders can have a
significant impact on business performance by emphasizing on process of
Strategic Management, boosting Employee Motivation & Commitment and
fostering Organization Culture. It was learnt that when transformational
leadership utilizes all three of them together where employee motivation and
commitment and betterment of organizational culture were made part of strategic
management process they were all contributing towards each other while
maximizing the impact on business performance helping organization achieve its
goals. The implications of these findings will be further discussed in more detail
in Chapter 6.

This study adds value to the current knowledge base of transformational

leadership in at least six different ways; the first was it was a study related to
Saudi Arabian market; the second it identifies key tools used by transformational
leaders to achieve business performance; the third was that it involved the very
top leadership level of an organization within the country i.e. the country head;
the fourth was it reported both objective and subjective performance measures
using a combination of qualitative and quantitative data; the fifth was it included a
timeframe for organizational performance over a period of four years. The sixth
way it added value to the leadership literature was it reported some very
comparable data through survey, interviews, sales reports and balanced score
card reports. This finding is different than that of many of the past studies on
transformational leadership and this alone may be a significant finding.

64
12 Discussion, Conclusion and Implications
The literature review discussed several studies that found relations among
transformational towards strategic management, employee motivation &
commitment and business performance. Prior research has focused on the
impact of transformational leadership towards strategic management,
employee motivation & commitment and business performance individually.
However none have examined the process with which transformational
leaders exert influence together through strategic management, employee
motivation and commitment and foster organizational culture to enhance
business performance in Saudi Arabian setting.

This study initially focused on discovering if Ericsson which did major

reorganization back in 2010 to cope with existing and new challenges succeeded
in bringing new management with transformational leadership attributes. It later
tries to establish a relationship between Transformational Leadership towards
business performance using strategic management, organizational culture and
employee motivation & commitment to determine if effective leadership with
transformational skills and attributes can have a positive impact on the
organizational performance.

In order to conduct the study data was collected using survey, interviews, sales
reports and balanced card reports. For survey the Multifactor Leadership
Questionnaire (MLQ-5x/Short Form) (Bass & Avolio, 1995) was used to evaluate
transformational leadership attributes in CU KSA head and management team.
Interview results and survey results both indicated that Ericsson CU KSA Head
and management fulfill the criterion of transformational leadership having strong
presence of transformational leadership attributes namely vision, inspirational,
role model, Support for personal growth, trust and consideration for followers
needs.

Other part of the questionnaire was to study impact of transformational leadership

and its correlation with strategic management, employee motivation &
commitment, organizational culture and organization performance. Strategic
management questions were formulated based upon the work done by
Thompson and Strickland (1996). Employee’s commitment questions were
developed with the help of commitment questionnaire of Allen and Meyer (1996).
Organizational culture questions were developed based upon the work of
Podsakoff (1990) and finally organization performance questions were developed
based upon information provided in Dubrin (2010).

Data Analysis function of Excel was used to calculate correlation between

transformational leadership and strategic management, organizational culture,
motivation & commitment and business performance.

65
Through data analysis it was learnt that there is a positive correlation of
transformational leadership towards strategic management with value of 0.9
being the strongest of all and employee motivation & commitment with the value
of 0.85 being the next strongest value. My findings were inline with previous
research conducted by Avolio (1999) and McShane & VonGlinow (2000) which
showed that transformational leaders create a strategic vision, communicate,
model and implement that vision by raising employee commitment and
motivation. Thus, transformational leaders can promote employee motivation and
commitment and engender them to fulfill organizational missions and accomplish
the organizational goals. This strong correlation between Transformational
Leadership and employee motivation & commitment can be explained with fact
that two of four attributes of Transformational Leadership is inspirational
motivation and individualized consideration in which transformational leaders
encourage and inspire their followers to imagine and contribute to the
development of attractive and alternative futures while keeping individualized
consideration of followers in mind that eventually helps them to be develop skills
and ability while being motivated. So it can be suggested that strategic
management is a framework that can help business leaders to create value for
their shareholders, stakeholders, or constituencies, by aligning vision with
capabilities and opportunities. Transformational leaders are able to bring
organizations from frameworks defined by outdated vision, to panoramas of new
vision and mission and implement that vision by raising employee motivation and
commitment while using strategic management that eventually contributes to
positive business performance.

Through data analysis it was learnt that the next strongest correlation factor was
organizational culture with value of 0.75. My findings are inline with previous
research conducted by Bass and Avolio (1993) who suggested that
transformational leaders move their organizations in the direction of more
transformational qualities in their cultures, namely accomplishment, intellectual
stimulation, and individual consideration, therefore, suggesting that
transformational leadership has a direct effect on culture. The empirical evidence
of this study shows transformational leaders exerting influence through
performance systems, while also creating and managing a culture that enables
those processes to flourish and succeed. Organizational culture is just like spirit
of the organizations, and it will carry the energy of the organizations. The study
found that an encouragement of innovational activities and services, and
emphasis on the cohesiveness and the consolidation of the employees can
contribute towards organizational performance and work efficiency.
Transformational leaders can stimulate followers to challenge their current
working conditions, and in turn, followers will perform innovatively thus leading to
positive business performance. This is in line with previous research conducted
by Tang (2006) who suggested that transformational leaders are able to innovate
with the organization, satisfy followers, and achieve higher organizational
performance. It was learnt that the organization can introduce new managerial
conceptions, open new communication channel, respect employees’
creativeness, encourage different thinking and brainstorming in order to help
employees’ to communicate each other and pursue individuals’ goals, that
eventually helps to model organization culture to lead towards positive business
performance.

66
Through data analysis it was learnt that next strongest correlation factor was
business performance with value of 0.67 which is positive but lowest of all. My
findings were inline with most studies conducted in past by Avolio, Zhu, Koh, &
Puja, 2003, Jung & Sosik 2002 and Dubrin’s 2010 that have reported that
transformational leaders have a positive impact on individual and organization
performance. Based on the results from this study and previous studies it can be
mentioned that companies and organizations can experience increased market
performance if leaders are taught about transformational leadership and
Transformational leaders are likely to benefit the organization both in dealing with
immediate crisis during times of misery and in the long run. Transformational
leadership along with strategic management, motivation & commitment, and
organization culture are intertwined and strongly correlated with firms
organization’s performance and this implies the fact that leaders should focus on
these areas and processes in order for their businesses to experience substantial
growth and have competitive advantage. Previous research within the field
conducted by Hancott (2005), Garcia-Morales (2009), Bass, Avolio and Jung et al
(2003) also pointed out that there is positive correlation between transformational
leadership and company’s performance. This also supports Dubrin’s (2010)
theory that Transformational Leadership is the leadership form that brings out
major positive change in the group, that eventually also positively affects firm’s
market performance. So it can be concluded from this study that strategic
management, employee motivation & commitment and organization culture are
positively correlated towards Transformational leadership and when combined
together they significantly contribute towards positive business performance.
Therefore it is suggested that in today’s world where the conditions and the
environment for companies constantly change and requires companies to evolve
it is important that Transformational Leadership is implemented, in order for
companies to transform, evolve, survive, grow and increase the shareholders
value. This can also be done using proper mentoring or training processes
provided for the leaders to ensure that their behaviors are beneficial to the
occurrence of the positive effects of transformational leadership. Kirkbride (2006)
provides a practical guideline of developing transformational leaders in an
organization. He advised that the leadership intervention by the organization is
important because of the potential benefits to the organization if there are
transformational leaders in the organization.

At last I would like to say that despite this investigation about transformational
leadership and their contribution to the performance in organizations one has to
remember the fact it is the people inside the organizations that do the job. Those
who actually work there and execute all the decisions should also receive credit.
Without them all the charisma is, if not worthless, at least not that important. So in
this sense it is a kind of mutual agreement where the leader is transformational
and charismatic while the employees accept and follow the leader and his/her
ideas and become committed and motivated. So it can be concluded that when
transformational leaders are connected with their followers great things can
happen. Together, the leader, his immediate team and the employees can
achieve a lot when implementing the formulated strategies, adopting new ways of
improved and efficient working and being committed and focused. All of these
combined together contributed positively towards organization business
performance.

67
13 Recommendations for Further Research
One of the first factors that can be put into consideration is to reach more
respondents and conduct more interviews then what I did.

Second can be conducting a research in third world markets or markets which still
haven’t recovered from global financial crises and see how transformational
leadership will perform during economic crisis.

Third can be conducting research on overall Ericsson not just a particular

Customer Unit or Region and see if Global management who believed that
transformational leadership is answer to current needs and challenges has really
helped to turn the tables for Ericsson with positive impact on Business
Performance.

Fourth interesting research can be to see how transformational leadership can

help a company more then 100 years old and presence in more then 180
countries do major changes in organization culture. Currently CU KSA Head and
management are still struggling to bring changes in organization culture globally
and during survey and interviews it was suggested by many that Ericsson needs
reforms in streamlining its processes and ways of working.

Firth interesting research can be to see how leadership can help mitigate
corporate corruption and how leadership will perform in countries polluted by
corporate corruption. It was learnt though this study that corporate corruption
culture is flourishing from different angles.

Sixth interesting research can be to analyze operator business segments e.g.

Voice, Data using Mobile broadband and fixed broadband, SMS, Corporate
connectivity, ISP connectivity, Cloud Services, Machine to Machine, Wi-Fi,
Roaming, Security, Mobile TV, Gaming, IPTV, Fiber to Home etc. It will be
interesting to see how much money is being spent on particular service and how
much revenue each service is generating. It will also be interesting to see how
the future for particular service looks like.

68
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14.2 Internet Resources

Wikipedia

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 http://en.wikipedia.org/wiki/Ericsson

14.3 Ericsson Internal Resources

Ericsson Strategy 2009-2013, March 2009 – Ericsson Confidential Document

Report MU KSA Score Card 2009 (2009)

Report RMEA Score Card 2010 (2010)

Report RMEA Score Card 2011 (2011)

Report RMEA Score Card 2012 Q1(2012)

MU KSA Sales Report 2009 (2009)

RMEA Sales Report 2010 (2010)

RMEA Sales Report 2011(2011)

RMEA Sales Report 2012 Q1 (2012)

Ericsson 2012 Q1 Sales Report (2012)

15 Abbreviations

2G 2nd Generation of wireless Telecommunication

3G 3rd Generation of wireless Telecommunication

CU Customer Unit

KAM Key Account Manager

KPI Key Performance Indicator

KSA Kingdom of Saudi Arabia

LTE Long Term Evolution (4th Generation of wireless Telecommunication)

MU Market Unit

NS Net Sales

OB Orders Booked

OPI Operating Income

QoS Quality of Service

RMEA Region Middle East

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RFP Request for Proposal

RFQ Request for Quotation

SMS Short Message Service

STC Saudi Telecom (Mobile Operator in Saudi)

Wi-Fi Technology for Wireless Local Area Network

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16 Appendix

16.1 Appendix A - Organization Structure

Figure 16: Ericsson Executive Management Structure

Figure 17: Ericsson New Regional Structure (Reporting to Executive

Management).

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Figure 18: Region Middle East Structure (Reporting to Regional Head).

77
Figure 19: Customer Unit Kingdom of Saudi Arabia Structure (Reporting to
Customer Unit Head).

Figure 20: Engagement Practice Region Middle East (Reporting to Engagement

Practice Head).

NOTE: For each area within Engagement Practice Ericsson has Heads per
Customer Unit. Customer unit head has line reporting to Engagement Practice
Head and functional reporting to Customer Unit Head.

CU KSA Head, all Local Engagement Practice Heads and Key Account
Managers (KAM) are part of Higher Management Team.

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16.2 Appendix B – Questionnaire
In order to accomplish my MBA masters degree, I would like to encourage you to
participate in the below questionnaire based on research on Transformational
leadership and its impact on Business Growth, Strategic Management,
Organizational Culture and Motivation & Commitment.

Below is brief description of the research topics.

Transformational Leadership - Transformational leader helps bring about major

positive changes by moving group members beyond their self interests and
towards the good of the group, organization or society.
Transformational leadership enhances the motivation, morale and performance of
followers through a variety of mechanisms thereby having an impact on
company’s business performance. Idealized Influence, Inspirational Motivation,
Intellectual simulation and Individualized Consideration are key attributes of
Transformational leadership. After recent company’s re structuring Ericsson’s
CEO’s view was to assign transformational leaders that can help company cope
with the changing market conditions with focus on business performance, growth,
new market segments and getting more close to customer. We will try to analyze
Ericsson’s CU KSA management as Transformational leaders.

Strategic Management - Strategic management is an on-going activity

concerned with strategy formulation, implementation and periodic evaluation in
line with changes taking place in both the internal and external environment. E.g
in Ericsson’s case emerging Chinese players, Declining Operator revenues etc
requires us to redefine our strategy. By answering below questionnaire we will try
to analyze if Transformational leaders play a significant role in Strategic
Management?

Organizational Culture - Organizational culture is generally seen as a set of key

values, assumptions, understandings, and norms that is shared by members of
an organization and taught to new members. E.g. Ericsson has been Telecom
leader since ages without any major competition. Due to this we never felt the
need for too much customer engagement. On the other hand Chinese and
American companies are very good in engaging and influencing. By answering
below questionnaire we will try to analyze if Transformational Leaders play a
significant role in evolving organizational culture.

Motivation and Commitment – Motivated and Committed employees help

organization achieve their goals. By answering below questionnaire we will try to
analyze if Transformational Leaders play a major role to help employees become
motivated and committed.

Business Growth & Performance – Business Growth & Performance are

related to yearly and quarterly financial results mainly for Net Sales, Margins and
Operating Income. By answering below questionnaire we will try to analyze if
Transformational Leaders play a major role in helping companies improve their
business performance.

Below questionnaire will be completely confidential and classified. Its sole

purpose is research and accurate results will contribute towards betterment of
mainly Ericsson CU KSA (in directly all of us) and overall Society so I’ll appreciate
if you can answer as truthfully as possible.

Responding time is one week.

79
Section A

INSTRUCTIONS: Please fill in following background information about yourself.

Respondent's Name :
Designation :
Company's Name :
Department :

Age 20-29 30-39 40-49 >50

Gender Male Female

Employment LTA STA Consultant Local

Work Experience <2 year 2-5 year 5-10 year >10

Section B

INSTRUCTIONS: Rate your current Customer Unit Head Ali Eid, on the items
below. When word CU KSA Management is used then it includes all CU KSA
Heads.

Use the following 5-point scale: 0 (not at all), 1 (once in a while), 2 (sometimes), 3
(fairly often), and 4 (frequently).

1 CU KSA Head has a clear vison and mission that he/she transmits to the team 0 1 2 3 4

2 CU KSA Head is always looking for new opportunities for organization 0 1 2 3 4

3 CU KSA Head knows about market trends ahead of time 0 1 2 3 4

4 CU KSA Management knows where company and Business is heading 0 1 2 3 4

5 CU KSA Head makes the team feel good around him/her 0 1 2 3 4

6 CU KSA Head Is an inspiration to the team 0 1 2 3 4

7 CU KSA Head makes everyone around him enthusiastic about work, task and results 0 1 2 3 4

8 CU KSA Head is a symbol of success and accomplishment 0 1 2 3 4

9 CU KSA Head is always acting as the company's leading force 0 1 2 3 4

10 CU KSA Management inspires the team with vison 0 1 2 3 4

11 CU KSA Head Is a model for the team to follow 0 1 2 3 4

12 Team members earn appreciation for doing good job by CU KSA Head 0 1 2 3 4

13 CU KSA Head Encourages new ideas and ways of working 0 1 2 3 4

14 CU KSA Head Encourages point of view of others 0 1 2 3 4

15 CU KSA Head Guides team what to do in order to be rewarded for efforts 0 1 2 3 4

16 CU KSA Head Gives the team positive feedback and recognize their achievements 0 1 2 3 4

17 CU KSA Management Encourages the team to be at their best and commited 0 1 2 3 4

18 CU KSA Head Encourages team to express their ideas and opinions 0 1 2 3 4

19 CU KSA Head Gives team freedom of decision making with guidance 0 1 2 3 4

80
20 CU KSA Head is supportive and gives contructive criticism 0 1 2 3 4

21 CU KSA Head has communicated a vision of the future that motivates entire team 0 1 2 3 4

22 I trust CU KSA management of Ericsson. 0 1 2 3 4

23 CU KSA Head has a special gift for seeing what is really important for the team 0 1 2 3 4

24 CU KSA Head Delegates work according to employee skills and experience 0 1 2 3 4

25 CU KSA Management Treats each subordinate individually 0 1 2 3 4

26 CU KSA Management has a clear Strategy inline with our Goals and Objectives 0 1 2 3 4

27 CU KSA Management has a clear implementation plan to implement our Strategy 0 1 2 3 4

28 CU KSA Management is innovative and constantly seek to improve our Strategy 0 1 2 3 4

29 CU KSA Management always put customer requirements first while devoping Strategy 0 1 2 3 4

30 CU KSA Management has a clear strategy how to beat competition 0 1 2 3 4

31 Management is committed to providing quality products and services to customers 0 1 2 3 4

32 CU KSA Management regularly use customer feedback to improve our strategy. 0 1 2 3 4

33 While dealing with customers management is in driving seat instead of being driven 0 1 2 3 4

34 CU KSA Management has a clear strategy how to beat Chineese competitors 0 1 2 3 4

35 CU KSA Management's Strategy helps Operator explore new market segments 0 1 2 3 4

36 CU KSA Management's Strategy helps Operator generate more revenues 0 1 2 3 4

37 Being 100+ years old company is Ericsson influenced by strong Organization Culture 0 1 2 3 4

38 Do we require a change in Organizational Culture 0 1 2 3 4

39 CU KSA management is evolving our Organizational Culture to achieve our goals 0 1 2 3 4

40 Positive Steps are being taken to enfore a change in Organizational Culture 0 1 2 3 4

41 I am committed to Ericsson and what it stands for. 0 1 2 3 4

42 I strongly believe in and support the future direction of Ericsson. 0 1 2 3 4

43 I feel respected and valued in my workplace at Ericsson. 0 1 2 3 4

44 My roles and responsibilities are clear to me. 0 1 2 3 4

45 I am overall satisfied with my job. 0 1 2 3 4

46 I am proud to say that I work for Ericsson. 0 1 2 3 4

47 Overall, I am extremely satisfied with Ericsson as a place to work. 0 1 2 3 4

48 I rarely think about looking for a new job with another company. 0 1 2 3 4

49 I would recommend Ericsson as a great place to work. 0 1 2 3 4

50 CU KSA Management keeps us movitated/commited by rewarding and appreciating us 0 1 2 3 4

51 CU KSA Management continiously evaluate our performance compared with our competitors 0 1 2 3 4

52 CU KSA company's market performance is better then competitors during last 2 years 0 1 2 3 4

53 CU KSA's sales has been better then last year 0 1 2 3 4

54 CU KSA has experienced substantial growth in Saudi Telecom Market Share 0 1 2 3 4

55 CU KSA is helping operators create new business opportunities/segments 0 1 2 3 4

81
16.3 Appendix C – Interview Guide for Questions with EP
Heads/KAM
Following interview guide was used while doing interview with Engagement
Practice Head in CU KSA along with Key Account Managers (KAM).

Vision

 CU KSA Head and Ericsson Management has a clear mission and vision

 CU KSA Head and Ericsson Management knows exactly where company

is heading and new market trends and business requirements

Inspiration

 CU KSA Head and Ericsson Management is an inspiration to the team

 CU KSA Head and Ericsson Management is symbol of success and

accomplishment

Role Model

 CU KSA Head is a model for the entire management team

Support for Personal Growth

 CU KSA Head guides team what to do in order to be rewarded and use

their energy and efforts in the right direction

 CU KSA Management team encourages and coaches the team to be at

their best and committed

Trust

 CU KSA gives Management Team freedom of decision making with

guidance

 During Higher Management Meeting, Management Team is encouraged

to share ideas and opinions

Consideration of followers needs

 CU KSA Head has a special gift for seeing what is really important for the
team

 CU KSA management treats each employee individually by providing

them right skill set of training and tools

Strategic Management

 CU KSA Head and Management has a clear strategy inline with our goals
and Objectives

 CU KSA Head and Management has a clear strategy to help Operator

create new business opportunities and enter new market segments to
overcome declining operator revenues

82
  CU KSA Head and Management has a clear strategy on how to beat
Chinese competitors

Organization Culture

 CU KSA Head believes we require a change in Organization Culture

where we need to be more pro active and engage with the customer more
then what we used to do in past

 CU KSA Head and Management believes that emergence of Chinese and

American players requires a major change in Ericsson behavior towards
customer where we need to simplify our process and be more responsive

Motivation and Commitment

 We are committed to Ericsson and what it stands for?

 We are proud to say that we work for Ericsson

Business Performance

 In last two years since new structure and new management took over our
business performance has improved

 In last two years since new structure and new management took over we
have explored new opportunities and targeted new market segments

 Our market share in CU KSA has increased in last two years

16.4 Appendix D - Contract Types

LTA = Long Term Assignment (1 year+ assignment contract for Ericsson
Employees)

STA = Short Term Assignment (3 months+ assignment contract for Ericsson

Employees)

Consultant = Non Ericsson Employees

Local = Local permanent contract for local Employees

16.5 Appendix E – Detailed Data Description (Respondent

Details)
Altogether, 58 survey forms were distributed, 49 were returned filled out, giving a
return rate of 84%. Out of these 49 eight were line managers/Heads and forty one
were their sub ordinates. Below figure has graphical representation of results.

83
 Total Response

8
16%

Manager
Subordinates

41
84%

Figure 21: Response based upon position of respondent within the firm

The age ranges of the majority of the respondents were those between the age of
30 and 39 with 53%. Second majority was age range between 20 and 29 with
37%. Third was age range between 30 and 49 with 8% while 50 plus was only
2%. Below figure has graphical representation of the results.

AGE

4 1
8% 2%

20-29
30-39
26 40-49
18
53% >50
37%

Figure 22: Response based upon age of respondent within the firm

In terms of gender, the percentage of males who answered the questionnaire was
92% with 45 respondents while the females were 8% with 4 respondents. Below
figure has graphical representation of the results.

84
 GENDER

4
8%

Male
Female

45
92%

Figure 23: Response based upon gender of respondent within the firm

In terms of contract type 35 were local employees making it 71%. 6 were LTA
making it 12%. 6 were on contract making it 12% while 2 were on STA making it
4% only. Below figure has graphical representation of the results.

EMPLOYMENT TYPE

6 2
12% 4%

8 LTA
16% STA
Consultant
33 Local
68%

Figure 24: Response based upon employment type of respondent within the firm

In terms of work experience 33 were having experience in range of 5-10 with

67%, 8 were with 10+ years of experience with 16%, 6 were with 2-5 years
experience with 12% and 2 where with less then 2 years experience with 4%
only. Below figure has graphical representation of the results.

85
 Work Experience

6 2
12% 4%

8 < 2 Year
16% 2-5 Year
5-10 Year

33 >10 Year
68%

Figure 25: Response based upon Work Experience of respondent within the firm

16.6 Appendix F – Detailed Data Description

(Transformational Leadership and its Attributes)
Total number of question related to attributes of Transformational leadership
along with total points (4 being a max per question), scored points, percentage,
means, standard deviations, and Skew are shown in table below:
QUESTION AREA

TOTAL POINTS

PERCENTAGE
Respondent 10
Respondent 11
Respondent 12
Respondent 13
Respondent 14
Respondent 15
Respondent 16
Respondent 17
Respondent 18
Respondent 19
Respondent 20
Respondent 21
Respondent 22
Respondent 23
Respondent 24
Respondent 25
Respondent 26
Respondent 27
Respondent 28
Respondent 29
Respondent 30
Respondent 31
Respondent 32
Respondent 33
Respondent 34
Respondent 35
Respondent 36
Respondent 37
Respondent 38
Respondent 39
Respondent 40
Respondent 41
Respondent 42
Respondent 43
Respondent 44
Respondent 45
Respondent 46
Respondent 47
Respondent 48
Respondent 49
QUESTION #

Respondent 1
Respondent 2
Respondent 3
Respondent 4
Respondent 5
Respondent 6
Respondent 7
Respondent 8
Respondent 9

STANDARD
DEVIATION
MEDIAN
SCORE

SKEW
MEAN
Q 1 2 3 4 2 3 4 2 3 4 2 3 4 2 3 4 3 3 3 3 4 3 4 4 4 4 4 4 2 2 4 2 3 4 3 3 3 2 2 3 1 4 2 1 3 3 4 1 3 4 196 147 75% 3.00 3.00 0.913 -0.514
Q 2 2 3 2 2 2 4 2 3 3 2 4 3 2 3 4 3 3 3 3 3 3 3 4 2 3 4 3 2 2 3 2 3 4 3 3 3 2 3 3 1 3 2 1 3 3 2 1 3 4 196 134 68% 2.73 3.00 0.785 -0.295
Q 3 3 3 3 2 3 4 2 3 4 2 3 4 2 3 2 3 3 3 2 2 3 4 4 4 2 3 4 2 3 2 3 2 4 3 4 4 2 4 3 1 4 2 3 3 2 4 2 3 4 196 144 73% 2.94 3.00 0.827 -0.114
Vision Q 4 2 2 4 2 3 3 2 3 3 2 3 1 2 2 4 2 4 4 3 2 3 2 2 2 4 3 2 2 2 3 2 3 3 1 3 3 2 0 3 1 1 2 1 3 3 4 3 3 4 196 123 63% 2.51 3.00 0.938 -0.267
Q 5 2 3 3 2 1 3 3 2 3 4 2 4 3 3 4 2 2 3 3 2 3 4 2 4 4 2 4 2 3 3 4 4 4 3 2 3 2 4 2 1 1 2 2 2 3 3 1 3 4 196 135 69% 2.76 3.00 0.925 -0.140
Q 6 1 3 4 2 3 4 2 3 1 2 3 4 2 2 4 3 3 4 4 3 4 2 4 3 4 4 4 3 2 2 3 3 4 3 3 3 3 2 3 3 3 2 3 3 3 4 3 3 3 196 146 74% 2.98 3.00 0.803 -0.465
Q 7 2 3 3 2 3 4 2 3 4 3 3 3 4 3 2 3 2 3 3 3 3 3 4 3 4 3 4 3 2 2 2 2 4 3 2 3 2 2 2 1 2 3 1 2 3 4 1 3 3 196 134 68% 2.73 3.00 0.811 -0.203
Q 8 3 3 4 2 2 4 2 3 4 2 4 4 2 3 3 3 2 3 4 2 3 4 4 4 3 4 4 3 2 3 2 3 4 3 3 3 2 3 3 2 1 2 1 3 3 3 2 3 3 196 142 72% 2.90 3.00 0.823 -0.273
Q 9 3 3 3 2 3 3 2 3 3 3 3 4 2 3 4 3 3 3 4 4 3 4 4 4 3 4 3 2 3 2 3 3 3 3 3 4 2 3 3 3 1 4 1 3 4 4 3 4 3 196 150 77% 3.06 3.00 0.747 -0.725
Inspiration Q 10 3 3 4 2 3 2 3 4 4 2 3 3 2 3 4 2 3 4 2 4 3 4 2 4 2 4 3 2 2 3 2 3 4 3 3 4 2 2 3 1 2 3 1 4 3 3 1 2 2 196 137 70% 2.80 3.00 0.889 -0.134
Role Model Q 11 3 3 3 3 3 4 2 3 4 2 2 4 2 3 4 3 2 4 2 3 3 2 2 4 2 4 3 2 2 3 4 3 4 2 3 2 2 3 3 2 1 2 3 3 2 4 0 3 4 196 136 69% 2.78 3.00 0.896 -0.438
Q 12 3 3 4 2 2 3 2 3 3 2 3 4 2 3 4 3 3 3 4 3 4 4 2 2 3 4 3 2 2 3 2 3 4 3 4 3 2 3 3 1 2 3 3 4 3 4 1 3 3 196 142 72% 2.90 3.00 0.797 -0.327
Q 13 4 3 3 3 4 2 2 4 2 3 4 2 3 4 2 3 3 3 3 3 4 2 3 4 4 4 4 2 3 2 4 3 4 3 2 2 2 3 3 3 2 2 2 3 3 3 2 3 3 196 144 73% 2.94 3.00 0.747 0.101
Q 14 3 4 3 2 3 3 3 4 2 2 4 2 3 4 2 3 4 2 3 3 3 3 3 4 2 3 4 4 4 4 2 3 4 3 4 2 2 3 3 1 3 2 2 3 3 4 2 3 3 196 145 74% 2.96 3.00 0.789 -0.191
Q 15 2 3 3 2 3 3 3 3 4 2 3 4 2 3 4 3 3 3 3 3 3 2 4 4 4 4 4 2 2 2 2 3 4 3 3 3 2 2 3 1 2 2 1 3 3 4 1 3 3 196 138 70% 2.82 3.00 0.834 -0.312
Support for Q 16 3 3 4 2 3 4 2 3 4 3 3 4 2 2 4 2 3 4 2 4 4 2 3 3 3 3 3 4 2 3 4 4 4 3 4 3 3 2 3 2 2 2 1 3 3 3 1 3 3 196 144 73% 2.94 3.00 0.827 -0.344
Personal Growth Q 17 2 3 3 2 3 3 4 2 2 4 2 3 4 2 3 4 2 3 3 3 3 3 4 2 3 4 4 4 2 3 2 3 4 2 3 2 2 2 3 1 2 2 2 3 3 3 2 3 2 196 135 69% 2.76 3.00 0.778 0.188
Q 18 3 3 4 3 4 4 2 3 4 2 3 3 3 4 2 2 4 2 3 4 2 3 4 2 3 3 3 3 3 4 2 3 4 4 4 3 2 2 3 1 1 2 1 3 3 4 1 3 3 196 141 72% 2.88 3.00 0.904 -0.455
Q 19 2 3 4 2 3 3 2 3 3 4 2 2 4 2 3 4 2 3 4 2 3 3 3 3 3 4 2 3 4 4 4 3 4 3 3 3 2 2 3 1 1 3 1 3 3 4 1 3 2 196 138 70% 2.82 3.00 0.882 -0.383
Q 20 2 3 2 2 3 4 2 3 4 2 3 4 2 3 4 3 2 3 3 3 3 4 4 3 3 4 2 2 4 2 3 4 2 3 4 2 3 3 3 3 3 4 2 3 4 3 4 3 3 196 147 75% 3.00 3.00 0.736 0.000
Q 21 2 3 4 2 3 3 2 3 4 2 3 3 4 2 2 4 2 3 4 2 3 4 2 3 3 3 3 3 4 2 3 4 4 4 3 3 2 2 3 1 2 2 1 3 3 4 1 3 3 196 138 70% 2.82 3.00 0.858 -0.248
Trust Q 22 2 3 3 3 3 4 2 2 3 2 3 4 2 3 4 2 3 3 3 3 3 2 2 3 4 4 4 2 2 2 2 3 4 3 3 3 2 2 3 1 1 3 1 3 3 4 1 3 2 196 132 67% 2.69 3.00 0.847 -0.215
Q 23 2 3 3 2 3 3 2 3 4 2 3 4 2 3 4 3 3 3 4 2 2 4 2 3 4 2 3 4 2 3 3 3 3 3 4 2 3 4 4 4 3 2 1 3 3 4 2 3 2 196 143 73% 2.92 3.00 0.786 -0.121
Consideration of Q 24 2 3 3 2 3 4 2 3 3 2 4 3 4 2 2 4 2 3 4 2 3 2 2 3 3 3 3 3 4 2 3 4 4 4 3 3 2 2 3 1 1 2 1 3 3 4 1 3 4 196 136 69% 2.78 3.00 0.896 -0.257
followers needs Q 25 2 3 4 2 3 3 2 3 4 2 3 3 2 3 3 4 2 2 4 2 3 3 2 3 4 2 3 3 3 3 3 4 2 3 4 4 4 2 3 1 1 2 1 3 3 4 1 3 2 196 135 69% 2.76 3.00 0.879 -0.258

Table 4: Detailed Statistical Results for Transformational Leadership attributes-

Percentage, Mean, Median, Standard Deviation and Skew

86
16.7 Appendix G – Detailed Data Description
(Transformational Leadership and its impact)
Total number of question related to Strategic Management, Organization Culture,
Motivation & Commitment and Business Performance along with total points (4
being a max per question), scored points, percentage, means, standard
deviations, and Skew are shown in table below:
QUESTION AREA

TOTAL POINTS

PERCENTAGE
Respondent 10
Respondent 11
Respondent 12
Respondent 13
Respondent 14
Respondent 15
Respondent 16
Respondent 17
Respondent 18
Respondent 19
Respondent 20
Respondent 21
Respondent 22
Respondent 23
Respondent 24
Respondent 25
Respondent 26
Respondent 27
Respondent 28
Respondent 29
Respondent 30
Respondent 31
Respondent 32
Respondent 33
Respondent 34
Respondent 35
Respondent 36
Respondent 37
Respondent 38
Respondent 39
Respondent 40
Respondent 41
Respondent 42
Respondent 43
Respondent 44
Respondent 45
Respondent 46
Respondent 47
Respondent 48
Respondent 49
QUESTION #

Respondent 1
Respondent 2
Respondent 3
Respondent 4
Respondent 5
Respondent 6
Respondent 7
Respondent 8
Respondent 9

STANDARD
DEVIATION
MEDIAN
SCORE

SKEW
MEAN
Q 26 2 3 4 2 3 4 2 3 4 2 3 4 2 3 4 3 3 3 3 3 3 3 4 4 4 3 3 4 2 2 4 2 3 4 2 3 4 2 3 3 3 3 3 4 2 3 4 4 4 196 152 78% 3.10 3.00 0.743 -0.167
Q 27 2 3 3 2 3 4 2 3 3 2 3 3 2 3 4 3 3 3 4 2 2 3 2 3 4 2 3 4 2 3 3 3 3 3 4 2 3 4 4 4 1 3 1 3 3 4 1 3 4 196 141 72% 2.88 3.00 0.832 -0.440
Q 28 3 4 3 2 2 3 3 3 3 3 3 4 2 3 3 3 3 3 3 2 3 3 4 4 4 4 4 2 2 2 2 3 4 3 3 3 2 2 3 1 2 2 1 3 3 4 2 3 3 196 139 71% 2.84 3.00 0.773 -0.269
Q 29 2 3 4 2 3 3 3 4 4 2 2 4 2 3 4 2 3 4 2 3 3 3 3 3 4 2 3 4 4 4 2 3 4 3 3 3 2 2 3 1 2 2 1 3 3 3 1 3 2 196 138 70% 2.82 3.00 0.858 -0.248
Q 30 2 3 3 2 3 4 2 3 4 3 3 3 2 3 4 3 3 3 3 3 3 3 3 4 2 2 4 2 3 4 2 3 4 2 3 3 3 3 3 4 2 3 4 4 4 4 2 3 2 196 147 75% 3.00 3.00 0.707 0.000
Q 31 2 4 3 2 3 4 2 3 3 2 4 4 2 3 3 4 2 2 4 2 3 2 2 3 4 4 3 3 3 3 3 4 2 3 4 4 4 2 3 1 2 2 1 3 3 4 1 3 2 196 139 71% 2.84 3.00 0.898 -0.205
Q 32 2 3 4 2 3 3 2 3 3 4 2 2 4 2 3 4 3 3 3 3 3 3 4 3 3 4 2 3 4 4 4 3 4 3 3 3 2 2 3 2 2 3 2 3 3 3 2 3 3 196 144 73% 2.94 3.00 0.689 0.080
Q 33 2 3 3 3 3 3 2 2 4 2 3 3 3 3 4 2 3 3 3 3 3 4 2 3 4 3 4 2 2 2 2 3 4 3 3 3 2 2 3 1 1 2 1 3 3 4 1 3 3 196 133 68% 2.71 3.00 0.816 -0.376
Q 34 2 4 4 2 3 3 3 3 3 4 2 2 4 2 3 4 2 3 4 2 3 3 3 3 3 4 2 3 4 4 4 3 4 3 3 3 2 2 3 1 3 2 1 3 3 3 2 3 3 196 142 72% 2.90 3.00 0.797 -0.327
Strategic Q 35 2 3 2 2 3 4 2 3 4 2 4 4 2 3 4 3 3 3 4 2 2 2 2 3 4 2 3 4 2 3 3 3 3 3 4 2 3 4 4 4 3 2 1 3 3 4 1 3 3 196 142 72% 2.90 3.00 0.848 -0.228
Management Q 36 3 3 4 2 3 4 2 3 3 2 3 3 2 3 4 3 3 3 3 3 4 2 2 4 2 4 4 2 3 4 2 3 3 3 3 3 4 2 3 4 3 4 1 3 3 3 2 3 4 196 146 74% 2.98 3.00 0.750 -0.276
Q 37 2 4 3 2 4 2 2 4 2 3 4 2 3 4 3 3 3 3 2 3 4 2 3 4 3 4 4 2 2 2 4 3 4 3 3 4 2 2 3 2 4 2 2 3 3 4 4 4 2 196 146 74% 2.98 3.00 0.829 0.039
Q 38 4 3 4 2 2 4 2 3 4 2 3 4 4 3 3 2 2 3 4 2 3 3 4 2 3 3 4 3 3 4 4 3 4 3 3 3 2 3 3 2 1 4 2 2 2 3 2 3 4 196 145 74% 2.96 3.00 0.815 -0.164
Organizational Q 39 2 3 3 2 3 3 2 2 3 3 3 3 2 2 3 4 2 2 3 2 2 3 2 3 2 2 3 3 3 2 2 3 3 3 3 3 3 3 3 2 1 2 2 3 3 2 3 2 3 196 126 64% 2.57 3.00 0.577 -0.290
Culture Q 40 2 3 3 2 3 3 2 3 3 2 3 3 2 3 3 3 3 3 3 3 3 3 2 3 3 3 3 3 3 2 2 3 3 2 3 3 2 3 3 2 3 2 2 2 3 2 2 2 2 196 129 66% 2.63 3.00 0.487 -0.568
Q 41 2 3 3 2 3 4 2 3 4 2 3 4 2 3 4 3 3 3 3 3 3 4 2 2 4 2 3 4 2 3 4 2 3 3 3 3 3 4 2 3 4 4 4 3 3 4 1 3 4 196 148 76% 3.02 3.00 0.777 -0.314
Q 42 2 3 4 2 3 3 2 3 3 2 3 4 2 3 3 3 2 3 4 4 2 2 4 2 3 4 2 3 4 2 3 3 3 3 3 4 2 3 4 4 4 2 1 3 3 3 2 3 3 196 142 72% 2.90 3.00 0.770 -0.106
Q 43 4 3 2 2 3 4 3 3 4 3 3 3 3 4 2 2 4 2 3 4 2 3 4 2 3 3 3 3 3 4 2 3 4 4 4 3 2 2 3 1 1 2 1 3 3 4 1 3 3 196 140 71% 2.86 3.00 0.890 -0.449
Q 44 3 2 3 2 3 2 2 4 4 2 4 3 2 3 4 3 3 4 2 2 3 2 3 4 2 3 4 2 3 3 3 3 3 4 2 3 4 4 3 1 1 2 1 3 3 4 3 3 3 196 139 71% 2.84 3.00 0.850 -0.311
Q 45 2 3 4 2 3 3 2 3 3 3 3 3 4 2 2 3 2 3 4 2 3 2 2 3 3 3 3 3 3 2 3 4 3 4 3 3 2 2 3 1 1 2 1 3 3 3 1 3 3 196 131 67% 2.67 3.00 0.774 -0.473
Q 46 3 3 4 2 3 4 2 3 3 2 3 3 3 3 4 2 2 4 2 3 4 2 3 4 2 3 3 3 3 3 4 2 3 4 4 4 2 2 3 2 2 2 2 3 3 4 2 3 2 196 141 72% 2.88 3.00 0.754 0.208
Q 47 2 3 3 2 3 2 4 3 4 2 3 4 2 3 3 3 2 3 4 3 3 3 3 4 2 2 4 2 3 4 2 3 4 2 3 3 3 3 3 4 2 3 4 4 4 4 2 3 4 196 148 76% 3.02 3.00 0.750 -0.034
Q 48 2 4 4 2 3 4 2 3 4 3 4 3 3 3 3 2 2 2 3 3 4 2 3 4 2 3 3 3 3 3 4 2 3 4 4 4 2 2 3 1 1 2 1 3 3 3 2 3 2 196 138 70% 2.82 3.00 0.858 -0.248
Motivation & Q 49 4 3 4 2 3 3 3 3 3 2 3 4 2 3 4 3 4 4 2 2 4 3 3 4 2 3 4 2 3 3 3 3 3 4 2 3 4 4 4 2 2 2 2 3 3 4 3 4 4 196 151 77% 3.08 3.00 0.759 -0.139
Commitment Q 50 3 3 4 2 3 4 3 3 4 3 4 2 2 4 2 3 2 2 3 2 3 3 3 3 4 3 4 2 3 4 4 3 4 3 3 3 2 2 3 2 3 2 3 3 3 3 2 3 3 196 144 73% 2.94 3.00 0.689 0.080
Q 51 3 2 3 2 3 2 2 3 3 4 2 2 4 3 3 4 2 3 4 2 3 3 4 3 3 4 2 3 4 4 4 3 4 3 3 3 2 2 3 1 3 2 1 3 3 4 1 3 4 196 141 72% 2.88 3.00 0.857 -0.378
Q 52 4 3 4 2 3 4 2 3 4 2 4 3 3 2 2 4 4 2 3 4 4 3 2 2 3 4 3 3 3 4 4 3 4 3 3 4 2 2 3 3 2 2 3 3 3 3 3 3 4 196 150 77% 3.06 3.00 0.747 -0.101
Q 53 4 3 4 2 3 4 2 4 4 3 3 3 4 2 4 3 2 3 4 2 4 2 4 4 3 3 3 3 4 4 3 4 4 4 3 2 4 2 3 2 1 4 3 3 3 3 2 3 4 196 154 79% 3.14 3.00 0.816 -0.513
Business Q 54 2 2 2 2 3 3 2 2 2 2 3 2 3 3 2 3 2 2 2 3 2 2 3 4 2 3 3 3 3 3 2 2 3 2 2 3 2 2 3 3 2 2 1 3 3 2 1 3 2 196 118 60% 2.41 2.00 0.610 0.079
Performance Q 55 3 3 4 2 3 4 2 3 4 2 3 4 2 3 3 3 2 3 2 2 3 2 2 2 4 2 3 4 2 3 3 2 3 3 3 3 3 4 2 1 4 4 4 3 3 4 1 4 4 196 142 72% 2.90 3.00 0.848 -0.228

Table 5 : Detailed Statistical Results for Transformational Leadership impact -

Percentage, Mean, Median, Standard Deviation and Skew

87