The Effect of The Relationship Between Salaries Broadband Techniques On The Employees Motivation V4

The Effect of the relationship between salaries broas-band technique on the employees motivation and performance in Egyptian Organizations
Faculty oI Management Technology

Research Methodology
The eIIect oI the relationship between salaries broad band technique on the employees
motivation and perIormance in Egyptian organizations

Rehab Elsawy (S1000263)

Supervisor: ProI. Dr. Ahmed Amin
Teaching Assistant: Dr.Raghda El-Ebrashi

November, 27
th
, 2010

Table of Contents
1. Introduction................................3
2. Literature Review...............................4
2.1 Leadership Theories..............................4
A Leader Vs A Manager..........................5
Required skills Ior a leader..........................6
2.2 Transformational leadership..........................6
DeIinition oI TransIormational Leadership....................6
TransIormational leadership Iactors.........................7
EIIect oI TransIormational Leadership Iactors on Job PerIormance..............9
2.3 Transactional leadership............................10
Transactional Leadership Factors........................10
2.4Comparison between leadership styles Impact on enhancing 1ob Performance.......11
Leadership Style & Gender........................13
2.5Research Gap...............................15
3. Methodology................................15
4. Conclusion................................19
5 References..................................22


bstract
This study was made used the quantitative deduction method, where the employees
motivation and perIormance , were assessed in the research Ior their level , aIter applying a
salary broad band techniques in an organization , versus other organization were they don`t
have a salary broad band technique .In summary the results showed that the employees are
highly perIormance , associated with high level oI motivation in the company that applies the
broad banding techniques , Moreover ,it was proven that there is a direct relation between
employee motivation and perIormance in the company were they apply this type oI
techniques , and raises their level oI productivity with proIitability .


The effect of the relationship between salaries broad band technique on the employees motivation and
performance in Egyptian organizations
In the early twentieth centuries, employees were badly treated and were taken Ior granted,
however; by the time trade unions took place and employees started asking Ior their rights and human rights
laws gave the labor its Iull right in accepting and reIusing and striking, employees started to be more oI a
cost on the organization iI not well managed.
It has been believed Ior centuries that well educated employees should be treated
better and paid higher and more important Ior a company than craItsmen. However; today all
employees are equally important to a company, they all get training courses and they all
should take their rights, to be able to maintain the quality oI their production.
Nowadays , it became more and more important to the human resources department to Iocus
their attention on the employees, regarding them as one oI the main elements in any
organization and concerning their direct impact on the organization's perIormance,levels oI
productivity,competing in the market and quality oI products. InIect , this approach could be
applicable in all business Iields and in all sectors such as industrial , commercial
,telecommunication and banking.Hackeett and McDermott, 1999, P.170) had notice one oI
the major consecoweces related to the broad banding , is linking the employees payment
with their diIIerent knowledge ,and skills.
There is a positive relationship between salary broad banding techniques ,with high
perIormance and high job satisIaction, thereIore employees should be properly managed to
become eIIective enough. This is why broad-band techniques is crucial Ior the success oI a
company. A good salary broad band techiques helps the employee`s to the company`s main
path, provides them with both, suitable positions and with comIortable environments to

perIorm better.
Studies and researches started taking place in 'the new broad-banded system Iield by
the 1900s, the initiators oI such development in this area were Milkovich & Newman 2002,
by determine , what is the impact oI the new broad banded system , on internal equity ,
motivation, perIormance and employee salaries .
Moreover , it was published in the HR Iocus , 2000 , that starting Irom 1990s the
number oI organization implementing broad banding started to increase Irom 10 oI Iirms
surveyed in 1993 to 23 in 1999 , as it continues to be an inportant strategy oI interst to
leaders how look to improve organizational perIormance .
Hunt, Kangiel , in the early 1997s had state that a lot oI organizations had
implemented the salary broad-banding techniques using a salary structure icluding diIIerent
level oI pay grades , that also aIIect the perIormance oI the employees in developing
countries such as Egypt; which is considered to be an attractive developing market that
attracts the management oI every organization.
This paper will demonstrate the impact oI the salary broad system on the employees
motivation and PerIormance at Work Place in Egypt. The purpose oI this paper is to Iigure
out the main results oI applying a salary broad band system on the employee to examine the
consequences oI the system to the employees motivation and the perIormance , to imporve
the organization productivity and proIitabilty.
The paper include`s oI three main sections. The Iirst section gives an overview on
salary broad band technique in general as it clariIies the diIIerent types oI broad band and
their diIIerent Iunctions. The second section would be the methodology and eIIect oI each oI
the salary braod band techniques along with the diIIerent organization s eIIect in the

perIormance at work place. The third section is probably the most important section oI the
paper as where we Iind out the results and the conclusions Ior the methodology carried.

Literature Review
This literature review will be discussing the relationship between organizations
which had adopted the salray broad-banding system techniques and methodologies , and
their eIIect on the employees motivation and perIormance , aIIecting the company
productivity level .Finally , it will be comparing between the diIIerence in the organization
were they applies a salary broad band system , and the organization were they don`t applies
the same system , and which is more suitable to be applied in the new developing markets
such as Egypt.
1. road -and System
road band system and styles research were initiated earlier in the twentieth century.
Previously salaries method were not exiciting, employers back then , were they are suIurring
Irom hierarchical pay structure . and they don`t know what to do .(Martocchio,2001) has
identiIy in he last research`s conducted in the Iederal government , that borad banded
structurs include higher compensation cost than the old pay structures systems.
2- road and DeIinition
road banding mainly merges two salary levels into a Iew bands however with a
larger salary range, with maximum boundary and a minimum boundary with no midpoint
Milkovich & Newman 2002). To implement broad banding Iirst, organization should have
a number oI 3 to 8 wide bands replaces the pay grade reuired to be changed. Managers then

have to decide how much the employees in the same band (with diIIerent Iunctions in the
organization) will be paid. Sometimes employees in same band can be paid diIIerently and by
that managers are reuired to establish diIIren pay rates Ior diIIerent job Iamilies in a band
according to market rates.
A challenging question arises, will managers implementing the broad banding strategy will
innovate the pay structure? Or will it be a downsized version oI the traditional system just
multilevels with same problems.
Importancy oI the road and :
Peters (1994) mentioned in his article that in a 1994 survey examined the reason behind why
do organization are willing to implement broad banding. 71 responded Ior having a Ilatter
organization, 57 career development, 55 decrease administrative eIIorts and job
evaluation.
Theoretical ackground
Ioma , ( 1999) , had identiIied earlier studies in 1999 by Hay Associates and in 1998 by the
American Compensation Association/Hewitt Associates Iound that broad banding is most
eIIective when it is used to support changes in culture or structure , the organization has
current market data to price jobs competitively , and managers understand it clearly that
aIIect the employees motivation and perIormance .
Leaders , in companies that have applies broad banding , had comIired the great Ilexibility in
mangening their manpower , iI they can transIer employee more readily in all department
within the compnay without the constraints oI smal jobs deIintion and the restrivtive pay
grades and level .

Cappelli (2000), noticed that a number oI authors have assured that broad banding has
advantages Ior employers as well as the employees. Moreover results oI the restructuring
strategies in organization can be misleading iI the broad banding is implemented in presence
oI a reIorming strategy such as downsizing.
The results demonstrated that applying the salaries broad banding system , mutually support
the employee motivation , reIlect on the organization level oI production , quality , increased
the company market share , lead to increasing the company proIitability. With respect to
business level perIormance, Salary broad banding tend to have better return on evestment ,
but no relationship was Iound with respect to either stock return or sales growth.
Problems with borab-band application
Motivational problems may arise ,when broad banded pay system is implemented as
managers gain a lot oI Ilexibility in determining the payments, so iI managers didn`t use a
non biased, reliable and competent manner in their decision making process oI the payments
and the percentages increase oI payments as well. This subject is very sensitive and it only
needs one or two managers miss using the broad banding to their personal goals to
manipulate employee motivation and cause motivational problems. On the other hand it
seems impossible Ior the organization to keep track oI job evaluation and monitor internal
euity, as due to that diIIiculty they implemented that system.
The lack oI control mechanisms inherent in many broad-banded pay systems can lead to
dissolution oI the system in the long run. Many organizations end up creating zones within
the bands to enable managers to know where to place jobs Milkovich (2002).
In eIIect, the new zones create new pay grades within the bands, thereby negating one oI the
main purposes oI broad bandingto reduce the number oI pay levels. When this occurs, what
is the real diIIerence between the old, more hierarchical pay structures with more pay grades

and the so-called new broad-banded approach?

Some critics oI traditional job-based pay systems have argued that they do not reward
employees Ior lateral moves that lead to cross-Iunctional learning or learning to do one`s job
better Lawler, 2000). Should people be paid more Ior lateral moves iI their accountabilities
are no more signiIicant to the organization? II the lateral move results in learning to do one`s
job better, the employee could be paid more because oI improved perIormance, assuming the
perIormance appraisal system diIIerentiates perIormance properly.

Ioma ,(1999), had identiIy that the impact oI Iewer promotional motivational problems may
arise when broad banded pay system is implemented as managers gain a lot oI Ilexibility in
determining the payments, Managers are apt to be more sensitive to the probability oI higher
turnover in a broad-banded pay system in which some employees may be more likely to leave
because oI the lack oI promotional opportunity. Managers may react by granting merit pay
increases even more Ireely than in a traditional pay system, making the leniency eIIect in
perIormance appraisal even more pronounced.
Motivation Relationship with broad band
Motivation Influence
Employees in such organizations are likely to be motivated signiIicantly by career
development programs that will make them more marketable . II the broad-banded pay
system encourages employees to develop wider skills, it would help managers implement job
enlargement or enrichment programs to make the work more challenging and interesting,
especially iI the work system is changed to a team orientation .The broad-banded system

would de-emphasize structure and control and place greater emphasis upon judgment and
Ilexible decisionmaking Ior managers .Mondy & Noe (2002).
Moreover, organizations that need a new path oI development and improvement by
their innovation and creativity Iollow the salary broad band system . They also produce a
high motivation cycle between all organization members, Irom managers and employees
providing a complete organizational change; utilizing the organization resources and
capabilities in their new vision and route to a higher level oI ideal image. Moving on to the
next section we will talk about the Iour inIluencing Iactors oI salary broad band technique

Performance Influence
PerIormance is oI equal importance as motivation inIluence, road-anded pay ranges
provide more opportunity Ior upward movement in pay with invreses less constrained by
salary range maximums. This Ilexibility should provide an opportunity Ior managers to grant
more signiIicant pay increases to increase motivation . Less cases in which a manager will
have to tell employee that the pay increase would have been higher iI the employee were not
at the top oI the pay range should occur. In the large organization that had implemented
broad banding , senior management reported that they received more thoughtIul
recommendations Ior promotions because managers did not need to promote people to get
raise simply because they were at the band ceiling .Tyler 1998)
Turnover Influence
The trunover is the third Iactor oI the broad band method, as organization are
rewarding individual employees .A moajor implication Ior total cash , as it based on the
skills , knowledge and capabilties oI the employees rather than other organization pay Ior the

same job ( Hackett and McDremott , 1999) . were reIlect on reducing the organization turn
over rate .
Productivity Influence
Individualized consideration is the last aIIecting Iactor in the broad band method, it`s
where the mangers takes into consideration his/her employees level oI maturity and extend oI
their ability to see their Iurther developing areas. He starts working as guidance, giving
comments and Ieedbacks to support and motivate their employees , which raise their
productivity level , that lead the company to more proIitabilities . Their main scope lies in
developing strategies to develop their employes individually to increase their quality,
perIormance, and creativity (Yukl, 2008).
Effect of broad band system on organization profitabilty
road and Iactors discussed above were Iound to have a signiIicant inIluence on both
motivation behaviors and employee job satisIaction, since it was Iound that the Iormer Iactor
acts as mediators to boost employee`s satisIaction and perIormance in return. It is suggested
that motivation behaviors should be integrated with perIromance to increase employee
satisIaction since they were Iound highly dependent on broad band system to support the
organization productivity , that reIlect an increase in the organization proIitabilties .

NEED SOURSEC
resources, and technology in group goal achievement, which helps to increase
satisIaction (Yukl, 2008).
Importance was placed on the eIIect oI TransIorms approach and on how employees`
job satisIaction aIIects in the reduction oI the company`s internal costs, which, in return

increases the competitive advantage. For example, with the vast changes the global market is
experiencing, TransIormers can provide the appropriate vision, mission, and goal Ior
employees to help them respond to the dynamic and competitive environment eIIiciently
(ass, 1985).
TransIormers were described as charismatic individuals with whom employees relate
to emotionally. Thus, such leaders can provide the employees in an organization by a vision
which will help bring the employees to unite and accomplish goals. ThereIore, transIorming
leaders were associated with satisIaction: the transIormational leader can motivate employees
to perIorm ahead oI the general expectations and will also recognize the need Ior adaptive
organizational change (Yukl, 2008).
Accordingly change oriented actions taken as a reaction to active external events
should result in embracing new oI innovative strategies. This is crucial Ior employee`s job
satisIaction, since TL helps employees react positively to change. Researcher`s results also
indicated that TL can highly aIIect both interaction behaviors and job satisIaction through its
4 main Iactors; inspiring through charisma, meeting emotional needs through individualized
consideration, intellectually stimulating by an awareness oI problems and insight into
problem solving (Yang, 2009).
2.3 Transactional Leadership
Transactional leadership is the second theory we will be discussing in this chapter. We
will be starting oII by the deIinition and explaining its two motivating Iactors; extrinsic and
intrinsic motivation approaches, and will end by the eIIect oI the transactional leadership on
the working environment and its employee`s satisIaction and their perIormance as a result.
Transactional Factors

Transactional leadership works through creating 'clear structures whereby it is clear

what is required oI their subordinates, and the rewards that they get Ior Iollowing orders.
Punishments are not always mentioned, but they are also well-understood and Iormal
systems oI discipline are usually in place (Horwitz, Kamoches & Chew, 2002. P.1013).
Such leadership existed Ior centuries and it has aIIected too many leader-Iollower
relationships, where they both have a psychological contract, knowing that neither oI them
will break the contract. It is mostly described as a social exchange leadership style; where
managers try to alter their employees` attitudes by creating a trading system between them,
which basically relies on exchanging mutually beneIicial achievements (Smith, Kendall &
Hulin, 1975).
Even though transactional leaders enjoy having a lot oI privileges oI authority and
inIluence; they also give employees beneIits that are extrinsic and intrinsic. Extrinsic
motivation is when a person is motivated by external Iactors, as opposed to the internal
drivers oI intrinsic motivation. Extrinsic motivation drives oneselI to do things Ior tangible
rewards or pressures, rather than Ior the Iun oI it. Leaders oIIer rewards to employees when
they achieve their objectives at a satisIactory level, where as punishment takes place iI their
perIormance turned out to be unsatisIactory. That occurs by monitoring the employees`
perIormance. Although transactional leadership proved its eIIectiveness since centuries, in
the ever-changing demands, it proved to be the most diIIicult to be sustained, as
organizations always seek to compete globally (Reveurs et al, 2008; ass, 1990; Lisa et al,
2009).
According to urns (1990), it`s the kind oI leadership based on transactions between
leaders and Iollowers is proIit-oriented and based on exchanging beneIits. On the other hand,
the aim oI this leadership style is more than meeting immediate needs. urns stresses on that

these leaders seek Ior the Iollower`s motivation and encouragement (Jandaghi, Matin &
Farjami- Cacioppe, 1997).

2.4 Comparison between leadership styles Impact on enhancing 1ob
Performance
TransIormational and transactional leadership were discussed throughout this
literature review, to Iinally analyze which has a better eIIect on increasing employee`s job
satisIaction and as a result reIlecting on enhancing their perIormance and help provide them
with a better working environment, Iull oI cooperation, selI recognition, help develop inside
the subordinates the sense oI belonging, and loyalty, which will eventually help them link
between their own objectives to those oI the company`s.
As we mentioned earlier by Smith (1975) job satisIaction is generally deIined as an
employee`s aIIective reactions to organization it was suggested that satisIaction be a common
indicator oI organizational leadership eIIectiveness. Job satisIaction is what employees Ieel
towards their jobs in general. It`s a combination oI structures oI the work climate, beneIits
gained, wages taken, the style oI supervision, and relationship with colleges. A lot oI
organizational researches showed that employees who witness job satisIaction is more
productive and organization witness low turnover rate. One way oI providing employees with
satisIaction is through inspirational motivation that is provided by the transIormational
leaders (Dirani, 2009).
Job satisIaction was also psychologically deIined as 'the pleasure or positive
emotional state resulting Irom the appraisal oI one`s job or job experience. (Yang, 2009.
P.1260) This explains why organizations and managers started pointing to the importance oI
job satisIaction. Numerous researches were made to determine the eIIect oI job satisIaction

on the perIormance and the success oI any organization. Which in return most oI them
explained how directly and strongly job perIormance depends on job satisIaction; proving the
vitality oI motivation and the individual consideration provided by the transIorming leaders
(Yang, 2009; PodsakoII et al, 2003).
Other researchers added that job satisIaction is a crucial Iactor Ior improving
employee`s sense oI perIormance and helps them take their leaders as role models, which in
return helps them in relating themselves to the company, and taking its targets as there`s
(Jandaghi, Matin & Farjami- Cacioppe, 1997).
It was stated by Goldstein and Rocharch (2000) in their research that the variety oI
skills, clear identiIication, the importance and independency oI each task also the proper
Ieedback, were all highly correlated Ior the success oI the process oI job satisIaction, while
ambiguity and conIlict oI tasks and jobs were negatively related to job satisIaction. However,
the research Iound that the sense oI independency oI an employee in doing their job, to be the
mostly related variable with satisIaction (adran, 2008).
ased on previous TransIormational Leadership studies, it was suggested that TL
behaviors help encourage employees to work beyond their normal responsibilities to improve
Iirm prosperity while increasing general employee job satisIaction and boost their
perIormance as a result (ass, 1985).
It was believed that transIormational leadership is superior to transactional leadership.
As transIormational leaders are highly qualiIied, creative motivators and with their high
morals and ethics, they suite the markets needs now a days. TransIormational leaders are
described to be charismatic and socially intelligent, which gives them all the needed aspects
to attract their employee`s attention, gain their trust, serve them with the sense oI urgency
each oI the in their jobs and improve their communication to bring their objectives in the

same lane as oI the company`s, which will eventually lead to better inIluence and longer
impact on their perIormance. TransIormational leaders are also known to be very creative to
adapt with constantly changing markets, which gives them the edge oI continuously Iinding
new ways to lead, satisIy and improve their employee`s perIormance. TransIormational
leadership gives the sense oI importance, worthwhile, and shows more investment to their
subordinates, while Transactional leaders will appear to be selI-attraction and controlling
over their Iollowers, more oI centralized management style, and carrot and stick policy oI
Iollowing the company`s rules. However, we can never deny that there are certain craIts and
industries that could not be led unless by transactional mangers, but still not as much
(McNeese-Smith, 1997).
Moreover, two constructs has a common Ieature, which is motivation. Goleman (1995)
Iound motivation to be the one trait that practically all successIul leaders have. Those who are
encourage themselves as well as their subordinates to achieve beyond expectations. It is also
a Ieature that perIectly describes transIormational leaders. It was Iound that transIormational
leaders use motivation better into communicating higher prospect to their subordinates.
Leadership is also Iound to be positively related to the leader`s selI-conIidence, passion, selI-
control, the extent to which they can handle conIlicts and deal with stressIul situations, which
turned out to be crucial Ieatures needed Ior the presence oI emotional intelligence (Reuvers et
al 2008).
Leadership Style & Gender
The relationship between the leadership style and gender type is another crucial Iactor
that was thought to have a strong impact eIIect on the employees. Some researchers believed
that there was no gender diIIerences Iound Ior transIormational leadership achievements oI
male versus Iemale leaders. The recent studies showed that as Iar as leadership style might go

males are as good as Iemales in the transIormational leadership style. Previous research on
this subject has revealed ambiguous Iindings. However, Carless (1998) and some other
researchers Iound that Iemales tend to be better transIormational mangers than males. While
others strictly conIirmed that there was no diIIerence between men and women in inIluencing
their subordinates by any means on these dimensions (adran & KaIaIy, 2008).
Women were Iound by other researches to be more accepted as leaders due to the strong
resemblance between the transIormational leadership and Ieminine Ieatures. However, the
stereotypical Ieminine Ieatures are still controlling them and even though these qualities are
similar with transIormational leadership`s which are Iound to be more eIIicient, the
researchers declared that Iemales still do not possess the best public leaders. Moreover, it was
proven that transactional leaders oI men who have several years oI experience are in charge
oI the most oI the leadership positions (Rosener, 1990).
On the other hand, male leaders were Iound to have higher transactional behaviors
than Iemales. Accordingly men leaders are similarly described as Iemale leaders in
conditional rewards and dynamic management, except that men are signiIicantly higher than
Iemale leaders in reIlexive management. Moreover, transactional leader`s subordinates gave
negative response concerning their satisIaction towards their management (Powell et al,
2004).
Rosener (1990) concluded that Iemale leaders engage more in transIormational
behavior and less in transactional behavior than males. Females may be perceived as having
higher amounts oI transIormational behavior due to media`s exposure and stress on the sex
diIIerences in Iundamental leader`s behaviors and associating it more with Iemales. On the
other hand, males were perceived to have more oI the transactional behavior because oI the
'command and control style that were accompanied by their leadership styles, they are

depend in their relationship with their subordinates to be Iramed in the transactional

leadership Irames, without regards to whether this relation is Iocused on which type oI
perIormance, good or bad.
2.5 Research Gap
While going through the literature oI leadership, too many limitations and gaps were
Iound. Each oI the researchers had a look on the topic Irom a narrow perspective due to the
limitations researches usually Iaced. Some were Iocused on the deIinitions, others on the
Iactors and their eIIect on one oI too many aspects, without taking into consideration the
others.
This literature review helped me discover that one oI the main gaps is that this
research needs to be applied on the Egyptian market. Egypt became one oI the most dynamic
markets worldwide, where too many multinational projects penetrated its market, changing
the employee`s objectives, raising their expectations and improving their level oI
perIormance. In the early 1990`s employees were only treated by the transactional theory,
which did work but it was only until the new technologies and the new companies with their
new approaches and higher, competitive beneIits came in place. Employees today in Egypt
became more aware oI their rights and oI their possible opportunities.
Moreover, most oI the results discussed the eIIect oI both the transactional and the
transIormational leadership`s eIIect, but Iew oI them actually proved which is better in
relation to the gender type oI the leader, how and what would each method needs to succeed.
1. Methodology
Thesis Statement

The purpose oI this proposal is to examine the eIIect oI transactional and transIormational
leadership on their subordinates` perIormance, with diIIerence oI leadership`s gender and the
eIIect oI employee`s job satisIaction and perIormance in return.
The research question is: 'which oI the transIormational and the transactional leadership
theories with which leader`s gender type, works better on improving the employee`s job
satisIaction and perIormance in Egypt?"
Hypothesis:
1. TransIormational leadership increases the employee`s job satisIaction that in return
increases their job perIormance.

2. Transactional leadership has a negative eIIect in compare with transIormational leadership
on subordinates` perIormance.

3. Leadership diIIerent styles and genders have diIIerent eIIects on subordinate`s
perIormance.

Implications of Research
This proposed research should examine the relation between two variables that may be
hidden Irom a lot oI managers and their subordinates, which is the eIIect oI managers`
leadership styles (TransIormational or Transactional) on their subordinate`s perIormance in
the Egyptian Organizations. This research may empower the managers to connect with their
subordinates in the best possible way and reassess their strategies.

Methods
The used Method is quantitative deduction method to collect the data Irom about 2 Egyptian
organizations in diIIerent industries and compare them to test the relation between the eIIect
oI the transIormational and transactional leadership represented in the managers layers and
their subordinate`s job perIormance. It will also study the eIIect oI diIIerent genders
leadership styles and their employee`s job satisIaction and perIormance in return on this
relation.
Subfect & Participants
The total population that the sample will be chosen Irom will be the number oI Egyptian
organizations with its diIIerent industries sector in Egypt (more than 100 companies).
This study will Iocus on Egyptian market Ior several reasons; the main reason is that in the
past couple oI years Egypt has witnessed major improvements in its organizations and
management systems and their leader`s perIormance, such as improvements included
structural changes in the Iiscal and monetary policies, privatization, and new business
legislations. This structural reIorm has improved the Egyptian organizations overall
perIormance, decreased employees` turnover, increased employees job satisIaction and
loyalty.
The sample is comprised oI 2 Egyptian organizations; the chosen sample will be the 20
managers oI both genders and 5 subordinates per each. Participants will be chosen based on
their experience, as minimum oI Iive years and maximum oI 20 years, Ior the managers, and
minimum oI one year and maximum 5, Ior their subordinates experience with these
managers.
Instrument

In order to study the eIIect between diIIerent leadership styles and their subordinates we have
to use a translated MultiIactor leadership questionnaire, version 8Y (Den Hartog et al., 1994).
To measure the diIIerent leadership styles, participants Irom the employees will indicate how
Irequently their mangers displayed the behavior described in each item using a 5-point scale,
where 5 Irequently, iI not always, 4 Iairly oIten, 3 sometimes 2 once in a while, and
1 not at all (Lievens, Van Geit, and Pol Coetsier, 1997).
esign
With the MLQ, we used is Marlowe Crowne Social Desirability Scale (Reynolds, 1982).
Subordinates will be asked to indicate whether each oI the 13 items was true or Ialse. The
internal consistency oI this shortened version was .60. An example item is: 'It is sometimes
hard Ior me to go on with my work iI I am not encouraged. (Lievens, Van Geit & Pol
Coetsier, 1997).
oth tools are used to prove the diIIerence between both types oI gender`s success in either
the transIormational or the transactional leadership and their eIIect on their subordinate`s job
perIormance among the selected samples oI organizations' employees. On the other hand, we
will use the productivity reports to measure each oI the manager`s departments overall
perIormance.
Procedure
The questionnaire will divide the sample into two groups (experimental group and the control
group), conducting the above tools on both groups to measure the eIIect oI leadership`s
diIIerent styles and diIIerent genders oI the two groups and measure the correspondent on
their subordinates perIormance and record the data. Then construct long term (1 year)
leadership practices, training and activities to increase its level Ior the experimental group
and leave the two groups Ior one extra year and Iinally conduct the above tools again Ior both

the control and experimental groups and measure the perIormance oI the two groups to study
the relation type.
Assuming that the variable oI Egyptian organizations size will be ignored and also the entire
structure oI these companies will be ignored too and to be opened to Iuture researches.
Limitations
The Iindings oI the study cannot be generalized to all the Egyptian organizations because the
sample was limited to one urban area in Cairo and it excluded the rural areas in other
governorates in Egypt. Moreover, the majority oI the sample consists oI well educated
individuals who increase the probability oI the ideal response due to their better knowledge oI
what quality oI leader would be better Ior their well understanding oI the questions.
Also, the response bias may increase Ior some questions regarding the employee`s managers
and their relations, the way they provide their appraisals and the way they are overall treated
because the participants may provide inaccurate inIormation regarding these matters.
Future investigations
Due to the limited time and scope oI the study, Iuture investigators may also want to use
larger samples to examine gender diIIerences. y using a larger sample researchers may be
able to examine the diIIerent components oI emotional intelligence and establish in which
components Iemales score higher than males. The researchers believe that in order to expand
the current studies, Iuture research could also examine the relationship between the
components and subcomponents oI transIormational leadership style and emotional
intelligence. The study may also add valuable inIormation iI other variables like cultural
background, age, length oI experience as manager, and type oI work setting are taken into
account.

2. Conclusion
As a summary, in this paper, we examined leadership diIIerent styles eIIect on their
subordinate`s job perIormance. It started by discussing leadership in general, then it`s
diIIerent styles; transactional and transIormational, Iollowed by each oI their eIIecting
Iactors, and then the eIIect oI each style on job perIormance and satisIaction oI each style`s
subordinates. The second section oI the paper introduces some concepts regarding employees
job perIormance Iactors, and ended the literature review by the eIIect oI both leadership
style`s accompanied by the gender type oI the leader on their employee`s overall
perIormance.
The impact oI leadership style on employees perIormance is very obvious as successIul
leaders mange to satisIy their employees with controlled costs and smart methods to reach
their main targets; loyalty, productivity, eIIiciency and belonging. It is also crucial to note the
positive relation Iound between job satisIaction and job perIormance, even more the positive
relation between women as leaders and their success with enhancing their employees`
perIormance through the transIormational method. It also improves the competition between
organizations and it increases productivity so all this will eventually lead to economic
welIare.
In order to answer the research question 'which oI the transIormational and the transactional
leadership theories with which leader`s gender type, works better on improving the

employee`s job satisIaction and perIormance in Egypt?" , a case study was Iound to be the
most appropriate instrument Ior such a research question.
The case study here is a qualitative descriptive research that seeks in-depth understanding oI
a certain phenomena. Data would be collected Irom two companies in Cairo, OCI (Orascom
Construction Industries) and P&G (Proctor and Gamble). Using the questionnaire and
assessed by the SPSS (Statistical Products and Services Solutions) soItware. The study is
expected to take around a year.
In my opinion, transIormational leadership style works best in today`s dynamic market. It
suites the globalized system we moved into since the late 1990`s, which is accordingly
changing dynamically and adapting to the markets needs and changes. However, I believe
that still there are certain craIts and industries that would not give as much outcome except by
the transactional leadership, especially in Egypt, e.g. Iarming. Even though some researchers
proved that there is no gender relation to the level oI response oI the subordinates, that I still
would expect transIormational leadership to work best with women mangers employee`s,
better than men, due to the emotional creativity related to such a leadership.


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The Effect of the relationship between salaries broas-band technique on the employees motivation and performance in Egyptian Organizations

Faculty oI Management Technology

and the so-called new broad-banded approach?

Transactional leadership works through creating 'clear structures whereby it is clear

depend in their relationship with their subordinates to be Iramed in the transactional

anking Sector. uman Resources evelopment International. 12(2),

O Reynolds, G. J, & WarIield, H, (2010). Discerning the DiIIerences

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