What Is the Impact of Leadership Training Hours on The Overall Performance of A Company?

Executive Summary of  Australian Broadcasting Corporation

The purpose of the present research study is to analyse the impact of leadership on the organizational performance. In order to understand the relationship between both in contemporary organizations, secondary quantitative data was collected from the annual reports of Australia Broadcasting Corporation. The findings of the study depicted that there does not exist significant but moderate association between total leadership training hours on the organizational performance of Australia Broadcasting Corporation.

Table of Contents

1.Background.

1.1Problem Statement

1.2Research Inquiry.

1.3Research Aim..

1.4Research Questions.

2.Literature Review..

2.2 Leadership and organizational performance.

3.Research Methodology.

3.1 Research Design.

3.2 Data Sources.

3.3Data Analysis.

3.4 Findings of data analysis.

3.4.1 What is the impact of Total Leadership Training Hours on Transmission Performance of Australian Broadcasting Corporation?.

3.4.2 What is the impact of Total Leadership Training Hours on Digital Reach performance of Australian Broadcasting Corporation?.

3.4.2.1 Descriptive Statistics.

3.4.2.2 Inferential Statistics.

Discussion.

Conclusion.

References.

1. Background of Australian Broadcasting Corporation 

The success of an organization is dependent on the organizational performance. Enhance in the performance of an organization definitely leads to an increase in the profitability of the organization. The organizational performance is derived from the commitment of the employees towards the goals and commitment of the employees is highly associated with the effectiveness of the leaders present in the organization. The literature points out to the fact that leaders play an important role in motivating the employees to become a key asset for the growth of the organization. Effective leadership involves motivating the employees with both intrinsic and extrinsic methods of appreciation. The increase in the motivation level of the employees results in reduction in the turnover rate of the employees and enhancement in their job performance which eventually results in the organizational effectiveness and financial performance. However, the literature also postulates that there exist employees with different values in the organization. There are many employees in the organization who does not want to get delegated by others, in this case leadership does not play its role in motivating the employees to increase their performance towards the organization. The leader might also face difficulty in understanding the different value systems of the employees which might impact the effectiveness of the leadership. Therefore, the presence of effective leadership at the organization might not always have a positive impact on the profitability of the organization.

1.1 Problem Statement

It becomes difficult for the organizations to create leaders because according to the trait theory of leadership, the leaders have certain traits that make employees good leaders. It is anticipated by the owners that great leadership can have positive impact on the organizational performance. However, in the contemporary organizations the employers also spend a high proportion of their revenue on training the employees for driving their capabilities. Therefore, many employers still consider the leadership training given to the employees as a burden on the revenue earned by the organization. It becomes important to understand the relationship between the leadership training and the organizational performance. In order to draw implications on the research area, the case of Australian Broadcasting Corporation will be considered for drawing practical implications on the relationship between leadership training and profitability of organization.

1.2 Research Inquiry

The present literature review on the research area of leadership clearly depicts the relationship between leadership training and the employee commitment. It can be understood that the presence of effective leadership at the organization can have positive impact on the employee commitment towards the organizational goals. However, the research gap is does not clearly specifies the relationship between leadership training and the overall organizational performance. Therefore, the aim of the current research report will be to understand the relationship between these variables.

1.3 Research Aim

The aim of the research will be to estimate the relationship between leadership training on the performance of Australian Broadcast Corporation.

1.4 Research Questions

  • What is the impact of Total Leadership Training Hours on Transmission Performance of Australian Broadcasting Corporation?
  • What is the impact of Total Leadership Training Hours on Digital Reach performance of Australian Broadcasting Corporation?

2. Literature Review of Australian Broadcasting Corporation Case Study

2.1 Leadership in Contemporary Organizations

In contemporary organizations, employees from diverse backgrounds work together to achieve similar organizational goals. A leader is required in order to ensure that all the employees move in the same direction (Adam et al., 2020). According to the trait theory, there are certain attributes and personal characteristics of an individual that make him a perfect leader. However, in the contemporary organization it is not believed that an individual is born with leadership traits and these traits can be developed by imparting relevant training to the employee (Rehman et al., 2019).

The literature also sheds light on the fact that leadership capability is just not based on the capability of the individual but it is also based on the culture and organizational environment which makes it important for the employer to ensure that the environment of the organization is positive (Zeb et al., 2018). Positive working environment and adequate training can definitely help an individual in developing the capabilities that are required for becoming a quality leader. According to the literature, the presence of quality leadership is also important for an organization in order to increase the employee commitment towards the goals of the organization (Yuniarsih, 2020). When an employee believes that there is someone to look after his/her growth then the employee feels motivated to increase its contribution towards the organization. Therefore, it can be understood that there exists direct relationship between the effective leadership and employee commitment in contemporary organizations.

The diversity of employees at the organization has increased the complexity of the contemporary organizations. It has become important for the employers to give value to their employees and give them adequate training for further motivating them to achieve organizational goals. According to the literature, there is high association between the bad leadership and low productivity of the employees at an organization (Jing & Avery, 2016). The bad leadership leads to a decline in the morale of the employees which hampers their capability to create new ideas and bring innovative solutions for the organization. Whereas, the existence of goo leadership at the organization helps the employees in increasing their both quality and quantity of work which further has direct positive impact on the performance of the organization.

According to literature, positive leadership has the ability to influence the actions taken by the other individual. The leaders clear the organizational goals to the employees and increase the morale of the employees to join in the dream of achieving the desired organizational performance (Karam et al., 2019). When both the leader and the employees of the organization move in the similar direction, it leads to a positive impact on the job satisfaction and performance of the follower. All the subordinates of the leader develop the zeal and power to work towards the goals of the organization and also assist the leader in the decision making in important situations in the organization. In this way, it can also be said that an effective leader has the capability to develop a lot more potential leaders in the organization.

According to the study conducted by Alrowwad et al. (2017), there are few characteristics of an effective leader. The presence of these characteristics is important in order to retrieve the benefits of effective leadership for the performance of the organization. It is important that the leader should have the capability to analyse the situation effectively and then make decisions (Suharnomo, 2019). It is also important that the leader should first himself be very clear about the goals and vision of the organization in order to ensure that every employee in the organization is also working in accordance with the goals of the organization. The study conducted by Pitelis & Wagner (2019), also states that it is important for the leader to just not know how to delegate the employees of the organization but also to understand the importance of interpersonal relationships with the employees of the organization. It is important that the leader should have the capability to develop positive relationship with the employees of the organization. According to the literature, development of interpersonal relationships is required in order to better understand the needs of the employees of the organization (Staal, 2019).

2.2 Leadership and Organizational Performance

An organization has limited resources and it is the responsibility of the employees of the organization to convert the inputs into outputs in order to drive value out of them. The capability of generating value by the employees determines the performance of the organization (Ding et al., 2020). The employees of the organization need to be flexible in adapting to changes and using opportunities available in order to further drive the performance of an organization. However, the literature states that the employees of the organization need training, coaching and delegation in order to better respond and utilize the prevailing opportunities in the market for increasing the performance of the organization (Rabadán et al., 2017). Therefore, there is requirement of effective leadership in every organization so that the employees in the organization get better direction towards the goals of the organization.

 A leader also helps the employees in adopting methods that are necessary for improving the organizational process. However, it is important that a leader must first form relationship of trust with the employees in order to inspire motivation and target their intellectual stimulation for further increasing their contribution towards the goals of the organization. The findings of the study conducted by Chen et al. (2019), state that the organizations with effective organizational performance are able to implement collaboration between the team leaders and employees of the organization.

Strategic initiative of leadership training among the employees of the organization is also suggested by present literature in order to increase the performance of the overall organization (Jing & Avery, 2016). The presence of effective leadership in the organization does not only positively impact the profitability of the organization through an increase in the motivation and commitment of the employees. But, effective leadership also helps an organization in achieving the expectations of the shareholders. The study conducted by Chou & Ramser (2019), confirms the significant association between effective leadership and performance of the organization. However, in order to increase the organizational performance through effective leadership it is important that the goal of the leader is in line with the goal of the organization (Karam et al., 2019). The collaboration of leadership effectiveness and communication of the organizational goals can definitely help an organization in increasing its overall performance and profitability of the organization. However, if the leader gives preference to the individualistic goals than giving priority to the organizational goals might impact the extent of effectiveness of presence of leadership on the organizational performance.

3. Research Methodology of Australian Broadcasting Corporation Case Study

Research methodology is a very important component of a research project because it specifies the methods that will be adopted by the researcher in order to analyse the collected data. It becomes important for the researcher to choose appropriate research methodology in order to increase the credibility and quality of the research findings.

3.1 Research Design

The deductive research approach and exploratory research design will be adopted in the current research study. Deductive research approach will help in finding specific answers for the research questions of the study. The exploratory research design will further help in drawing inferences from the data in the form of descriptive and inferential statistics.

3.2 Data Sources

Secondary quantitative data regarding Total Leadership Training Hours, Transmission Performance and Digital Reach performance will be collected from the annual reports of Australia Broadcasting Corporation for ten years from 2010 to 2019. The data will be extracted from annual reports in order to ensure the validity of the data and increase the credibility of the research findings.

3.3 Data Analysis

Three variables including Total Leadership Training Hours, Transmission Performance and Digital Reach performance will be considered for understanding the relationship between leadership and organizational performance.

In the current research study, the researcher wanted to understand the relationship between leadership on organizational performance. Leadership is a categorical variable, therefore the total leadership training hour will be considered as independent variable in the entire analysis conducted in the present study. The research is considering the case of Australian Broadcasting Corporation. The two variables that can depict the performance of an organization like Australian Broadcasting Corporation are Digital Reach and Transmission Performance. Digital Reach and Transmission Performance will be treated as proxy variables for organizational performance of Australian Broadcasting Corporation.

The Digital Reach and Transmission Performance will be dependent variables and leadership training hours will be considered as independent variable. The analysis was done using Excel software.

3.4 Findings of Data Analysis

3.4.1 What is the impact of Total Leadership Training Hours on Transmission Performance of Australian Broadcasting Corporation?

3.4.1.1 Descriptive Statistics

Leadership Hours

Mean

8152

Standard Error

1804.60333

Median

7089

Mode

#N/A

Standard Deviation

5706.656795

Sample Variance

32565931.78

Kurtosis

-0.677342526

Skewness

0.733112153

Range

15718

Minimum

2172

Maximum

17890

Sum

81520

Count

10

The above table depicts the summary of the data of leadership hours. It can be understood from the above table that the average working hours provided to the employees of Australian Broadcasting Corporation is equivalent to 8152. The standard deviation is equivalent to 5706.656795 which indicates that there is high disparity of the data values for its mean. The highest number of training hours provided to the employees is equivalent to 17890 and minimum number of training hours provided to the employees is equivalent to 2172. Therefore, it can be evaluated that there has been fluctuations in the leadership training spent on the employees of the organization.

Transmission

Mean

97.159

Standard Error

1.12582064

Median

99.45

Mode

#N/A

Standard Deviation

3.56015746

Sample Variance

12.6747211

Kurtosis

-0.8884864

Skewness

-0.946909

Range

9.05

Minimum

90.76

Maximum

99.81

Sum

971.59

Count

10

The above table depicts the summary of the data of transmission performance of Australia Broadcasting Corporation. It can be understood from the above table that the average transmission performance over the ten years is equivalent to 97.159. The standard deviation is equivalent to 3.56015746 which indicates that there is low disparity of the data values from its mean. It can also be evaluated that there has been less fluctuations in the transmission performance of the organization.

The highest number of transmission equivalent to 99.81 and minimum transmission is equivalent to 90.76. Therefore, the range of transmission performance of the organization is equivalent to 9.05.

3.4.1.2 Inferential Statistics

SUMMARY OUTPUT

         

Regression Statistics

       

Multiple R

0.032599893

       

R Square

0.001062753

       

Adjusted R Square

-0.123804403

       

Standard Error

3.774110145

       

Observations

10

       

ANOVA

         

 

df

SS

MS

F

Significance F

Regression

1

0.121230887

0.121230887

0.00851107

0.92876347

Residual

8

113.9512591

14.24390739

   

Total

9

114.07249

 

 

 

 

Coefficients

Standard Error

t Stat

P-value

Lower 95%

Intercept

97.32479362

2.1573157

45.1138392

6.4359E-11

92.3500147

Leadership Hours

2.033

0.000220451

-0.092255458

0.92876347

-0.0005287

Y = β0 + β1X

Transmission Performance = β0 + β1 Leadership Training Hours

Transmission Performance = 97.324 + β1 2.033

The above is the regression line which defines the relationship between leadership training hours and transmission performance of the organization. The value of the beta coefficient depicts that one unit increase in the leadership hour will lead to an increase in the transmission performance by 2.033 units. The value of the intercept indicates that even if there will be 0 unit increase in the leadership hours the transmission performance will increase by 97.324 units. Therefore, it can be evaluated that there does not exist significant relationship between leadership training hours and transmission performance of Australia Broadcasting Corporation.

3.4.2 What is the impact of Total Leadership Training Hours on Digital Reach performance of Australian Broadcasting Corporation?

3.4.2.1 Descriptive Statistics

Digital Reach

Mean

36.478

Standard Error

1.383407869

Median

38.35

Mode

39.8

Standard Deviation

4.374719801

Sample Variance

19.13817333

Kurtosis

-1.293657441

Skewness

-0.875799497

Range

10.2

Minimum

30

Maximum

40.2

Sum

364.78

Count

10

The above summary table describes the characteristics of digital reach performance of the organization. It can be analysed that the average digital reach performance of the organization is equivalent to 36.478. The standard deviation is equivalent to 4.374719801 which indicates that there is low disparity of the data values from its mean. It can also be evaluated that there has been less fluctuations in the digital reach performance of the organization.

The highest digital reach performance of the organization is equivalent to 40.2, while the lowest digital reach performance of the organization is equivalent to 30 over the past ten years.

3.4.2.2 Inferential Statistics

SUMMARY OUTPUT

         

Regression Statistics

         

Multiple R

0.47350057

         

R Square

0.22420279

         

Adjusted R Square

0.12722814

         

Standard Error

4.08696209

         

Observations

10

         
             

ANOVA

           

 

df

SS

MS

F

Significance F

 

Regression

1

38.6174868

38.6174868

2.31197315

0.16687109

 

Residual

8

133.626073

16.7032592

     

Total

9

172.24356

 

 

 

 
             

 

Coefficients

Standard Error

t Stat

P-value

Lower 95%

Upper 95%

Intercept

3.5189441

2.33614472

14.3479742

5.4359E-07

28.1317847

38.9061035

Leadership Hours

33.5189441

0.00023872

1.5205174

0.16687109

-0.0001875

0.00091349

 

Y = β0 + β1X

Digital Reach Performance = β0 + β1 Leadership Training Hours

Digital Reach Performance = 3.51 + β1 33.51

The above is the regression line which defines the relationship between leadership training hours and digital reach performance of the organization. The value of the beta coefficient depicts that one unit increase in the leadership hour will lead to an increase the digital reach of the organization by 33.5189441. The value of the intercept indicates that even if there will be 0 unit increase in the leadership hours the digital reach of the organization will increase by 3.5189441units. Therefore, it can be evaluated that exists significant relationship between leadership training hours and digital reach performance of the organization.

4. Discussion on Australian Broadcasting Corporation Case Study 

The findings of the current study dictate that there exist significant association between Total Leadership training hours and Digital Reach performance of the organization but there does not exist significant association between Leadership training hours and Transmission Performance. Therefore, it can be evaluated that moderately leadership does have an impact on the organizational performance. This finding of the study is in line with the study conducted by Pitelis & Wagner (2019), which states that leadership helps in increasing the organizational performance by increasing employee commitment towards the organizational goals.

5. Conclusion on Australian Broadcasting Corporation Case Study

  1. What is the impact of Total Leadership Training Hours on Transmission Performance of Australian Broadcasting Corporation?

It can be analysed from the analysis conducted that there does not exist significant relationship between the Total Leadership Training Hours and the transmission performance of the organization. 

  1. What is the impact of Total Leadership Training Hours on Digital Reach performance of Australian Broadcasting Corporation?

It can be analysed from the analysis conducted that there exists significant relationship between the Total Leadership Training Hours and the digital reach performance of the organization. 

References for Australian Broadcasting Corporation Case Study

Adam, J. K., Indradewa, R., & Syah, T. Y. R. (2020). The Leadership Styles Impact, In Learning Organizations, And Organizational Innovation Towards Organizational Performance Over Manufacturing Companies, Indonesia. Journal of Multidisciplinary Academic, 4(2), 63-69.

Alrowwad, A. A., Obeidat, B. Y., & Aqqad, N. (2017). The impact of transformational leadership on organizational performance via the mediating role of corporate social responsibility: A structural equation modeling approach. International Business Research, 10(1), 199-221.

Chen, Y., Zhou, X., & Klyver, K. (2019). Collective efficacy: Linking paternalistic leadership to organizational commitment. Journal of Business Ethics, 159(2), 587-603.

Chou, S. Y., & Ramser, C. (2019). A Multilevel Model of Organizational Learning: Incorporating Employee Spontaneous Workplace Behaviors, Leadership Capital and Knowledge Management. Learning Organization, 26(2), 132-145.

Ding, H., Yu, E., Chu, X., Li, Y., & Amin, K. (2020). Humble Leadership Affects Organizational Citizenship Behavior: The Sequential Mediating Effect of Strengths Use and Job Crafting. Frontiers in Psychology, 11, 65.

Jing, F. F., & Avery, G. C. (2016). Missing links in understanding the relationship between leadership and organizational performance. International Business & Economics Research Journal (IBER), 15(3), 107-118.

Jing, F. F., Avery, G. C., & Bergsteiner, H. (2020). Leadership Variables and Business Performance: Mediating and Interaction Effects. Journal of Leadership & Organizational Studies, 1548051818824532.

Karam, E. P., Hu, J., Davison, R. B., Juravich, M., Nahrgang, J. D., Humphrey, S. E., & Scott DeRue, D. (2019). Illuminating the ‘face’of justice: A meta‐analytic examination of leadership and organizational justice. Journal of Management Studies, 56(1), 134-171.

Pitelis, C. N., & Wagner, J. D. (2019). Strategic shared leadership and organizational dynamic capabilities. The Leadership Quarterly, 30(2), 233-242.

Rabadán, L. E., Rivera-Salgado, G., & Rodríguez, R. (2017). Is more necessarily better? Leadership and organizational development of migrant hometown associations in Los Angeles, California. Migraciones Internacionales, 6(21), 41-74.

Rehman, S. U., Bhatti, A., & Chaudhry, N. I. (2019). Mediating effect of innovative culture and organizational learning between leadership styles at third-order and organizational performance in Malaysian SMEs. Journal of Global Entrepreneurship Research, 9(1), 36.

Staal, M. A. (2019). Consultation to Leadership and Organizational Development. Operational Psychology: A New Field to Support National Security and Public Safety, 101.

Suharnomo, S. (2019). Leadership Culture Organizational Political (LCOP) Model: A strategy organizational capability to increase organization performance in Indonesia. Revista Espacios, 40(22).

Yuniarsih, T. (2020, March). The Influence of Knowledge Management Mediation and Work Motivation on Leadership and Organizational Task Performance. In 4th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-2 2019) (pp. 887-892). Atlantis Press.

Zeb, A., Ahmad, S., & Saeed, G. (2018). Leadership effectiveness and organizational performance: Exploring gaps in the existing literature. Business and Economic Review, 10(1), 95-106.

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