Abstract/Summary

This research study investigates the relationship of transformational (Bass, 1985) with organisational performance (Sharma et al., 1990). It is set within the context of the English NHS which is undergoing both considerable and radical change (DOH, 1997, DOH, 2000, DOH, 2005b) and framed within the paradigm of the New Public Management (Osborn and Gaebler, 1992). The role Chief Executives of NHS organisations play in delivering improvements in organisational performance during these times of great change is considered. The conceptual model derived from the literature suggested that transformational leadership behaviours were positively correlated with higher organisational performance at times of considerable change. The study was undertaken using data collected about Chief Executives who had been in post for at least two years, and appraised by their immediate superior, the organisation's non-executive Chair. The Chair used the Multifactor Leadership Questionnaire [MLQ (5X)] to report on their Chief Executives transformational leadership behaviours (Avolio and Bass, 2004). The Chair reported also on the organisation's performance using the EXCEL performance excellence questionnaire (Sharma et al., 1999). The use of the EXCEL instrument was novel within the NHS. The results indicated support for the theoretical conjecture that transformational leadership was measured by the MLQ (5X) is positively correlated with performance excellence as measured by the EXCEL instrument. Elements of the transformational leadership model required modification as a result of the data analysis. Following subsequent factor analysis a revised two factor leadership model comprising an 'Active' leadership and a 'Passive/corrective' leadership component was derived from the data. Contingent reward, identified within the theoretical framework as a transactional factor, was found to be both a transactional and transformational component within this two factor model. the reasons for this are explored. The impact of gender as a factor in leadership behaviour was explored and found to have no augmenting effect on organisational performance. Tenure in post was considered and the data showed that Chief Executives in post for over four years had a higher positive impact on organisational performance compared to those in post for two to three years. Areas for future research are identified arising from these findings.