Evaluation Moderating Role of Organizational Trust on Relationship Between Leadership Styles with Employee Performance

Abstract

NOTE: THIS ARTICLE WAS PUBLISHED WITH THE INFORMING SCIENCE INSTITUTE. Aim/Purpose................................................................................................................................................................................. The main objective of this study is to analyze the relationship between leadership style, performance, and organizational trust. In addition, it will look into the relationship between four leadership styles and employee performance moderating by organizational trust in the case of Shahid Hashemi Nejad Gas Refinery. Background................................................................................................................................................................................. The leadership is one of the key important functions in the organization. The leader is the one who can control factors and practices in the organization such as: individual rights, working conditions, and policies of the organization, assess progress and assign responsibility. In fact, how the leaders controls these factors and motivate the staff is and index of the extent to which the leader has been effective. For this reason, it is expected that the person who is the leader of an organization does necessarily have an understanding of how to perform all the duties of a manager. However, there has not been a complete research on the effectiveness of organizational trust in the relationship between leadership style (based on Likert’s theory) and the performance of employees in government agencies. Therefore, the main research question is; whether organizational trust has a moderating role in the relationship between leadership style and employee performance. Methodology................................................................................................................................................................................. The present study is applied research.The measurement instruments used in this research is a survey questionnaire. The Validity and reliability of the questionnaires are based on expert opinions. The statistical population of this research is all employees of Shahid Hashemi Nejad Gas Refinery using stratified random sampling. A total of 196 employees were selected as the sample of this study. The structural equation modeling (SEM) was perfumed in order to answer the research questions. Contribution................................................................................................................................................................................. This paper aims to focus on the sanctions, limitations and seriousness of the situation and prioritize steps to use the right leadership style in organizations. Findings...................................................................................................................................................................................... In general, the findings of the research indicate the absence of evidence of a moderating role played by organizational trust (horizontal, vertical, institutional) in the relationship between leadership style and employee performance. Recommendations for Practitioners.......................................................................................................................................... This paper subtly suggests a certain course of action and serious recognition of flaws and deficiencies in the system that are obvious and emerges and which are critical and must be addressed. Recommendation for Researchers............................................................................................................................................. It is suggested that this type of research needs to be conducted in private-ownership organizations; that one measures and analyzes the impact of leadership styles on employee commitment and the effectiveness of management participation. Considering the level of performance of staff in relation to leadership styles, it is suggested that other factors that affect or interact with employee performance in the organization are investigated. For example, investigate factors affecting the establishment of authoritarian rule. Impact on Society.................................................................................................................................................................... All public and private companies can increase their employees’ performance by using and improving their leadership style. Future Research....................................................................................................................................................................... More research needs to be done in private organizations with respect to the impact of leadership styles on employee commitment; and with respect to the effectiveness of management participation versus authoritarian rule. There are other factors affecting or interacting with the performance of employees in the organization that should be investigated. For Example, to investigate the factors affecting the establishment of institutional trust in an organization.