DETERMINANTS OF DECISION MAKING QUALITY STUDIES ON LEADERS OF UNIVERSITI TEKNOLOGI MARA SELANGOR

DETERMINANTS OF DECISION MAKING QUALITY:

STUDIES ON LEADERS OF UNIVERSITI TEKNOLOGI MARA SELANGOR

AMIRA NURUL AAINA BINTI ABU BAKAR

2014801946

NUR DIYANA BINTI ABDUL RAZAK

2012707129

BACHELOR OF BUSINESS ADMINISTRATION WITH HONOURS

(INTERNATIONAL BUSINESS)

FACULTY OF BUSINESS MANAGEMENT

UNIVERSITI TEKNOLOGI MARA

KAMPUS BANDARAYA MELAKA

JULY 2016

ii

DETERMINANTS OF DECISION MAKING QUALITY:

STUDIES ON LEADERS OF UNIVERSITI TEKNOLOGI MARA SELANGOR


2014801946


2012707129

Submitted in Partial Fulfillment of the

Requirement for the

Bachelor of Business Administration with Honours (International Business)



BANDARAYA MELAKA

JULY 2016

iii

DECLARATION OF ORIGINAL WORK

BACHELOR OF BUSINESS ADMINISTRATION WITH HONOURS

(INTERNATIONAL BUSINESS)



KAMPUS BANDARAYA MELAKA

“DECLARATION OF ORIGINAL WORK”

We, Amira Nurul Aaina Binti Abu Bakar, (I/C Number: 930727-08-5748) and

Nur Diyana Binti Abdul Razak, (I/C Number: 921204-02-5688)

Hereby, declare that:

This work has not previously been accepted in substance for any degree, locally or

overseas, and is not being concurrently submitted for this degree or any other degrees.

This project paper is the result of our independent work and investigation, except where

otherwise stated.

All verbatim extracts have been distinguished by quotation marks and sources of our

information have been specifically acknowledged.

Signature: _________________________________ Date: _____________________

Signature: _________________________________ Date: _____________________

iv

LETTER OF SUBMISSION

24 June 2016

Project Advisor

Mr. Zakimi Bin Ibrahim

Bachelor of Business Administration (Hons) International Business

Faculty of Business Management

Universiti Teknologi MARA Kampus Alor Gajah Melaka

Dear Mr. Zakimi,

SUBMISSION OF PROJECT PAPER (IBM663)

With reference to the above matter, enclosed herewith is a report of our project paper titled

DETERMINANTS OF DECISION MAKING QUALITY: STUDIES ON THE LEADERS OF

UNIVERSITI TEKNOLOGI MARA SELANGOR to fulfill the requirement as needed by the faculty

of Business Management. It is with our very high hopes that this project paper has

accomplished the requirements and expectations of the faculty and the desired objective of the

course undertaken. Lastly, we would like to express our most sincere gratitude for the time,

advice and guidance that you have rendered during the entire preparation right up to the

completion of this project paper.

Thank You.

Yours Sincerely,

__________________________


2014801946

BBA HONS INTERNATIONAL BUSINESS

__________________________


2012707129

BBA HONS INTERNATIONAL BUSINESS

v

ACKNOWLEDGEMENT

Bismillahirahmanirahim

In the name of Allah, the most beneficent and merciful

Alhamdulillah, praise to Allah SWT, who has endowed us with His Gracious and Mercy

for giving us strength in order to complete this project paper.

We would like to extend our highest appreciation and gratitude to our advisor, Mr

Zakimi Bin Ibrahim for his endless guidance and encouragement for us to strive in doing our

best. Also, to our second examiner, Madam Irwani Hazlina Binti Abd. Samad. We would also

like to extend our heartfelt thanks to all of our lecturers in the Faculty of Business Management

for imparting their knowledge to us besides providing us with their valuable support and

assistance throughout our journey to receive our Bachelor’s Degree.

Furthermore, our gratitude also goes to AKEPT and UiTM Kuala Pilah staffs for the

good memories and experience during our training stint. Not to forget to all the UiTM Selangor

leaders who had to participate in this project.

Last but not least, we would like to acknowledge our family and friends for their support

and encouragement and to the readers of this work, for their interest. Thank you.

vi

TABLE OF CONTENT

CONTENT PAGE

FRONT COVER i

DETERMINANTS OF DECISION MAKING QUALITY: STUDIES ON LEADERS OF

UNIVERSITI TEKNOLOGI MARA SELANGOR

ii

DECLARATION OF ORIGINAL WORK iii

LETTER OF SUBMISSION iv

ACKNOWLEDGEMENT v

TABLE OF CONTENT vi

LIST OF FIGURES ix

LIST OF TABLES x

ABSTRACT

xi

CHAPTER 1: INTRODUCTION

1

1.1 Introduction 1

1.2 Background of Study 2

1.3 Problem Statement 2

1.4 Research Objectives 4

1.5 Research Questions 4

1.6 Significance of Study 5

1.7 Scope of Study 5

1.8 Limitation of Study 6

1.8.1 Respondents’ Participation 6

1.8.2 Sample Size 6

1.8.3 Time Constraint 6

1.9 Definition of Term 6

1.9.1 Leadeship 6

1.9.2 Transactional Leadership 7

1.9.3 Transformational Leadership 7

1.9.4 Autocratic Leadership 7

1.9.5 Democratic Leadership 7

vii

1.9.6 Laissez-faire Leadership 8

1.9.7 Decision Making 8

1.9.8 Hierarchical Decision Making 8

1.9.9 Flexible Decision Making 8

1.9.10 Integrative Decision Making 8

1.9.11 Decision Quality

9

CHAPTER 2: LITERATURE REVIEW

10

2.1 Introduction 10

2.2 Decision Making Quality 10

2.3 Leadership Style 12

2.3.1 Transactional Leadership 16

2.3.2 Transformational Leadership 17

2.3.3 Autocratic and Democratic Leadership 19

2.3.4 Laissez-faire Leadership 21

2.4 Decision Theory 21

2.5 Decision Making Style 23

2.5.1 Decision Style 23

2.5.2 Hierarchical Decision Making 24

2.5.3 Flexible Decision Making 24

2.5.4 Integrative Decision Making 24

2.6 Research Framework

26

CHAPTER 3: RESEARCH METHODOLOGY

26

3.1 Introduction 26

3.2 Research Design 26

3.3 Sampling 26

3.3.1 Sampling Design 26

3.3.2 Population of Study 27

3.3.3 Sample Size 27

3.4 Data Collection Method 28

3.5 Questionnaire 29

viii

3.6 Data Analysis 29

3.7 Conclusion

30

CHAPTER 4: FINDINGS AND DATA ANALYSIS

31

4.1 Introduction 31

4.2 Findings and Analysis 31

4.2.1 Reliability Test 31

4.2.2 Respondent’s Profile 34

4.2.3 Descriptive Statistics 36

4.2.4 Correlation Coefficient Analysis 37

4.2.5 Multiple Regression Analysis 40

4.2.6 Hypotheses Testing 44

4.3 Conclusion

45

CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS

45

5.1 Introduction 45

5.2 Conclusions 45

5.2.1 Leadership Styles 45

5.2.2 Decision Making Styles 46

5.3 Recommendation 46

5.3.1 Improved Skills of Leadership and Decision making Style 46

5.3.2 Documented Decision Making Process

47

BIBLIOGRAPHY

APPENDICES

ix

LIST OF FIGURE

Figure:

Figure 2.1 Theoretical Framework 25

x

LIST OF TABLES

Table:

Table 4.1 Rules of Thumb for the Cronbach’s Alpha Coefficient Value 32

Table 4.2(a) Reliability Test for Leadership Styles 32

Table 4.2(b) Reliability Test for Decision Making Style 33

Table 4.2(c) Reliability Test for Decision Quality 33

Table 4.3 Profile of the Informants 34

Table 4.4 Summary of Descriptive Analysis for Each Variable 36

Table 4.5 Rule of Thumb for Interpreting the Size of a Correlation Coefficient 38

Table 4.6 Correlations Coefficient Analysis of All Variables 39

Table 4.7 Multiple Regression Analysis 41

Table 4.8 Hypotheses Results 43

xi

ABSTRACT

The main focus of this study is to determine the factors influencing decision quality

made by the leaders of Universiti Teknologi MARA (UiTM) Selangor. Factors that

influencing decision quality is the leadership styles which is divided into transactional

leaders, transformational leaders, democratic leaders, autocratic leaders and laissez-

faire leaders altogether with the decision-making styles which is divided into hierarchic

styles, flexible styles and integrative styles. There are eight hypotheses constructed in

this research. 130 electronic questionnaires were distributed via email to the unit of

analysis which is the leaders of Universiti Teknologi MARA (UiTM) Selangor. The

collected data have been analysed using the Statistical Package for Social Science

(SPSS) and the multiple regressions analysis was used to test the model and the

hypothesis. Results from this study show that transformational leaders, laissez-faire

leaders, hierarchic decision-making style, flexible decision-making style and integrative

decision-making style have a significant impact on decision quality. Recommendations

for future research have also been included.

1

CHAPTER 1: INTRODUCTION

1.1 Introduction

Education is the vital element for the nation to achieved stability and continuous sustainable

advancement. The Malaysian higher education system has developed from strength over

the recent decades. Over the recent decade alone, the system has made momentous gains

in student enrollment, raised in worldwide recognition on key dimensions, for example, the

patents, research publications and institutional quality, also become a top destination for

international students. These achievements are great evidence of the determination and

development of the Malaysian academic community.

Yet, the Ministry of Education aware that the system should need to keep developing up-to-

date following the global trends. Preparing Malaysian youth to prosper in this multifaceted

and perpetually changing future will involve an equally fundamental transformation of how

the higher education system and higher learning institutions currently operate.

Thus, the Ministry started building up the Malaysia Education Blueprint 2015–2025 (Higher

Education) in 2013. Over the two years progression, the Ministry illustrated on numerous

wellsprings of input, from Malaysian and international education experts to leaders of

Malaysian higher learning institutions and members of the public. The final product is a

blueprint that was developed by Malaysians, for Malaysians, and that will complement

Malaysia for the final phase of its excursion towards a high income nation.

1.2 Background of Study

To put to use the strategy of reaching goals towards improving higher education institution

(HEIs) reputation, the quality decision made by the top management level of higher

education institution regarding the institution's survival is extremely important. Inability to

2

make the quality decision may affect the enlargement of the size of student population, the

keenness of the institutions, the expectation of students and others. Decision quality is

very important because the results of the decision point to shows whether a good and

sound decision is made by the individual. Without a high quality decision, the organization

will not be able to create high quality services, such as the service delivery and

relationship with customers which is the students. This high quality decision is significant

for the organizational survival and competitiveness in the highly competitive worldwide

market.

Furthermore, quality has been an important theme adopted in general by educational

provider. The competitive surrounding conditions in Malaysia make the higher education

institution to discover the option of gaining competitive advantage through quality

improvement in managing the process of the educational system. This will lead to the

demand of having more quality decision by top management or the educational industry

leaders in Malaysia (Sohail et al., 2003). The decision quality is the result of organizational

leaders in selecting the right choices to settle down the problems faced by the

organization, precisely in the educational perspective.

1.3 Problem Statement

The issue of quality decisions relates to the top management of higher education

institutions which will act as the decision maker. Obliquely, this has to do with the

management of the institution, which is the most challenging issue facing educational

provider in developing countries today. This problem has persevered and continued to

gain the attention of major stakeholders, who are the students, the administration,

government, academician and society. The challenge is to encourage higher education

institution’s top management from an autocratic leader to become a democratic leader

3

and to warrant the reform is take on deliver the right prescriptions for the famous

weakness or problems. This is because the autocratic leadership styles in higher

education institutions can create poor management and indirectly poor decisions, which

may lead to failing standard of higher education in developing nation such as Malaysia

and her neighboring countries (Magoha, 2004)

The theory of leadership of higher educations are frequently confused and misunderstood,

and as a result, it will be rigorously debated within the academic community

(Bergquist.1992; Cohen & March, 1983). The basic failure of the study of management

and leadership drive from holding with the most important key issues of the decision may

be one cause why there is so little progress in the direction of overcoming the criticism of

management education that has become stronger and more prevalent during the last few

years (Bennis & O’Toole, 2005). One more probable cause for the lack of decision quality

is the belief by the higher level manager that they know what they need to know about

decision making in management and leadership issue (Rausch, 2007).

According to Rosser, Johnsrud, and Heck (2003), increments in competition for scarce

resources and a decrease in public trust in higher education practices have resulted in

demands for universities and colleges to demonstrate their productivity, effectiveness and

efficiency. Dealing with such issues requires that universities increase their

responsiveness to individual learner needs, societal goals and aspirations and economic

development. Hence, Universiti Teknologi Mara (UiTM) is no exemption. Subsequently, in

realizing a change event, universities administrators, academic leaders and change

agents need to know the values of their workforce and identify work habits which can

strengthen or weaken change initiatives (Asma et al. 2001). Paradoxically, studies showed

that up to 70% of new planned changes fail (Beer and Nohria, 2000).

4

Most of the research discussed on the topic between the relationship of leadership and

decision styles emphases on business organization, and there is very few amount of

research on higher education institutions even with the much descriptive report elaborate

the general performance of higher education institutions. Over and above, currently, a

broadly identified useful set of judging requirements or guidelines of quality decisions

relating to the higher education institutions, precisely the process, is needed. As follows,

development of judging requirements and the guideline is projected to achieve the

outcomes of the research. So, it is vital to understand how leadership styles focusing on

decision quality causes some colleges/universities accomplish high performance while

others do not.

1.4 Research Objectives

In line with the problem statement, this study seeks to address the following research

objectives:

1. To identify the relationship of leadership styles and decision making styles towards

decision quality.

2. To identify the factors that influence decision making quality the most.

1.5 Research Question

In relation to the research objectives, this study attempts to resolve the following research

questions:

1. What is the relationship of the leadership and decision making styles towards

decision quality?

2. Which factor influence decision making quality the most?

5

1.6 Significance of Study

The study on the decision making quality made by the leaders of UiTM Selangor is

extremely important from both theoretical and viable perspectives. Findings from this

study will extend to the development of the literature of leadership.

There are a lot of things that can be gained from the present study particularly to calculate

the decision quality of the UiTM Selangor Leaders. Understanding the relationships

between leadership styles and decision making styles with the decision quality should give

traces on how the growth paths of fast track of the leaders of UiTM Selangor vary from

those of slouches. It should trust that the study can impart to the theory gap in the

literature as well as the practice gap for the practitioners relating to its findings and result.

1.7 Scope of Study

The main point of this research is to investigate the determinants of decision quality made

by the leaders of UiTM Selangor. The respondents were approached via email whereby

the researchers explained the purpose of the study and attached a questionnaire for data

collection purposes.

This research focuses on the main campus of Universiti Teknologi MARA. Universiti

Teknologi MARA is the largest institution of higher learning in Malaysia in terms of size

and population. The main campus of the university is located in Shah Alam and they have

expanded nationwide with 12 state campuses 6 satellite campuses, 11 state satellite

campuses and 21 affiliated colleges. The leaders are comprised from Vice Chancellor to

Senior Lecturer of Universiti Teknologi MARA Selangor.

6

1.8 Limitations of Study

1.8.1. Respondents’ Participation

Leaders have an unlimited range of comprehension. Thus, in this study, the

researchers will focus on the leaders of Universiti Teknologi MARA Selangor. But, it

is still difficult for the researchers to approach the respondents and get their

response as the respondents are mostly busy people.

1.8.2. Sample Size

According to Krejcie and Morgan (1970), when the population is 130, the sample

size should be 97. Unfortunately, the researchers only managed to get 52

participants to participate in this research. According to Roscoe (1975), sample

sizes that are more than 30 and fewer than 500 are appropriate for most research.

Thus, 54% response rate, which is 52 respondents, can be considered as

adequate.

1.8.3. Time Constraint

Since the duration of time to do the research is limited due to the researchers’

internship commitment, it is hard for the researcher to get the sample size that is

needed, which are 97.

1.9 Definition of Terms

1.9.1. Leadership

Leadership is not about managing or directing. Leadership is about the ability to

influence and inspire other people in order to obtain the leader's goal. Leadership is

defined as the process of influencing the activities of an organized group toward

goal achievement (Yukl, 2002). Moreover, leaders have the ability to help

7

themselves and others to do the right things. Leaders set their direction, construct

an inspiring vision, and build something new. Leadership is about finding the

direction on where to go to be a successful team.

1.9.2. Transactional Leadership

Transactional leadership is also known as managerial leadership which focus on

supervision, organization and team performance. It is based on contingency, in that

reward or punishment is contingent upon performance. In the other words,

transactional leadership will make people feel motivated by thinking of rewards and

punishments.

1.9.3. Transformational Leadership

Transformational leadership is a process where leaders and their followers raise

one another to higher levels of morality and motivation (Burns, 1978). In addition,

transformational leadership is a model of integrity and fairness and able to set clear

goals. They have high expectations, able to encourage others and provide support

and recognition.

1.9.4. Autocratic Leadership

Autocratic leadership is a leadership style portrayed by an individual control over all

decisions and little input from group members. Autocratic leaders regularly make a

decision based on their thoughts and judgments and rarely acknowledge advice

from their followers. Autocratic leadership involves absolute, dictator control over a

group.

https://www.verywell.com/leadership-styles-2795312

8

1.9.5. Democratic Leadership

Democratic leadership is a leadership style which every individual from the group

takes more participative part in the decision-making process. The democratic

leader is charged with choosing who is in the group and who gets the opportunity to

the decisions that are made.

1.9.6. Laissez-faire Leadership

Laissez-faire leadership is a leadership style which leaders let the group members

to make the decisions. A leader gives little directions to the subordinates. In the

other words, all the rights and power to make the decisions is completely given to

the worker.

1.9.7. Decision Making

Decision making is the selection of a method to measure the options and

discovering a solution to a problem. Moreover, certain circumstances will require

different methodologies of decision making in order to be effective.

1.9.8. Hierarchical Decision Making

The hierarchical style analyzes a great deal of information and expecting others to

contribute and will readily challenge others’ views, analyses and decisions.

1.9.9. Flexible Decision Making

The flexible style concentrates on pace however the weight is on adaptability.

Confronted with the issue a person working in the flexible mode will simply get

enough data to choose a line of attack and quickly change course if need be.

https://www.verywell.com/leadership-styles-2795312

9

1.9.10. Integrative Decision Making

Integrative decision making style composes the decisions that are comprehensively

characterized and comprise of various approaches.

1.9.11. Decision Quality

The quality decision is the decision that meets the objectives of the organization

and offers rise to the positive outcome to the decision maker. Thus, decision quality

is operationally defined by looking at decision-making outcome in set apart

between the good decision and bad decision and whether it has encountered the

goal and objective of the organization.

10

CHAPTER 2: LITERATURE REVIEW

2.1 Introduction

Higher education institutions face competition from different education institutions offering

almost the same services and programmes. To remain competitive, these institutions must

respond to the complex factors while making a hit on the demand for education. Education

institutions seeking to achieve success must conduct a range of activities designed to

captivate potential students not only in Malaysia but worldwide.

In positioning themselves against their competitors and shaping their future directions,

strategic planning is extremely important for these institutions to remain competitive and

able to last for a long-term growth. Strategic management can be seen as a matter of

crucial economic analysis and planning. It can also be seen as a matter of organizational

decision making, within a social, political and cultural process (Johnson & Scholes, 1993).

Strategic management consists of taking a view of the entire organization, its place in its

environment, its values and culture, its key purpose, its direction and its strategic choice

for the improved future. Strategic management is a matter of bridge building or mapping

the route between the perceived present situation and the desired future situation (West-

Burnham, 1994).

2.2 Decision Making Quality

The quality concept is in fact as old as the Medieval Ages. It has been a permanent

concern of the universities since their foundation on those ancient times, having always

been part of the academic ideology. Van Vught (1995) argues that it was already possible

to distinguish two models of quality assessment in the XIIIth century, the French model of

vesting control in an external authority (Cobban, 1988) being the classic of quality

11

assessment in terms of accountability, and the English model of a sovereign community of

fellows being an example of quality assessment by means of noble review.

According to Massy (2003), HEIs need “Honoring the Trust”, these words meaning the

menders of the breach of trust that has been abraded. They can do this by being better

than they actually are, through a continuous and sustained work on the improvement of

“decision quality of education without spending more, dismantling their research

enterprise, or undermining their essential values” (Massy, 2003). Still, this may prove a

very difficult duty as Trow (1994) emphasizes: “Trust cannot be demanded but must be

freely given”. According to Vroeijenstijn (1995), the present attention given to the quality of

higher education may lead to think that this is an invention from the late decades and that

there was no concept of quality prior to 1985. This is, however not true. The quality

decision will always associate in what way leaders make the decision. It is interrelated to

their decision styles hence determine their leadership style.

The shift of decision-making responsibility to producers has had “substantial implications

for institutional governance and management” (Dill, 1995). Starting in the 80’s, and

especially at the political level, there were several voices were raised against the

traditional model of governance and management of HEIs, considered to be inefficient and

outdated to facing the new challenges confronting these organizations (Rosa,

Saraiva&Diz, 2005). Indeed, almost everywhere higher education has been under

pressure to turn into “more accountable and responsive, efficient and effective and, at the

same time, more entrepreneurial and self-managing” (Meek, 2003). Thus, in the last

twenty years, one has assisted to the invasion of the rhetoric and management practices

of the private sector into higher education, which has led to vital changes in the operation

of higher education institutions.

12

According to Elsass and Graves (1997) who contend that the heart of leadership is

decision making, and assuming that the key decisions are increasingly being

decentralized to individuals and groups within organizations, it is important to understand

how the increasing diversity in the sector relates to Malaysia Colleges’ decision making

capacity. Decision-making can be thought at three main levels. Firstly, at the personal

level, this means the individual goes through a common problem solving cycle to make

choices about the personal issues for which they look for solutions. Secondly, at an

aggregate or small group level which the tendency is to integrate more structured

approaches by generally, at least in aspiration, involve rational problem solving strategies

and relate to operational issues. Lastly, level makes up decisions made for the

organization which tend to be more tactical and generally involve the senior management

team, who carry strategic responsibility for their organization.

2.3 Leadership Style

Stated in today’s dictionaries, a leader is defined as an individual who rules, guides or

inspires others. Adult education could learn from and build on models of leadership from

other Fields (Rose, 1992). Shoemaker (1998) suggested that leadership is difficult to

characterize as the field is punctured by inconclusive definitions as to the role and function

of leadership. Leaders mean someone who accompanies people on a journey, guiding

them towards their destination and by implication holds them together as a group while

steering them in the right direction (McCaffery, 2004). The important part of leadership can

be representing the leadership style. Its significance stems from the contribution it makes

to the organization’s success. Gebert and Steinkamp (1991) contend that there is a close

relationship between the leadership styles used in an organization with their economic

success. In addition, leadership styles affect the speed of the product development

(McDonough and Barczak, 1991).

13

Murnighan and Leung (1976) found that undergraduate participants that have been led by

the uninvolved leaders have a less productive in both quality and quantity of the problems

they solved and lower in satisfaction compared to the participants who were led by

involved leaders. Daft (2005) stated that people in organizations all over the world are

feeling the impact of the decision making and other trends and are being forced to adapt

to the new working ways. In this context, leaders are having really difficult jobs to keep

people grounded, focused and motivated toward accomplishing targeted goals. As Daft

(2005) sees it, shifts representing a transition from traditional to new paradigms are having

a dramatic impact on organizations and presenting new challenges for leaders.

Comparing old and new paradigms of leadership, Daft contrasts stability with change and

crisis management, control with empowerment, competition with collaboration, uniformity

with diversity, self-centeredness with higher purpose and hero with humble. Such unstable

situations call for a continuous awareness of the changing human needs in the workplace,

and effective leadership practices to encourage and support people in their achievement

of the decision and organizational goals.

In the current century, a lot of educators have researched leadership contexts and

theoretical foundations of leadership. Yet, most theories on and research about leadership

look at how a person gains the understanding of the values, beliefs, and attitudes of

people from different cultures and define leadership as characterized by the traits,

qualities, and behaviors of the leader. Some argue that leadership is a process and not a

position or a characteristic, but a transactional event that occurs between leaders and

followers (Hughes, Ginnett, &Curphy, 2002; Northouse, 2004). Yukl (2006) explains that

leadership is the process of influencing others to understand and agree about what needs

14

to be done and how to do it and the process of facilitating individual and collective efforts

to accomplish shared objectives.

In contra, Saal and Knight (1988) found that leadership is not necessarily a product of

inborn traits but instead those effective leadership methods can be taught to employees.

Earlier theories and researches about leadership mentioned the internal qualities with

which a person is born but ignored the situational and environmental factors that play a

role in the leader’s level of effectiveness. Boulding (2005) also argued that good leaders

are made not born and that becoming effective leaders requires desire and personal

determination. Good leaders develop through a continuum process of self-study,

education, training, and experience. Furthermore, Yukl (1994) explains that leadership

includes personal influence directed through communication processes towards goal

attainment and influential increment over and above mechanical compliance with

directions and orders for a specified goal or goals. Nevertheless, DuBrin (1995) argues

that in order to be effective, a leader must be aware of the specific tactics needed to

influence others. The essence of leadership is not the leader but the relationship due to

what have been argued by Rost (1993) today scholars discuss the basic nature of such

leadership in terms of the "interaction" among the people involved in the process: both

leaders and followers. Thus, the leadership is not the work of a single person; rather it can

be explained and defined as a "collaborative endeavor" among group members.

Therefore, there are a lot of ways on how to lead since every leader has his or her style.

Some of the styles include autocratic, bureaucratic, democratic, and laissez-faire. The

autocratic leadership style describes that manager retains as much power possible.

Participative leadership motivates others to participate and contribute to making them be

more committed. Effective leaders involve in both personal leadership behaviors and

15

professional leadership behaviors. What means by professional leadership behaviors is to

set a mission, creating a process for achieving goals, aligning processes and procedures,

and basically these activities can be interpreted as the organizational business practices.

The personal leadership behaviors are usually referred to the leadership styles since they

involve building trust, caring for people, acting morally, etc Bennis and Nanus(1985) argue

that leadership style represents an important factor in the determination of the success or

failure of organizations.

It is adequate here to differentiate two vital aspects of leadership. The first is that of

providing direction, organizational vision and making related decisions about resource

allocation and distribution. Leaders achieve this in a lot of ways. Some use autocratic

means, while others utilize democratic or laissez faire approaches (Bernhard & Walsh,

1995; Marrelli, 1997). These leadership styles apply dissimilar sources of power and

impact contrarily on the levels and the extent to which worker consider them as making a

contribution to organizational decision making. Both the quality and extent of staff

participation in decision-making tend to vanish as we shift across the continuum from

laissez faire to autocratic leadership. Three different leadership styles, specifically

transformational, transactional, and laissez-faire, have been shown to reflect the full range

of leadership styles (Bass 1990; Bass & Avolio, 1995). Research on these leadership

styles has found that a transformational leadership style is typically more effective than

transactional and laissez-faire leadership styles. Transformational leaders are consistently

rated by subordinates as being more effective leaders and have been consistently linked

with greater organizational performance and success.

16

2.3.1 Transactional Leadership

Consequently for work exertion, transactional leadership offers pay and numerous

different advantages including the values, honesty, fairness, responsibility and

reciprocity (Yukl, 2006). Yuklalludes the exchange process as the rewards for

compliance. There are two depictions regarding the components of the

transactional behaviors. The transactional behavior comprises of three factors:

“contingent reward”, “active management by exception” and “passive management

by exception”. Northouse (2004) states those components of transactional behavior

as comprising two factors which seem to be “contingent reward” and “management

by exception”. The key component of contingent rewards alludes to the exchange

processes between leaders and followers.

On the past research has indicated transactional contingent reward style leadership

to be positively related to followers’ commitment, satisfaction, and performance

(Hunt & Schuler, 1976; Podsakoff, Todor, Grover, & Huber, 1984; Bycio, Hackett, &

Allen, 1995). Goodwin, Wofford, and Whittington (2001) depicted that there is a

positive relationship between transactional contingent reward leadership and

organizational citizenship behavior, distinguishing transactional leadership that was

more recognition based from that based on setting basic expectations and goals.

What’s more, Goodwin et al. (2001) uncovered that the recognition-based

transactional leadership, which they considered implicit contracting, was more

positively related to followers showing hierarchical citizenship behaviors than was a

transactional leadership based on explicit contracts exchange between the leader

and follower.

17

2.3.2 Transformational Leadership

Daft (2005) explains that transformational leadership is categorized by the

capability to bring about significant change. Transformational leaders have the

capability to conduct changes in the organization’s vision, strategy and culture as

well as encourage innovation in products and technologies. Burn (1978, cited by

Yukl, 1994) identifies transformational leadership as involving sharing, expressing

and mediating conflict among groups of people in addition to motivating individuals.

Yukl (1994) maintains that transformational leadership speaks of the process of

constructing the commitment to the organization’s objectives and allowing followers

to accomplish these objectives. A few theories of transformational leadership also

observe on how leaders change the structure and culture of their organization to be

reliable with management strategies for accomplishing organizational objectives.

Furthermore, Certo (1997) states that transformational leadership as containing

inspiration of organizational success by intensely affecting followers’ beliefs in what

an organization should be, as well as their values, such as justice and integrity. The

model of transformational leadership contains a continuum of transformational,

transactional, and laissez-faire forms of leadership. Each form portrays aspects of

the dynamic procedure of interaction between leader and follower but classifies

certain features and patterns to differentiate transformational leadership from

transactional and laissez-faire styles (Avolio, 1999). The transformational leader

pays specific attention to others’ needs, which, in turn, increases followers’ levels of

motivation (Bass,1998; Avolio, 1999). In addition, a leader of this type inspires

others to reach their full potential while also accepting a strong ethical

characteristic. Transformational leadership contains the ability to motivate and

inspire followers. This approach postulates that activating internal motivators

influence a person. A process-based view of leadership involves the ability to

18

motivate followers to act recognizing that the ability to successfully influence others

is the essence of leadership (Yukl, 1999). The successful and effective leader has

the ability to have their vision was accepted, as well as to inspire followers to work

toward a common end (Chemers, 2001). Effective leadership is enhanced when

leaders can motivate their followers to accept change by communicating a

persuasive vision of the future and motivating willingness to work in a new manner.

Transformational leadership is not a mutually exclusive utility employed by the

leader. As a replacement for, the leader in different circumstances and intensities

may use varying degrees of transformational leadership (Howell &Avolio, 1993).

Moreover, as there have been components of the transformational leadership style

found among the cooperative extension professionals (Paxson, Howell, Michael, &

Wong, 1993; Sandmann& Vandenberg, 1995; Brown, Birnstihl, & Wheeler, 1996;

Moore & Jones,2001), the literature also exposes arguments maintaining that

transformational leadership is the supreme effective style for the acquisition of

external funds as well. Thus, transformational leadership is thought to be critical to

the success of extramural fund acquisition, whereby leaders coherent and

communicate a vision, build a team, inspire and motivate that team, and reflect the

articulated vision over their own personal practices (Grace, 1991; Rosso, 1996;

Joyaux, 1997; Day, 1998). Sequentially, leaders employing the transformational

style are also better able to encourage beneficial relationships with funders (Grace,

1991; Joyaux, 1997; Day, 1998).Still, while the literature maintains that

transformational leadership is the most effective style in resource development

(Grace, 1991; Joyaux, 1997; Day, 1998), there is also a dearth of empirical data

with respect to the degree of success of the transformational leader.

19

Transformational leaders are slanted towards changing both individual and

organization, communicating a vision, and motivating both internal and external

constituents of the organization (Bass, 1985; Kirby, Paradise, & King, 1991;

Joyaux, 1997; Day, 1998; Kark, Shamir, & Chen, 2003). In conclusion,

transformational leadership characteristics positively relate to personal qualities of

the leader and desired organizational outcomes, such as job satisfaction and

organizational effectiveness.

2.3.3 Autocratic and Democratic Leadership

The autocratic leadership style represents that manager hold the biggest power.

These leadership styles practice totally different sources of power and impact

contrastingly on the levels and the extent to which workers believe they are making

a contribution to organizational decision making. Both the quality and extent of

workers participation in decision-making tend to reduce as we have the tendency to

move over the continuum from laissez-faire to autocratic leadership. Applied to

public good dilemmas, autocratic style leaders will do no matter what they feel is

important to provide the common well. They decide which group members ought to

contribute how much without even asking anyone for input.

Whilst the Democratic style leaders are in contra which they will involve group

members in the decision making process. Autocratic leadership can involve either

participative (shared) or consultative decision-making (Vroom &Yetton, 1973; Bass,

1990). A participative leader makes decisions in collaboration with the group

members,usually using majority rules social decision schemes, whereas a

consultative leader makes decisions, after talking with group members concerning

20

their opinions. Research on social dilemmas has shown that group members are

normally unwilling to relegate an autocratic leader to manage with conflicts over the

appropriation of public goods or the protection of public resources. For instance,

Samuelson and Messick (1986) found that rather than having a leader makes all

the decisions for them, group members preferred to divide resources equally

among themselves to avoid a resource crisis (Samuelson, 1993). And Rutte and

Wilke (1985) found that when group members faced a collective resource menace,

they preferred to solve it using the democratic solutions, such as consensus or

majority rules voting instead of using autocratic leadership.

2.3.4 Laissez-faire Leadership

Subsequent research suggested that satisfaction of followers will be lower under

laissez-faire leadership than under autocratic leadership if the latter is non-punitive

or non-punishment-based, appropriate for the followers' levels of capability, or in

keeping with the necessities of the situation. Most frequent, laissez-faire leadership

has been consistently found to be the littlest satisfying and effective management

style. The original observations of Lewin, Lippitt and White (1939) have been

supported in a variety of survey and experimental investigations of the impact of

laissez-faire leadership on subordinates' performance. Laissez-faire leadership has

the scales of Management-by-Exception (passive) and laissez-faire leadership. In

this leadership style, the leader uses Management-by- Exception (passive), which

is only intervening when goals are not achieved or a problem comes up. The

Management-by-Exception leader with a “passive” behavior would not get involved

as long as a problem is not serious. The Management-by-Exception leader

(passive) waits to take action until the mistakes are attracting his or her attention.

Laissez-faire behaviors are ones that make late decisions and give up

21

responsibility. Laissez-faire leaders do not offer feedback or support to the follower.

Laissez-faire leadership is a “hands-off” approach to leadership (Northouse, 2004).

Laissez-faire leadership is also called a “non-leadership” style. The laissez-faire

leader avoids accepting responsibilities, is absent when needed, fails to follow up

on requests for assistance, and resists expressing his or her views on important

issues. The laissez-faire leader gives the majority of control in the decision-making

process to the followers. Laissez-faire leadership assumes that followers are

naturally motivated and should be left alone to achieve goals. The laissez-faire

leader does not provide direction or guidance.

2.4 Decision Theory

The process of decision-making involves identifying and choosing alternatives based on

the values and preferences of a decision maker (Hussain, 2006). Decision making is the

important things in managerial because managerial influenced by technology and global

impact. This theory divided into two styles which are thinking style and decision style.

2.5 Decision Making Style

Now most decision-making involves some degree of agreement rather than just blind

obedience. Modern leadership is more alarmed with gaining commitment rather than

compliance. The most important part of accomplishing motivation is to attend to the most

important needs of the people being led. These include reward, safety, promotion, and

glory.

Decision-making is usually defined as a process of identifying the problems and the

possibilities for their solving (Daft, 1997), which includes the efforts before and after the

decision is made. Implementation of decisions is basically decided by the question that the

22

decision-makers are, and how much are the workers involved in the process. The need for

the change of making the decision in higher education is becoming vital. Increasingly,

students are frustrated with their experiences as education consumers. Seymour (1992)

demonstrates that students want "quality" to extend beyond the size of their school's

endowment or the research credentials of senior faculty.

Study on decision-making styles was hugely done by a lot of researchers. They are mixed

evidence on the value of diversity to organizational decision-making. The increasingly

diverse nature of workplace groups and teams has been documented since the late

1980’s (Johnson & Packer, 1987; Jackson, May & Whitney, 1995).

Since then, abundant of writers have suggested that diverse teams may be advantage-

giving to organizations, especially in performing decision-making tasks (Watson, Kumar &

Michaelsen, 1993; Lumby et al., 2005). Diverse decision-making group members bring

different experiences, values, opinions, expertise and orientations to the complex decision

making processes which lead to the identification and critical examination of diverse

decision alternatives which may, in turn, create performance gains (Jackson et al. 1995).

The State Higher Education Executive Officers convened the National Commission on

Accountability in Higher Education in 2004 to contemplate how “accountability” might

become more effective in improving performance. The Accountability Commission report,

questioning the effectiveness of top-down commands and extensive reporting, argues that

effective accountability approaches will employ clear goals, shared responsibility, a

division of labor, decisive measurement of outcomes, and shared accountability for

improvement (SHEEO, 2007). In several respects, the state examples conversed below

reflects such an approach. Maier (1963) advised that the important situational variables

concerning participative decision making could be classified as quality requirements and

23

subordinate acceptance requirements. Vroom and Yetton (1973) developed a normative

model of leadership decision-making based on Maier's classification. The Vroom-Yetton

model is one of a number of contingency models designed to provide guidance for

managers concerning when and how much subordinate participation should be used. The

model focuses attention on the nature of decisions and attempts to designate conditions

under which participation will be most successful. The Vroom-Yetton model, along with

Heller's (1971) model, might appropriately be classified as hierarchical control models that

derive their principal assumption from the rational design view of organizations. It is

recognized that Heller's work also includes much more, as it is a longitudinal field analysis

of many aspects of management decision making (Heller, Drenth, Koopman, &Rus, 1988).

Since the Vroom-Yetton model is used in this study it will be analyzed in some detail.

2.5.1 Decision Style

Decision style has been referred as "cognitive style, psychological type" or

"problem solving style” (Abdul Rahim, Md Isa, Nik Muhamad & Othman, 2009).

There have three types of decision style, which are decisive, hierarchic, flexible and

integrative. Each style will determine information use and number of options that

should be placed.

2.5.2 Hierarchical Decision Making

Hierarchic decision makers analyze a lot of information and seek input from others

(Nik Muhamad et al., 2009).The hierarchic decision makers like to challenge

varying perspectives or approaches and value making decisions that will withstand

scrutiny. Once their minds are made up, their decisions are final. This decision-

making style consolidates lots of information to produce one option. This

24

characteristic can be convenient, depending upon the application; financial

forecasting and capital procurement decisions come to mind.

2.5.3 Flexible Decision Making

Flexible decision makers are focused on speed and adaptability (Nik Muhamad et

al., 2009). The flexible decision makers acquire just enough information to decide

what to do next and will change course if necessary. This decision making style

works with few options that can change or be replaced as new information gets to

be accessible. Being flexible comes in useful when you have to make decisions in

dynamic and uncertain situations.

2.5.4 Integrative Decision Making

Integrative decision makers consider different components and work with lots of

input (Nik Muhamad et al., 2009).The integrative decision makers develop a wider

perspective of the situation and invite a wide range of perspectives. They flex as

changes arise until time is up and a decision must be made.

This decision-making style utilizes lots of information and produces lots of choices.

It’s convenient for an executive level or managerial decision making in a fast

moving, dynamic conditions where the decision has a big impact on individuals or

resources.

2.6 Research Framework

Based on the literature review, the research framework was constructed as depicted in

figure 2.1. In this study, the researchers hypothesized that the leadership style and

decision making styles influence the quality of the decision made.

25

Therefore, the proposed theoretical framework is as below.

Figure 2.1 Theoretical Framework, adopted from (Nik Muhammad et al., 2009).

LEADERSHIP STYLES:

1. Transactional

2. Transformational

3. Autocratic

4. Democratic

5. Laissez-faire

DECISION-MAKING

STYLES:

1. Hierarchic

2. Flexible

3. Integrative

DECISION QUALITY

26

CHAPTER 3: RESEARCH METHODOLOGY

3.1 Introduction

This chapter will describe the research methodology, population, sampling technique,

sample size, design, data collection method and questionnaire. Research methodology is

a process which is finding a solution to a problem in order to achieve the objective of the

study. This study conducted among the leaders of Universiti Teknologi Mara Selangor.

3.2 Research Design

The research design is a representation of a group, evaluation, and interpretation of data

based on the research questions of the study (Sekaran & Bougie, 2010). This shows that

research design will operate as a framework for the researchers in guiding collection and

analysis of data to arrive at the solution of the problem that leads to the research project.

In addition, descriptive research is managed in order to determine and illustrate the

features of all the variables in this study. The researchers interact with the participant to

distribute a survey to collect the required information.

3.3 Sampling

Sampling is the procedure of selecting a reasonable number of units or people from a

population of interest to make the study practically generalize the result back to the

population. The important steps of the sampling are to explain the population, sample

frame, and discover the sampling size and to complete the sampling process.

3.3.1 Sampling Design

This research applies Simple Random Sampling which is a probability sampling as

a sampling technique. The elements in the sampling have a known or

predetermined chance of being selected as subjects (Sekaran&Bougie, 2013).

27

The lists of leaders in Universiti Teknologi MARA Selangor are sourced from

Universiti Teknologi MARA Selangor directory. The name list of the leaders is then

copied and pasted into an Excel spreadsheet. The column next to the leaders

names which are Column A will then be pasted with the function =RANDO(). The

function =RANDO() is the method that Excel uses to place a random number

between 0 and 1. Both columns are then sorted by the random number. Next, the

list would then be rearranged from the lowest to the highest random number.

Finally, the first 130 names are selected from the final list. The questionnaires were

then distributed to the respondents via email. Since it is a Simple Random

Sampling, it is less bias and offers the most generalizability as compared to the

other sampling techniques.

3.3.2 Population of Study

Population refers to the whole team of attention according to the features. The

target population is the target of the large group of people to whom the survey

appeals for. Population chosen should be suitable with the characteristic of this

study.

The target population in this study is the leaders of Universiti Teknologi Mara

Selangor.

3.3.3 Sample Size

In order to determine the sample size, the researchers used a table that has been

simplified by Krejcie and Morgan (1970) as a guideline. Please refer to the

Appendices section to view the Krejcie and Morgan sample size guideline.

28

Based on the table, Krejcie and Morgan (1970) proposed that if the population (N)

is 130, the sample size will be 97. Additionally, according to Roscoe (1975), sample

sizes that are larger than 30 and less than 500 are appropriate for most research.

Thus, in this research, as the population for this research is 130, the sample size

that is appropriate will be 97. Unfortunately, the researchers only manage to get 52

respondents that response to the questionnaires. Thus, a 54% response rate,

which is equal to 52 respondents is considered as adequate.

3.4 Data Collection Method

Data collection methods are the most important part of research design. There are quite a

few data collection methods such as Interviews, Observation, Questionnaires, Physical

Measurements and Unobtrusive. Each of these methods has their own benefits and also

caveats.

In this research, the researchers used questionnaires as the data collection method. The

data are collected by electronic questionnaires. The benefits gained by the researchers in

using questionnaires were that it is inexpensive when administered to a group of

respondents as the questionnaires were distributed by email. It is also easier to administer

and the respondents can respond to the questionnaires at their own convenient time.

Besides that, the delivery time is very fast. However, some of the caveats are that the

respondents must be willing to complete and answer the questionnaire and electronic

questionnaires have the lowest response rate. Thus, a 30% response rate is considered

acceptable (Sekaran & Bougie, 2013).

Besides that, the researchers also used secondary data as their resources. The

secondary data were obtained from existing data such as news articles, journals, reports

29

and theses. This secondary data helps in terms of information discovery and obtaining

details about the topic chosen for this research.

3.5 Questionnaire

The questionnaire is adopted from Dulewicz, Higgs and Partington (2003). Besides that,

the questionnaire has been through normality test. The result shows that the data is drawn

from a normal distribution. The questionnaire is divided into three parts altogether. The

first part is Part A, which covers the respondents’ demographic profile. Meanwhile, Part B

consists of twenty questions regarding leadership styles. Part C consists of ten questions

regarding decision-making styles. Lastly, part D consists of five question regarding

decision quality. The respondents were asked to provide a response ranking from 1 -

Strongly Disagree to 5 – Strongly Agree based on the 5-point Likert scale.

3.6 Data Analysis

After all the data has been collected from a representative population, the researchers

then analyze the data to test the research hypothesis. The Statistical Package for the

Social Science (SPSS) program will be used to analyze the data. Some opening steps

need to be complete before the researchers continue with the analyzing process. These

steps will assure that the data are practically good to pursue further analysis.

The first step is to get the data ready for analysis such as editing the data, handling blank

responses, coding data, categorizing data, creating a data file and programming. The

second step is to get a feel for the data by checking the central tendency and dispersion

using descriptive statistics. The mean in the data will give the researchers a bright idea on

how respondents react to the questions in the questionnaire.

30

The nest step is to test the goodness of the data. The reliability and validity of the

measures can now be tested. Cronbach’s Alpha testing will be using to test the reliability

and next will be the well-validated measures are used, there is no need to establish the

validity again for the next study. Through SPSS, the researchers have used the frequency

distribution and descriptive statistics to test the variables.

3.7 Conclusion

This chapter overall explains the research methodology that describes the approach,

method and technique that are used in this study in order to collect and analyze all the

data. The data for this study will be presented and explained in the next chapter.

31

CHAPTER 4: FINDINGS AND DATA ANALYSIS

4.1 Introduction

This chapter will discuss the research findings. For this research, electronic

questionnaires were used to determine the leadership and decision styles that affecting

the decision quality among the leaders of Universiti Teknologi MARA Selangor. The total

population of leaders of Universiti Teknologi MARA Selangor is 130, thus the sample size

for this research is 97 (Krejcie & Morgan, 1970). Consideration of fact that electronic

questionnaires have the lowest response rate then, the researchers distributed 130

electronic questionnaires in order to obtain a higher response rate to achieve the desired

sample size. However, the researchers only managed to record 52 responses which are a

54% response rate.

The results of the data analysis will be described in the form of the reliability analysis,

Cronbach’s alpha of the variables, profile of the respondents, descriptive analysis,

correlation coefficient analysis and multiple regression analysis. The generated results

solely rely on the research objectives established by the researchers. Please refer to the

Appendices section for the SPSS output.

4.2 Findings and Analysis

4.2.1 Reliability Test

The Cronbach’s alpha reliability coefficient test is used to check the reliability and

validity of the collected data. The scale of measurement is used to access the

reliability of Leadership Styles, Decision-making Styles, and Decision Quality.

Cronbach’s alpha ranges from 0 to 1 (Sekaran&Bougie, 2013). The closer the

measurement is to 1, the more reliable the data, and the closer the measurement is

to 0, the lesser the data reliability. Table 4.1 shows the rule of thumb for the

32

Cronbach’s alpha coefficient value as suggested by Hair, Babin, Money, &

Samouel (2003) to measure the reliability strength.

Table 4.1 Rules of Thumb for the Cronbach’s Alpha Coefficient Value,

adopted from (Burns & Bush, 2005)

Alpha Coefficient Range Strength of Associations

0.81 – 1.00 Very strong

0.61 – 0.80 Strong

0.41 – 0.60 Moderate

0.20 – 0.40 Weak

0.00 – 0.20 None

Based on Table 4.1, the Cronbach’s alpha coefficient value above 0.81 shows very

strong data reliability strength. The alpha coefficient range of between 0.61 to 0.80

denotes strong reliability strength, whereas 0.41 to 0.60 indicates a moderate

strength. As for the range of 0.20 to 0.40, it indicates weak data reliability while any

value below 0.20 denotes the data unreliable.

Table 4.2 (a) Reliability Test for Leadership Styles

Variables

Cronbach’s Alpha No. of Items

Transactional Leadership Styles 0.833 4

Transformational Leadership Styles 0.836 4

Democratic Leadership Styles 0.737 4

Autocratic Leadership Styles 0.732 4

Laissez-faire Leadership Styles 0.722 4

33

Table 4.2 (b) Reliability Test for Decision-making Styles

Variables


Hierarchic Styles 0.831 4

Flexible Styles 0.859 3

Integrative Styles 0.916 3

Table 4.2 (c) Reliability Test for Decision Quality

Variables


Decision Quality 0.871 5

Table 4.2(a) (b) (c) above shows the reliability test for the dependent variable

Decision Quality and the independent variables Leadership Styles and Decision-

making Styles.

The reliability test analysis shows the reliability results of the Cronbach’s alpha for

the dependent variable Decision Quality at 0.871 and the independent variables

Leadership Styles that divided into Transactional Leadership Style at 0.833,

Transformational Leadership Style at 0.836, Democratic Leadership Style at 0.737,

Autocratic Leadership Style at 0.732 and Laissez-faire Leadership Style at 0.722.

And the second independent variables, Decision-making Styles divided into

Hierarchic at 0.831, Flexible at 0.859 and Integrative at 0.916, thus the strength of

the associations is strong. It is a prove that the data is reliable to continue this

research. Hence, all the variables used in this research are considered consistent

and stable.

34

4.2.2 Respondent’s Profile

This section discusses about the demographic profile which includes gender, age

and education level of the respondents and their position in the company, as well

as their working period and also their monthly gross salary. The total respondents

for this survey are 52 respondents.

Table 4.3 Profile of the Informants

Items Frequency Percentage (%)

Gender

Male 22 42.3

Female 30 57.7

Total 52 100.0

Age

Less Than 30 Years Old 2 3.8

30-39 Years Old 13 25.0

40-49 Years old 21 40.4

50-59 Years Old 16 30.8

Total 52 100.0

Education Level

Masters 14 26.9

Doctorate 38 73.1

Total 52 100.0

Working Positions

Senior Management 3 5.8

Middle Management 16 30.8

Lower Management 33 63.5

Total 52 100.0

Working Period

Less Than 5 Years 10 19.2

5- 10 Years 9 17.3

11-20 Years 27 51.9

More Than 20 years 6 11.5

Total 52 100.0

Gross Monthly Salary

RM3001-RM5000 4 7.7

RM5001-RM7000 11 21.2

RM7001-RM8000 14 26.9

More Than RM8000 23 44.2

Total 52 100.0

35

Based on Table 4.3, 30 female respondents took up 57.7% of the total number of

respondents whereas the male respondents were only 42.3% of 20 individuals.

From the table above, it can be concluded that females dominate the male

respondents.

Next, it shows that 40.4% respondents are at the age between 40 to 49 years old,

30.8% of the respondents age between 50 to 59 years old and 25% of the total

respondents are n the range of 30 to 39 years old. The lowest percentage is 3.8%

which consists of the respondents in less than 30 years old.

In terms of the level of education, 73.1% holds Doctorate Degree and the rest of

them, 26.9% hold Masters Degree.

The majority of the respondents is in the lower management (63.5%) designated as

research leaders, coordinators and project leaders and followed by middle

management (30.8%) designated as deputy dean and head of department or

program and lastly followed by senior management (5.8%) designated as dean and

campus director.

Only 11.5% of the total respondents have been working more than 20 years old. It

is followed by 17.3% which works between 5 to 7 years and 19.2% work less than 5

years. The highest percentage is 51.9% have been working between 11 to 20

years.

Almost half of the total number of respondents that took up 44.2% received a gross

monthly salary more than RM8000, while 26.9% receive in the range of RM7001 to

RM8000 followed by 21.2% of the respondents earn about RM5001 to RM7000.

And there are only 7.7% of the respondents earn between RM3001 to RM5000 per

month.

36

4.2.3 Descriptive Statistics

Descriptive statistics are usually used to describe the basic features of the data in a

study. As a recap, the dependent variable of this research is Decision Quality while

the independent variables consist of Leadership Styles and Decision-making

Styles. Leadership styles are divided into five divisions which are Transactional

Leadership, Transformational Leadership, Democratic Leadership, Autocratic

Leadership and Laissez-faire Leadership. While the Decision-making Styles are

divided into three divisions which are Hierarchic, Flexible and Integrative. The table

below shows the descriptive statistics of the variables for each item that consisted

of 52 respondents which show the mean and standard deviation.

Table 4.4 Summary of Descriptive Analysis for Each Variable

Variables

Mean Standard

Deviation

Leadership Styles Transactional 4.5144 0.42

Transformational 4.5433 0.43

Democratic 4.3221 0.51

Autocratic 4.0962 0.54

Laissez-faire 4.1010 0.61

Decision-making

Styles

Hierarchic 4.1346 0.60

Flexible 3.7628 0.63

Integrative 4.1474 0.66

Decision Quality 4.2077 0.51

37

Table 4.4 shows a descriptive analysis summary for the dependent variable

Decision Quality and the independent variables Leadership Styles and Decision-

making Styles.

It is clearly shown that the mean for Transformational Leadership Style is the

highest amongst the other variables where the total mean is 4.54 with a standard

deviation of 0.43. This is followed by Transactional Leadership Style at 4.51, with

standard deviation of 0.42, Democratic Leadership Style at 4.32 (standard deviation

= 0.0.51), Decision Quality at 4.21 (standard deviation = 0.51), Integrative Decision-

making Style at 4.15 (standard deviation = 0.66), Hierarchic Decision-making Style

at 4.14 (standard deviation = 0.60), Laissez-faire Leadership Style at 4.10

(standard deviation = 0.61) and Autocratic Leadership Style at 4.10 (standard

deviation = 0.61). Flexible Decision-making Style has the least mean of 3.76 with a

standard deviation of 0.63.

4.2.4 Correlation Coefficient Analysis

The correlation analysis and regression technique were also used in this research

to measure the relationship between the variables. The formula for calculating the

correlation coefficient from sample data is as follows:

r = [ 1 / (n - 1) ] * Σ { [ (xi - x) / sx ] * [ (yi - y) / sy ] }

where n is the number of observations in the sample, xi is the x value for

observation i, x is the sample mean of x, yi is the y value for observation i, y is the

sample mean of y, sx is the sample standard deviation of x, and sy is the sample

standard deviation of y.

38

Table 4.5 below shows the rule of thumb for interpreting the size of a correlation

coefficient for the researchers’ reference in analyzing data interpretation.

Table 4.5 Rule of Thumb for Interpreting the Size of a Correlation Coefficient,

adopted by (Hinkle, Wiersma, &Jurs, 2003)

Size of Correlation Interpretation

.90 to 1.00 (-.90 to –1.00) Very high positive (negative) correlation

.70 to .90 (-.70 to -.90) High positive (negative) correlation

.50 to .70 (-.50 to -.70) Moderate positive (negative) correlation

.30 to .50 (-.30 to -.50) Low positive (negative) correlation

.00 to .30 (.00 to -.30) Little if any correlation

Based on table 4.5, the correlation value range between 0.90 and 1.00 indicates a

very high positive correlation, followed by the high positive correlation between the

values of 0.70 to 0.90. The range 0.50 to 0.70 shows a moderate positive

correlation. On the other hand, 0.30 to 0.50 denotes a low positive correlation while

0.30 below shows a little correlation if any. The negative symbol (-) in the values

indicates a negative correlation with the same interpretation.

39

Table 4.6 Correlations Coefficient Analysis of Leadership Styles (Transactional, Transformational, Democratic, Autocratic,

Laissez-faire), Decision-making Styles (Hierarchic, Flexible, Integrative) and Decision Quality

Decision Quality

Transactional Transformational Democratic Autocratic Laissez-faire

Hierarchic Flexible Integrative

Decision Quality

1

52

Transactional

.579** 1

.000

52 52

Transformational

.366* .633** 1

.008 .000

52 52 52

Democratic

.532** .538** .683** 1

.000 .000 .000

52 52 52 52

Autocratic

.554** .799 .533** .438** 1

.000 .000 .000 .001

52 52 52 52 52

Laissez-faire

.688** .485** .304* .439** .566** 1

.000 .000 .028 .001 .000

52 52 52 52 52 52

Hierarchic

.978** .509** .244 .465** .485** .629** 1

.000 .000 .082 .001 .000 .000

52 52 52 52 52 52 52

Flexible

.627** .228 .207 .330* .335* .287* .606** 1

.000 .104 .142 .017 .015 .039 .000

52 52 52 52 52 52 52 52

Integrative

.207 .308* .160 .036 .148 .130 .208 .456** 1

.141 .026 .256 .801 .294 .359 .139 .00q

52 52 52 52 52 52 52 52 52

**. Correlation is significant at the 0.01 level (2-tailed). *. Correlation is significant at the 0.05 level (2-tailed).

40

Based on Table 4.6, the correlation coefficient between Decision Quality and

Transactional Leadership Style is moderately positive at 0.579 with a significant

level of 0.00. Decision Quality and Transformational Leadership have a low positive

correlation of 0.366 with a significant level of 0.08. Democratic, Autocratic and

Leissez-faire Leadership Style have a moderate positive correlation of 0.532, 0.554

and 0.688 respectively, with a significant level of 0.00. The correlation coefficient

between Decision Quality and Hierarchic decision-making style has a very high

positive at 0.978 with a significant level of 0.00 while Decision Quality and Flexible

decision-making style have a moderate positive correlation at 0.627 with a

significant level of 0.00 and there is very low correlation between Decision Quality

and Integrative decision-making style at 0.207 with significant level of 0.141.

4.2.5 Multiple Regression Analysis

Multiple regression is an extension of simple linear regression. It is used to predict

the value of a variable based on the value of two or more other variables. The

multiple regression analysis is used to test the following hypotheses:

H1: There is a positive effect on Decision Quality and Transactional Leadership

Style

H2: There is a positive effect on Decision Quality and Transformational Leadership

Style.

H3: There is a positive effect on Decision Quality and Democratic Leadership Style

H4: There is a positive effect on Decision Quality and Autocratic Leadership Style

H5: There is a positive effect on Decision Quality and Laissez-faire Leadership

Style

H6: There is a positive effect on Decision Quality and Hierarchic Decision-making

Style

41

H7: There is a positive effect on Decision Quality and Flexible Decision-making

Style

H8: There is a positive effect on Decision Quality and Integrative Decision-making

Style

Table 4.7 Multiple Regression Analysis

Note: *p<0.05, **p<0.01

The dependent variable in this research is Decision Quality while the independent

variables are Leadership Styles (Transactional, Transformational, Democratic,

Autocratic and Laissez-faire) and Decision-making Styles (Hierarchic, Flexible and

Integrative).

Dependent Variable: Decision Quality

Independent Variables Standardized

Coefficient (β)

Leadership Styles

Transactional .080

Transformational .114**

Democratic -.036

Autocratic -.047

Laissez-faire .115**

Decision-making

Styles

Hierarchic .824**

Flexible .109**

Integrative -.064*

R-square 0.984

42

Based on Table 4.7, the R-Square = 0.984 indicates that 98.4% of the dependent

variable which is the Decision Quality is explained by all the independent variables

such as Leadership Styles and Decision-making Styles as stated above.

The standardized coefficient or beta coefficient indicates that Transformational

Leadrship Style (β = 0.114, p < 0.01) has a significant influence on Decision

Quality. Moreover, the standardized coefficient or beta coefficient of Laissez-faire

Leadership Style (β = 0.115, p < 0.01) shows a significant effect on Decision

Quality. Hierarchic (β = 0.824, p < 0.01), Flexible (β = 0.109, p < 0.01) and

Integrative (β = -0.064, p < 0.05) Decision-making Styles also show a significant

effect on Decision Quality.

On the other hand, Transactional, Democratic and Autocratic Leadership Style are

insignificant in affecting Decision Quality. It can be concluded that only

Transactional Leadership Style, Laissez-faire Leadership Style, Hierarchic, Flexible

and Integrative Decision-making Style are significantly related to Decision Quality.

4.2.6 Hypotheses Testing

The objective of this survey was to identify the effect between Decision Quality and

the Leadership Style (Transactional, Transformational, Democratic, Autocratic and

Laissez-faire) as well as the Decision-making Style ( Hierarchic, Flexible and

Integrative) . Table 4.8 shows the results of the hypotheses test:

43

Table 4.8 Hypotheses Results

Based on Table 4.8, Transformational and Laissez-faire Leadership Style is

significant thus H2 and H5 are accepted. Thus Transformational and Laissez-faire

Leadership Style have a significant influence on Decision Quality. Hierarchic,

Flexible and Integrative Decision-making Style also have a significant influence on

Decision Quality, hence H6, H7 and H8 are supported. On the other hand,

No. Hypothesis Results

H1 There is a positive effect on Transactional Leadership

Style and Decision Quality.

Rejected

H2 There is a positive effect on Transformational

Leadership Style and Decision Quality.

Supported

H3 There is a positive effect on Democratic Leadership


Rejected

H4 There is a positive effect on Autocratic Leadership Style

and Decision Quality.

Rejected

H5 There is a positive effect on Laissez-faire Leadership


Supported

H6 There is a positive effect on Hierarchic Decision-making


Supported

H7 There is a positive effect on Flexible Decision-making


Supported

H8 There is a positive effect on Integrative Decision-making


Supported

44

Transactional, Democratic and Autocratic Leadership Style have no significant

effect on Decision Quality, so H1, H3 and H4 is rejected.

4.3 Conclusion

This Chapter overall explains about the research data analysis that gathered from all of

the respondents. The data collected can generate some conclusions and will be explained

in the next chapter.

45

CHAPTER 5: CONCLUSIONS AND RECCOMENDATIONS

5.1 Introduction

In this chapter researchers will answer all the research questions and achieved the

researchers’ objection based on the findings and all the data analysis found from the

previous chapter. The researchers also will give some recommendation for the purpose of

the study.

5.2 Conclusions

As a conclusion, this research was conducted to investigate the factors influencing

decision quality made by the leaders of UiTM Selangor.

5.2.1 Leadership Styles

Researcher also achieved research objective 1 whereby based on findings, it

showed that the level of means from transactional, transformational, democratic,

autocratic and laissez-faire is more than 4. In addition, findings show that the

highest variables among the others are transformational leadership style where the

total mean is 4.54. Fielder (1996), said that transformational leadership style may

instil effective communication, individual needs and strengths, trust, loyalty, energy,

vision and creativity within the unified process of completing a task or goal.

Independent variables such as transformational, transactional and laissez-faire

have significance affect with decision quality. From the result, transactional

leadership style has moderate relationship with decision quality at value 0.579.

Moreover, democratic, autocratic and laissez-faire has a moderate positive

relationship with decision quality with value 0.532, 0.554 and 0.688 each.

46

5.2.2 Decision Making Styles

Refer to the findings, research objective 2 showed that the total means from all

factors which are hierarchic, flexible and integrative is more than 3. However

based on outcome in this study, it showed that hierarchic and integrative was the

most decision making style that influence leaders in UiTM Selangor. These happen

because there is not much difference figure between hierarchic and integrative.

For decision making style, hierarchic has a very high positive relationship at value

0.978 while flexible decision making style has moderate positive relationship at

value 0.627. Lastly, integrative decision making style has very low relationship with

decision quality at value 0.207.

5.3 Recommendations

There are several recommendation that the researcher would like to suggest in order to

improve the decision making quality. By giving the recommendations, it may help future

researchers in other researcher.

5.3.1 Improve skills of leadership and decision style.

Leadership and decision style need some changing by apply the right styles of

leadership and decision style that may help leaders to contribute higher productivity

in decision quality. Researchers recommended to leaders by studies in larger

scope in both institutions which are other branches, private and public institutions.

Besides, from both view and observations, leaders may seek more collaboration

with other institutions to exchange knowledge in making quality decision.

Collaborations with other institutions or branches, it can improve leaders ideas and

be more creative that will benefit to them.

47

5.3.2 Documented Decision Making Process

Based on this study, researchers suggest to leaders by documented all the

leadership and decision making information for future researcher. As a example, to

be expert leaders in organizations, leaders should know technique on decision

making that can be absorb from local leaders and all the technique should compile

in documentations.

48

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53

APPENDICES

1. Questionnaire

DETERMINANTS OF DECISION MAKING QUALITY: STUDIES ON LEADERS OF

UNIVERSITI TEKNOLOGI MARA SELANGOR

Dear Respondents,

We are students from Universiti Teknologi MARA (UiTM), Faculty of Business Management,

pursuing the degree in Bachelor of Business and Administration (BBA) Hons. International

Business. Currently conducting a research on “DETERMINANTS OF DECISION MAKING

QUALITY: STUDIES ON LEADERS OF UNIVERSITI TEKNOLOGI MARA SELANGOR” for

our final year project.

Please take note that this survey is strictly for academic purposes and we would like to assure

you that all the information collected will remain PRIVATE AND CONFIDENTIAL. We greatly

appreciate you for taking the time, efforts and participation in completing this questionnaire.

Thank you for cooperation.

Regards,



54

PART A: Demographic

Please provide us with some basic information about you. Tick ( / ) the best suitable answer.

1. Gender

Male Female

2. Age

Less than 30 years 30 – 39 years old

40 – 49 years old 50- 59 years old

More than 59 years old

3. What is the highest level of education that you have been completed?

Diploma Degree

Master Doctorate

Professional

4. What is your designation/ position now?

Top Management (VC, TNC, Registrar, etc)

Senior Management (Dean, Director of Campus, Directors)

Mid Management (Dep. Dean, Head of Programs, Head of Department)

Lower Management (Others, e.g. Research Leader, Project Leader, etc)

55

5. How many years have you been with your present organization?

Less than 5 years 5 – 10 years

11 – 20 years More than 20 years

6. What is your gross monthly salary?

Less than RM3000 RM3001 - RM5000

RM5001 – RM7000 RM7001 – RM8000

More than RM8000

Instructions: The following pages contain a number of statements with which some

people agree and others disagree. Please rate how much you personally agree or

disagree with these statements. Please circle your answer.

Strongly Disagree

Disagree Neutral Agree Strongly Agree

1 2 3 4 5

PART B: LEADERSHIP STYLES

As a leader, in making a decision, I must make sure that…

1 Let my staff work in the way they think best 1 2 3 4 5

2 Create a positive mood 1 2 3 4 5

3 Cooperate effectively with others to achieve goals 1 2 3 4 5

4 Remain focused on vision and goals 1 2 3 4 5

5 Advocate the imperative for change and innovation 1 2 3 4 5

6 Regard challenges as opportunities 1 2 3 4 5

7 Accept criticism and learn from it 1 2 3 4 5

8 Listen attentively to what people say 1 2 3 4 5

9 Persuade others that my ideas are to their advantage 1 2 3 4 5

10 Encourage staff to be a part in the decision making 1 2 3 4 5

11 Encourage overtime working hour 1 2 3 4 5

12 Encourage the use of standard procedure 1 2 3 4 5

13 Schedule the work to be done 1 2 3 4 5

14 Permit staff to set their own pace for change 1 2 3 4 5

15 Urge staff to beat previous target 1 2 3 4 5

56

PART C: DECISION MAKING STYLES

For the decision I have made

1 It was made by reference to my organization’s well developed system of policies and procedures

1 2 3 4 5

2 Guided by an understanding and acceptance of the basic organizational strategy

1 2 3 4 5

3 Guided by well defined objectives 1 2 3 4 5

4 Guided by the commitment of the personnel of the organization 1 2 3 4 5

5 Is highly systematic and analytical process which involves only the senior management and generally takes place slowly

1 2 3 4 5

6 Is a flexible and ad-hoc process which involves anyone who has a contribution to make and generally takes place very quickly

1 2 3 4 5

7 Is participative and consensus-based process which involves anyone who is interested in the issue being considered, and generally proceeds slowly

1 2 3 4 5

8 Make quick decisions when necessary 1 2 3 4 5

9 Decide quickly, display confidence, act independently if required 1 2 3 4 5

10 Analyze situations carefully, make rational judgements and logical decisions

1 2 3 4 5

PART D: DECISION QUALITY

1 Decision-making quality is extremely important 1 2 3 4 5

2 It takes a long time for me to reach a decision 1 2 3 4 5

3 Cooperate effectively with others is very important to achieve goals 1 2 3 4 5

4 My colleagues and friends were directly involved in assisting me for making a decision

1 2 3 4 5

5 Following the rule and regulations is very important when making decision

1 2 3 4 5

16 Give purpose and direction, convey a collective sense of mission and emphasize task importance

1 2 3 4 5

17 Encourage people to lead, model behaviour expected, offer challenging assignments

1 2 3 4 5

18 Develop strong working relationships, build rapport quickly 1 2 3 4 5

19 Ask staff to follow standard rules and procedures 1 2 3 4 5

20 Allow staff complete freedom in their work 1 2 3 4 5

57

2. Krejcie and Morgan’s table

Sample Size for a Given Population Size

N S N S N S

10 10 15 14 20 19 25 24 30 28 35 32 40 36 45 40 50 44 55 48 60 52 65 56 70 59 75 63 80 66 85 70 90 73 95 76 100 80 110 86 120 92 130 97 140 103 150 108 160 113 170 118 180 123 190 127 200 132 210 136

220 140 230 144 240 148 250 152 260 155 270 159 280 162 290 165 300 169 320 175 340 181 360 186 380 191 400 196 420 201 440 205 460 210 480 214 500 217 550 226 600 234 650 242 700 248 750 254 800 260 850 265 900 269 950 274 1000 278 1100 285

1200 291 1300 297 1400 302 1500 306 1600 310 1700 313 1800 317 1900 320 2000 322 2200 327 2400 331 2600 335 2800 338 3000 341 3500 346 4000 351 4500 354 5000 357 6000 361 7000 364 8000 367 9000 368 10000 370 15000 375 20000 377 30000 379 40000 380 50000 381 75000 382 1000000 384

58

3. SPSS Output

Reliability Test

1. Leadership Style

a) Transactional Leadership

Cronbach's Alpha Cronbach's Alpha Based on

Standardized Items

N of Items

.833 .833 4

b) Transformational Leadership


Standardized Items

N of Items

.836 .839 4

c) Autocratic Leadership


Standardized Items

N of Items

.732 .742 4

d) Democratic Leadership


Standardized Items

N of Items

.737 .739 4

e) Laissez-faire Leadership


Standardized Items

N of Items

.722 .727 4

59

2. Decision Making Style

a) Hierarchic Style

Cronbach's Alpha

Cronbach's Alpha Based on

Standardized Items

N of Items

.831 .850 4

b) Flexible Style

Cronbach's Alpha


Standardized Items

N of Items

.859 .859 3

c) Integrative Style

Cronbach's Alpha


Standardized Items

N of Items

.916 .919 3

3. Decision Making Quality

Cronbach's Alpha


Standardized Items

N of Items

.871 .873 5

4. All Variables

Cronbach's Alpha


Standardized Items

N of Items

.939 .943 35

60

Respondent Profile a) Gender

Gender

Frequency Percent Valid Percent Cumulative Percent

Valid

Male 22 42.3 42.3 42.3

Female 30 57.7 57.7 100.0

Total 52 100.0 100.0

b) Age

Age

Frequency

Percent Valid Percent

Cumulative

Percent

Valid

Less than 30 Years Old

2 3.8 3.8 3.8

30-39 Years Old 13 25.0 25.0 28.8

40-49 Years Old 21 40.4 40.4 69.2

50-59 Years Old 16 30.8 30.8 100.0

Total 52 100.0 100.0

c) Education Level What is the highest level of education that you have completed?

Frequency Percent Valid Percent Cumulative Percent

Valid

Masters 14 26.9 26.9 26.9

Doctorate 38 73.1 73.1 100.0

Total 52 100.0 100.0

d) Designation/ Position

What is your designation /position now?

Frequency


Cumulative Percent

Valid

Senior Management

3 5.8 5.8 5.8

Mid management 16 30.8 30.8 36.5

Lower Management

33 63.5 63.5 100.0

Total 52 100.0 100.0

61

e) Working Years How many years have you been with your present organization?

Frequency


Cumulative Percent

Valid

Less than 5 years

10 19.2 19.2 19.2

5-10 years 9 17.3 17.3 36.5

11-20 years 27 51.9 51.9 88.5

More than 20 years

6 11.5 11.5 100.0

Total 52 100.0 100.0

f) Gross Monthly Salary

What is your gross monthly salary?

Frequency


Cumulative Percent

Valid

RM3001-RM5000

4 7.7 7.7 7.7

RM5001-RM7000

11 21.2 21.2 28.8

RM7001-RM8000

14 26.9 26.9 55.8

More than 8000

23 44.2 44.2 100.0

Total 52 100.0 100.0

Descriptive Statistic

1. Leadership Style

a) Transactional Leadership Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

Urge staff to beat previous target

52 4.00 5.00 4.5577 .50151

Give purpose and direction, convey a collective sense of mission and emphasize task importance

52 4.00 5.00 4.5962 .49545

Encourage people to lead, model behavior expected, offer challenging assignments

52 4.00 5.00 4.4615 .50338

Develop strong working relationships, build rapport quickly

52 3.00 5.00 4.4423 .57440

Valid N (listwise) 52

62

b) Transformational Leadership

Descriptive Statistics


Cooperate effectively with others to achieve goals

52 4.00 5.00 4.5962 .49545

Remain focused on vision and goals

52 4.00 5.00 4.5769 .49887

Advocate the imperative for change and innovation

52 3.00 5.00 4.5000 .57735

Regard challenges as opportunites

52 3.00 5.00 4.5000 .54233


c) Democratic Leadership



Create a positive mood 52 2.00 5.00 4.3846 .69038 Accept critism and learn from it

52 3.00 5.00 4.3269 .67798

Listen attentively to what people say

52 3.00 5.00 4.2692 .71717

Encourage staff to be a part in the decision making

52 3.00 5.00 4.3077 .64286


d) Autocratic Leadership



Persuade others that my ideas are to their advantage

52 2.00 5.00 3.6731 .75980

Encourage the use of standard procedure

52 2.00 5.00 4.1538 .80158

Schedule the work to be done

52 3.00 5.00 4.3462 .59027

Ask staff to follow standard rules and procedures

52 3.00 5.00 4.2115 .72319


63

e) Laissez-faire Leadership



Let my staff work in the way they think best

52 2.00 5.00 4.3077 .82933

Encourage overtime working hour

52 2.00 5.00 4.0577 .80229

Permit staff to set their own pace for change

52 2.00 5.00 3.9808 .85154

Allow staff complete freedom in their work

52 2.00 5.00 4.0577 .80229


2. Decision –making Quality

a) Hierarchic



It was made by reference to my organization's well developed system of policies and procedures

52 1.00 5.00 3.9615 .88476

Guided by an understanding and acceptance of the basic organization strategy

52 3.00 5.00 4.2115 .60509

Guided by well defined objectives

52 2.00 5.00 4.1731 .80977

Guided by commitment of the personnel of the organization

52 3.00 5.00 4.1923 .56146


b) Flexible



Is highly systematic and analytical process which involves only the senior management and generally takes place slowly

52 3.00 5.00 3.7885 .72319

Is a participative and consensus-based process which involves anyone who is interested in the issues being considered, and generally proceeds slowly

52 3.00 5.00 3.8462 .72449

64

Is a flexible and ad-hoc process which involves anyone who has contribution to make and generally takes place reasonably quickly

52 3.00 5.00 3.6538 .68269


c) Integrative



Make quick decisions when necessary

52 3.00 5.00 4.1538 .72449

Decide quickly, display confidence, act independently if required

52 2.00 5.00 4.0962 .77357

Analyze situations carefully, make rational judgments and logical decisions

52 3.00 5.00 4.1923 .62743


3. Decision Quality



Decision making quality is extremely important

52 3.00 5.00 4.0577 .66902

It take a long time for me to reach a decision

52 3.00 5.00 4.2115 .60509

Cooperate effectively with others is very important to achieve goals

52 3.00 5.00 4.2308 .67491

My colleagues and friends were directly involved in assisting me for making decision

52 3.00 5.00 4.1923 .56146

Following the rule and regulations is very important when making decision

52 3.00 5.00 4.3462 .62260


65

Correlations

Correlations

transactiona

l leaders

transformati

onal leaders

democratic

leaders

autocratic

leaders

laissezfaire

leaders

Hierarchic

styles

flexible

styles

integrative

styles

Decision

Quality

transactional leaders

Pearson

Correlation

1 .663** .538

** .799

** .485

** .509

** .228 .308

* .579

**

Sig. (2-tailed) .000 .000 .000 .000 .000 .104 .026 .000

N 52 52 52 52 52 52 52 52 52

transformational

leaders

Pearson

Correlation

.663** 1 .683

** .533

** .304

* .244 .207 .160 .366

**

Sig. (2-tailed) .000 .000 .000 .028 .082 .142 .256 .008

N 52 52 52 52 52 52 52 52 52

democratic leaders

Pearson

Correlation

.538** .683

** 1 .438

** .439

** .465

** .330

* .036 .532

**

Sig. (2-tailed) .000 .000 .001 .001 .001 .017 .801 .000

N 52 52 52 52 52 52 52 52 52

autocratic leaders

Pearson

Correlation

.799** .533

** .438

** 1 .566

** .485

** .335

* .148 .554

**

Sig. (2-tailed) .000 .000 .001 .000 .000 .015 .294 .000

N 52 52 52 52 52 52 52 52 52

laissezfaire leaders

Pearson

Correlation

.485** .304

* .439

** .566

** 1 .629

** .287

* .130 .688

**

Sig. (2-tailed) .000 .028 .001 .000 .000 .039 .359 .000

N 52 52 52 52 52 52 52 52 52

Hierarchic styles

Pearson

Correlation

.509** .244 .465

** .485

** .629

** 1 .606

** .208 .978

**

Sig. (2-tailed) .000 .082 .001 .000 .000 .000 .139 .000

N 52 52 52 52 52 52 52 52 52

66

flexible styles

Pearson

Correlation

.228 .207 .330* .335

* .287

* .606

** 1 .456

** .627

**

Sig. (2-tailed) .104 .142 .017 .015 .039 .000 .001 .000

N 52 52 52 52 52 52 52 52 52

integrative styles

Pearson

Correlation

.308* .160 .036 .148 .130 .208 .456

** 1 .207

Sig. (2-tailed) .026 .256 .801 .294 .359 .139 .001 .141

N 52 52 52 52 52 52 52 52 52

Decision Quality

Pearson

Correlation

.579** .366

** .532

** .554

** .688

** .978

** .627

** .207 1

Sig. (2-tailed) .000 .008 .000 .000 .000 .000 .000 .141

N 52 52 52 52 52 52 52 52 52

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).

67

Multiple Regression

Model Summaryb

Model R R Square Adjusted R Square Std. Error of the

Estimate

1 .992a .984 .981 .07113

a. Predictors: (Constant), integrative styles, democratic leaders, laissez-faire leaders, flexible

styles, autocratic leaders, transformational leader, Hierarchic styles, transactional leaders

b. Dependent Variable: Mean Decision Quality

ANOVAa

Model Sum of Squares df Mean Square F Sig.

1

Regression 13.059 8 1.632 322.644 .000b

Residual .218 43 .005

Total 13.277 51

a. Dependent Variable: Mean Decision Quality

b. Predictors: (Constant), integrative styles, democratic leaders, laissez-faire leaders, flexible

styles, autocratic leaders, transformational leaders, Hierarchic styles, transactional leaders

Coefficientsa

Model Unstandardized Coefficients Standardized

Coefficients

t Sig. Collinearity Statistics

B Std. Error Beta Tolerance VIF

1

(Constant) .041 .126 .328 .744

Mean transactional leaders .097 .056 .080 1.718 .093 .174 5.736

Mean transformational

leaders

.135 .039 .114** 3.489 .001 .354 2.825

Mean democratic leaders -.036 .031 -.036 -1.157 .254 .390 2.562

Mean autocratic leaders -.044 .037 -.047 -1.185 .243 .245 4.077

Mean laissezfaire leaders .097 .024 .115** 3.984 .000 .458 2.185

Mean Hierarchic styles .709 .031 .824** 23.068 .000 .299 3.348

Mean flexible styles .089 .027 .109** 3.324 .002 .354 2.826

Mean integrative styles -.050 .021 -.064* -2.415 .020 .544 1.839

a. Dependent Variable: Mean Decision Quality

68

69

DETERMINANTS OF DECISION MAKING QUALITY STUDIES ON LEADERS OF UNIVERSITI TEKNOLOGI MARA SELANGOR

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