The Impact of Servant Leadership on Employee's Performance in the

Manufacturing Sector of Pakistan

MOHTASHIM ALI KHAN (Corresponding Author)
Superior College of Accountancy Lahore,
Email id: mohtashim.solanki@gmail.com
ALI GUL
Superior College of Accountancy Lahore,
Email id: alig6533@gmail.com
ADNAN TARIQ
Superior College of Accountancy Lahore,
Email id: adnantariq113@gmail.com
NOUMAN ABBAS
Superior College of Accountancy Lahore,
Email id: nomybutt08@hotmail.com

Abstract:
As different leadership style impacts the organization's productivity, it is necessary for the leaders

of the organization to implement the relevant leadership style so that organization's productivity

and employees level of motivation and ultimately commitment can be increased in the

organization. One of the recent trend and type of participative management style is servant

leadership. The purpose of the study is to clarify the impact of servant leadership on the employee's

performance. For that purpose, the quantitative data techniques are used. 240 self-administrated

questionnaires were distributed among the employees of telecommunication sector in this respect

out of which 190 were collected form the educated employees of telecommunication sector.

Random sampling technique is used in this research. The response rate is though calculated to be

80%. Pearson moment correlation and linear regression analysis are used to analyze the provided
data. The findings indicate that servant leadership is positively related to the employee

performance The main interests that could be achieved by applying servant leadership are

employee loyalty, pride and commitment. Hence, the study tells us about the impact of servant

leadership on employee's performance.

Keyword: Servant Leadership, Employees Performance, Manufacturing Sector

Introduction

Servant leadership is basically a phenomena and a philosophy to increase the productivity and

promote the team work among the workers for the betterment of the organization and their

individual lives. Competitive advantages often use to reshaping the lives of individuals by sharing

the ideas and knowledge and skills and implementation of these skills and ideas for the betterment

of not only the organization but as well as the individual workers. ( Hoegl & Parboteeah, 2007;

Janssen, van de Vliert, & West,2004; Liao, Liu, & Loi, 2010).Servant leaders plays a vital role in

sustainability and in growth of the followers and downline management. (Giampetro-Meyer,

Brown, Browne, & Kubasek, 1998). Servant leadership also insures the good governess and

fairness among the workers. (Hu & Liden, 2011; Kark & Carmeli,2009; Liden, Wayne, Zhao, &

Henderson, 2008; Schaubroeck, Lam, &Peng, 2011; Sendjaya, Sarros, & Santora, 2008; van

Dierendonck, 2011). Servant leadership is a leadership style which encourage leaders to serve the

workers effectively and efficiently to complete the given task in hospitality industry. (Brownell,

2010). The traditional management having views on staff members serve as a whole because of it

gives longer time guarantee and longtime services to the customers (Yang, 2007).
Literature Review:

Servant leadership is the name to serve the employees of the organization by fulfilling their desires

and needs. This it develops the confidence in the employees for the organization. This motivates

the employees to work harder for the organization. This increase the performance of the employees

and increases the productivity. A leader became a leader when he is able to fill the basic needs of

the employees and is able to work for them otherwise he is only a business man but not a leader.

Servant leadership tells a person to work in a friendly environment. Servant leadership promotes

team building and helping each other in the time of need. This increase the performance of the

staff of the organization and make them able to work collectively to achieve the goals. Servant

leadership refers to assist the individuals to enhance the self-interest and satisfying the needs of

other people (Greenleaf 1977). This shows that a person who is following the rules of servant

leadership, sacrifice himself over needs and comfort of others with maximum resources and satisfy

the needs of his followers up to their choices. Servant leadership is the phenomenon that leads to

the good feedback of the employees about the manager and the organization, they are working for.

Servant leadership enhance the individual ability towards the achievements refers to the

organization and some personal and organizational needs, and emphasis over the individual work

quality (Hale & Fields, 2007; Smith, Montagno, & Kuzmenko, 2004; van Dierendonck, 2011).

This tells that a servant leader is a person that controls all the resources that could be used for the

goodness of others and especially for the employees of the organization and he tries to use these

resources for the benefit of others. Servant leadership, thus help to control the emotions of the

employees of the organization and let the managers use these for the benefit of the organization.

servant leaders, lead the employees to a new level of the motivation and the performance that could

not be obtained by any other method. Servant leaders find it very easy to bend the emotions of
their employees in their favor and thus the employee performance increases by the span of time

passes.

This is explained by Mathieu and Taylor (2007) that complex phenomenon of Servant leadership

could be understood by comprehensive and extensive investigation and study. Servant leadership

is a complex and comprehensive phenomenon, the study of which leads to the increase in the

employee performance and hence the productivity and output of the organization.

Hypothesis:

H: There is an impact of servant leadership on employee performance

Proposed Model:

Servant Employee
Leadership Performance

Research Methodology:

The purpose of the study is to examine the impact of servant leadership on the employee

performance for study purposes. The data is collected through the self-developed and self-

administrated questionnaires that were distributed among the manufacturing sector. 240

questionnaires were distributed to the manufacturing sector out of which 190 questionnaires were

received. Hence, the response rate of manufacturing sector is 80%. There are two variables in the

study that are investigated in the study. First is servant leadership and second is employees

performance. The questionnaires are used to gather the secondary data. Convenient sampling

technique was used to assure the accurate outcomes. The SPSS 21 was used for data analysis.
Results:

Table # 1: Demographical Information

Category Classification Frequency Percentage %

Gender Male 129 67.9

Female 61 32.1

Age 21-30 143 75.3

<30-40 46 24.2

<40-50 0 0.0

<50 And Above 1 0.5

Marital Status Single 49 25.8

Married 141 74.2

This table shows that the data collected through the questionnaire from the telecommunication

sector contains 129 males which is 67.9% of the total and 61 females that shows 32.1% of the total

sampled population. This shows that majority of the data is collected from males of this sector.

The population contains 143 people of the age of 21-30 year that makes 75.3% of the total sample,

46 of the age of <30-40 years which is 24.2% of total sample, 0 of <40-50 years which shows that

there is no person of age band of <40-50 and 1 of the age of above 50 which makes 0.5% of total

sample value. It means that majority of the data is collected from the young employees from the

age band of 21-30 years. The row of marital status shows that there are 41 single persons that make
25.8% and 141 married that makes the 74.2% of total sample of the study. This shows that most

of the employees of this sector are married through which the data is collected.

Table # 2: Correlation

Ethical Leadership Creativity

Ethical Leadership Pearson correlation 1 .636**

.000

Creativity Pearson correlation .636** 1

.000

This table shows a value of (.636**) that shows that the ethical leadership and the creativity have

a highly significant moderate positive relationship exist between them.

Table # 3: Regression

Model R R square

1 .636a .404

Table # 3 shows that the value of multiple coefficients correlation is R which is 0.636a and the

value of R Square is 0.404. this shows that there is a 40.4% change in creativity due to the ethical

leadership.

Table # 4: ANOVA
 Model Sum of DF Mean F Significant

squares Square

Regression 19.535 1 19.535 127.546 .000b

Residual 28.794 188 .153

Table # 4 shows the value of F which is (127.546) that is statically significant. The model is fit

because the significant value is .000b which means that the relationship between independent

variable ethical leadership opens the change and the dependent variable creativity is highly

significant.

Table # 5: Coefficient

Model Unauthorized Coefficient Standardized t Sig.

Coefficient

B Std. Error Beta

Constant 1.369 .212 6.447 .000

Ethical Leadership .632 .056 .636 11.294 .000

Employee Performance = 1.369 + 0.632 (Servant Leadership)

This equation shows that if there is 1% change in servant leadership, there will be a change of

63.2% in employee performance.

Conclusion:

This is the study based on checking the impact of the servant leadership on the employee's

performance in an organization. the main purpose of this study is to evaluate and examine the

effects of the implication of servant leadership upon the performance of the employees and how it

is helpful to improve the output and productivity. The results tell us that most of the data is
collected form the rational and relevant employees of the manufacturing sector and thus, the result

and the findings are accurate and just. The main interests that could be achieved by applying

servant leadership are employee loyalty, pride and commitment. Hence, the study tells us about

the impact of servant leadership on employee's performance.

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