Leadership Style Effect on Hotel Employees’ Outcomes: A Comparative Case Study of Hotels in Saudi Arabia and UAE
Abstract
The effect of leadership style on employee outcomes in the hotel industry represents a vibrant and growing research field. However, studies of this kind in the Middle East are limited. This research aims to fill this gap by investigating the impact of leadership style on employee outcomes in Saudi Arabia and UAE hotels using the Full Range Leadership Theory (FLRT) as a theoretical basis. The results of a survey of 136 employees revealed that both transformational and transactional styles of leadership have influence on such outcomes as job satisfaction, extra effort, organisational commitment and intention to quit. For Transformational leadership, the primary mechanisms of action were idealised influence (attributed), inspirational motivation, and intellectual stimulation. For transactional leadership, the primary mechanism of action was external rewards. Notably, absence of leadership (laissez-faire) positively influenced intention to quit. Theoretical and practical implications of the research are discussed and future research directions are offered.