THE ROLE OF TRANSFORMATIONAL LEADERSHIP ON CRISES MANAGEMENT SYSTEM IN THE KSA BANKING ORGANIZATIONS "HUMAN RESOURCES MANAGEMENT - IAEME Publication
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International Journal of Management (IJM)
Volume 12, Issue 4, April 2021, pp.351-365, Article ID: IJM_12_04_031
Available online at http://iaeme.com/Home/issue/IJM?Volume=12&Issue=4
ISSN Print: 0976-6502 and ISSN Online: 0976-6510
DOI: 10.34218/IJM.12.4.2021.031
© IAEME Publication Scopus Indexed
THE ROLE OF TRANSFORMATIONAL
LEADERSHIP ON CRISES MANAGEMENT
SYSTEM IN THE KSA BANKING
ORGANIZATIONS
“HUMAN RESOURCES MANAGEMENT
PERSPECTIVES”
Majed Radi ALzoubi
Associate Professor, Department of Human Resource Management,College of Business
(COB), Rabigh, king Abdulaziz University, Saudi Arabia
ABSTRACT
Context/literature: leadership is considered one of the most important and
influential elements relied upon in facing crises, it is the owner of the insightful vision
and the diverse experiences to make quick decisions at specific times to correct
emergency situations.
Purposes: Is to demonstrate the role of transformational leadership in dealing with
crises in the banking sector in the Kingdom of Saudi Arabia, through the following
goals: 1- Explore the level of preparedness for crisis management from the point of view
of HR in the Banking sector in the KSA. 2-Study and analyze the impact of transforming
leadership practice on crisis management in the Banking sector in the KSA.
Research method: This study is an illustrative in terms of purpose, as it links cause
with effect. The study population consists of all supervisors and heads of departments
at the middle administrative levels in the KSA banks. Total of (158) valid questionnaires
were recovered for analysis. A descriptive and analytical approach was applied to the
study such as Average means, Alpha’s Cronbach, Pearson Correlation, and Regression
Analysis
Findings: The study examined an emerging topic in the Saudi Banking sector, and
the role of transformational leaders in managing the challenges during crises. The
statistical output result indicated clearly that there is an effect of transformational
leadership (the ideal effect, intellectual counseling, individual considerations,
Motivation, empowerment) on Crises Management system.
Conclusion & recommendations: The KSA banks attaches great importance to
Transformational leadership dimensions to be applied in the financial system,
completable with high concern with crisis management, as the foresight variable to
confront the dramatic financial changes in the world.
http://iaeme.com/Home/journal/IJM 351 editor@iaeme.comThe Role of Transformational Leadership on Crises Management System in the KSA Banking
Organizations “Human Resources Management Perspectives”
The main recommendation point is urging Banking institutions in KSA to create
specialized crisis management units, directed by qualified transformational leaders
from various administrative levels in the banks.
Key words: Transformational Leadership, Crisis Management, KSA
Cite this Article: Majed Radi ALzoubi, The Role of Transformational Leadership on
Crises Management System in the KSA Banking Organizations “Human Resources
Management Perspectives”, International Journal of Management (IJM), 12(4), 2021,
pp. 351-365.
http://iaeme.com/Home/issue/IJM?Volume=12&Issue=4
1. INTRODUCTION
Contemporary organizations are working to build their different capacities to face the various
crises; due to the global, regional and local environmental and economic changes. This situation
has made organizations suffer from these challenges and difficulties and how to face them and
ways to deal with them, which requires finding innovative ways instead of the traditional
methods and procedures to confront these crises. The presence of transformational leadership
in organizations is one of the most important components of successful management, and the
administrative process with its various elements is inherent in the work of transformational
leadership at various administrative levels.
It obvious that the amount of success that the organization achieves in the business
environment depends on the capabilities and presence of leaders with an insightful vision in the
framework of effectiveness, efficiency and suitability for the specified goals at all
administrative levels and in various leadership positions to deal with the crisis and its warning
signals, discover it, and provide various preventive means to reduce it (Boyle p, 2001).
The leader's task is not to wait for crises to occur and then to solve them, but rather it is the
leader's duty to anticipate the occurrence of crises through his insightful vision to contain the
crisis and his ability to take precedence in decision-making, as well as developing the
appropriate strategy to reduce the impact of the crisis, and perhaps this matter gives great
importance to the features.
1.1 Study Importance
The importance of this study stems from the fact that it is examining an emerging topic in the
Saudi Banking sector, and the role of transformational leaders in managing the challenges
during this difficult time of Covit 19 pandemic period, which affected the global Banking
system.
The current century has witnessed very large economic, financial, social and technological
challenges, which requires the economic institution to cope with high uncertainties in the
market; in order to maintain its presence in the market and achieve growth. These rapid and
complex challenges require the leaders of the Banking organizations to deal with them
efficiently, and surly enhancing the empowerment of leader’s philosophy to face the challenges
of ongoing changes facing the banking industry in this era (Yamori, N., 2015).
Therefore, leadership is considered one of the most important and influential elements relied
upon in facing crises, it is the owner of the insightful vision and the diverse experiences to make
quick decisions at specific times to correct emergency situations. It is necessary to have a
transformational leadership capable of analyzing and determining the course of action and
direction of the crisis, by issuing decisions and orders in light of comprehensive vision of the
crisis situation and reached the optimal use of the available resources, as well as setting up
http://iaeme.com/Home/journal/IJM 352 editor@iaeme.comMajed Radi ALzoubi
controls to ensure a high level of readiness to limit the damage and prevent the crisis from
spreading in the Banking system (Aydin Balyer, 2012).
1.2 The Objectives of the Study
The main objective of the study is to demonstrate the role of transformational leadership in
dealing with crises in the banking sector in the Kingdom of Saudi Arabia, through the following
goals: -
• Explore the level of preparedness for crisis management from the point of view of HR
in the Banking sector in the KSA
• Study and analyze the impact of transforming leadership practice on crisis management
in the Banking sector in the KSA
• Highlighting the transformational leadership role in dealing with crisis in its various
stages.
• Shedding light on the characteristics of transformational leadership to address crises
objectively and rationally.
• Presenting some recommendations and proposals to activate the role of transformational
leaders in crisis management, to raise the behavioral features of them, besides activating
the role of crisis management of the Banking sector in the KSA.
1.3 Problem of the Study
The banking sector in the world is witnessing very critical economic, financial, and social
challenges, which requires the banking institution to adapt to these changes, in order to maintain
its strategic position in the market and achieve the required growth. These changes, their
acceleration and complexity, in the light of Corona pandemic, required the leaders of the
organizations to deal with this crisis efficiently and competently, and perhaps the ability of
transformational leaders in the banking sector is under pressure in the Kingdom of Saudi Arabia
to face the various challenges and accompanying global crises, which become one of the main
challenges facing the banking sector in this era.
Accordingly, the main study question can be formulated: What is the role of
transformational leadership in the activation of crises management system in the KSA banking
sector?
1.4 The main question has broken into the following sub-questions:
• What is the relative importance of transformational leadership role in the KSA
banking sector?
• What is the relative importance of Crises Management System activation in the KSA
banking sector?
• What is the impact of transformational leadership role on Crises Management System
activation in the KSA banking sector?
1.5 Study Hypothesis
The Main hypothesis is:
H01: There is a significantly impact of transformational leadership at the level of (P≤ 0.05)
on crisis management 0f the Banking sector in the KSA.
The main hypothesis has broken to five sub hypotheses: -
H01-1: There is a significantly impact of Ideal effect at the level of (P≤ 0.05) on crisis
management 0f the Banking sector in the KSA
http://iaeme.com/Home/journal/IJM 353 editor@iaeme.comThe Role of Transformational Leadership on Crises Management System in the KSA Banking
Organizations “Human Resources Management Perspectives”
H01-2: There is a significantly impact of intellectual counseling at the level of (P≤ 0.05) on
crisis management 0f the Banking sector in the KSA
H01-3: There is a significantly impact of individual consideration at the level of (P≤ 0.05)
on crisis management of the Banking sector in the KSA
H01-4: There is a significantly impact of motivation at the level of (P≤ 0.05) on crisis
management 0f the Banking sector in the KSA
H01-5: There is a significantly impact of empowerment at the level of (P≤ 0.05) on crisis
management 0f the Banking sector in the KSA.
1.6 Research Methodology
Type of the study: This study is an illustrative in terms of purpose, as it links cause with effect.
Population and study sample: The study population consists of all supervisors and heads of
departments at the middle administrative levels in the KSA banks. Total of (158) valid
questionnaires were recovered for analysis. A descriptive and analytical approach was applied
to the study variables by using the applied method concurrent with the use of the scientific
methods related to the study such as Average means, Alpha’s Cronbach, Pearson Correlation,
and Regression Analysis.
1.7 Reliability of the Study
The Alpha’s Cronbach test was performed to measure the extent of internal consistency in the
items of the questionnaire. Table (1) shows the values of the internal consistency coefficient of
the paragraphs of all independent and dependent variables of the study. the dimensions for
transformational leadership is (87.8%) and (75%) for the crisis management process. For the
sub-dimensions of transformational leadership, the highest reliability coefficient was (84.5%)
for the intellectual counseling dimension and the lowest stability coefficient was (71.9) for the
sub-dimension ideal effect. The previous Cronbach alpha values indicate a high coherence and
correlation relationship between the paragraphs of the dimension scale. The statistical results
ought to be appropriate to carry on the analysis (Al-najjar etal. 2020).
Table 1: Reliability of Study Instrument - (Cronbach's Alpha) values
Cronbach's
Scale Variance Corrected Squared Alpha if
Scale Mean if if Item Item-Total Multiple Item
Item Deleted Deleted Correlation Correlation Deleted
MOTIVATION 246.1053 864.060 .836 . .849
INTELECTUAL
241.8070 842.801 .845 . .846
C..
EMPOWERME
246.4035 883.388 .810 . .853
NT
IDEAL EFECT 246.5965 878.531 .759 . .853
INDIVIDUAL C. 246.8421 856.671 .760 . .850
C1 254.6491 925.410 .705 . .861
SIGNALS 254.6491 925.410 .705 . .861
CONTAI 254.9474 931.479 .783 . .862
CONTROL 251.0000 896.250 .694 . .857
EXTRACTING 254.7719 934.822 .743 . .863
LEADERSHIP 176.0351 455.999 .878 . .903
CRISIS 218.4211 704.677 .750 . .843
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1.8 Operation Definitions
Transformational leadership: A leadership model that inspires followers to go beyond
personal benefits to achieve the organizational goals and is able to influence and motivate them
towards change and transformation to contain environmental risks and expected crises. The
definition includes: the ideal effect, intellectual counseling, individual consideration,
motivation, and empowerment. It procedurally defined as the arithmetic averages of the
respondents in paragraphs.
Crisis Management: Unexpected or sudden event that impedes the achievement of
regulatory goals threatening the bank’s presence in the banking industry. The definition
includes: Detecting and analyzing signals, rediness and control, contain damages and losses,
system reactivation, and learning. It procedurally defined as the arithmetic averages of the
respondents in paragraphs.
1.9 Research Model
A conceptual framework for the study was initiated to explore the cause and effect relationship
between the variables as shown in figure (1).
TRANSFORMATIONAL LEADERSHIP CRISES MANAGEMENT
IDEAL EFFECT
INTELECTUAL
CCOUNCELLING
CRISES
INDIVDUAL H01
CONSIEDERATION MANAGEMENT
SPIRTUAL
MOTIVATION
EMPOWERMENT
Figure 1 The framework of the study
1.10 Previous Studies
Karim's 2018 study. “Impact of strategic planning on crises management styles in five stars
hotels in Egypt”. The study examined the crisis management styles (escape, confrontation,
containment, cooperation) and the relationship of these elements to the strategic planning
process in the five-star Egyptian tourist hotels. Qualitative and quantitative approaches were
used to analyze the statistical outputs. The study found a correlation and impact relationship
between strategic planning and crisis management methods, as the relationship was positive
between strategic planning and both confrontation, cooperation and containment. The results
also confirmed that when managers practice strategic planning, it makes them strong enough to
survive and thrive .
http://iaeme.com/Home/journal/IJM 355 editor@iaeme.comThe Role of Transformational Leadership on Crises Management System in the KSA Banking
Organizations “Human Resources Management Perspectives”
Aburumman Sami (2016). The study aimed to uncover the level of transformational
leadership practice, the impact of practicing transformational leadership on crisis management
in Jordan phosphate mines company, and Arab potash company, the sample of the study
consisted of 359 workers. The results showed that practice level of the transformational
leadership components falls within the medium level, except for the ideal effect dimension
which was exercised at a high level. Also, the level of readiness for crisis management was at
a medium level. The most influential dimension of transformational leadership in preparing for
successive crisis management is the empowerment dimension, followed by individual
consideration and intellectual counseling. Meanwhile, the transformational leadership practice
explains (60.1%) from crises management dimensions.
Al-Khawlani et al., (2016). The study investigated the impact of charismatic leadership
on crisis management in Yemen, and the extent to which there was a clear view of implementing
elements of crisis management. The results of the study showed the existence of a positive
impact and relationship for charismatic leadership on crisis management as well followers, and
thus overcoming the crisis if it occurred.
A Alqatawneh (2012). “The effect of crises management system on organizational
environment in the Jordanian banks”. This study aims to identify the impact of the crisis
management system on the organizational climate of Jordanian commercial banks. The study
was included Five banks in the banking industry. A questionnaire was used for and distributed
to (203) members. The study found a set of results, including that arithmetic executing averages
of the crisis management system dimensions were high, reaching between (2.96-4.03) .
Reid, et al., (2003). The study aimed to clarify the role of the value of information in the
decision-making process in the British aromatics, in addition to the impact of an information
library in the bank on a handover process. Questionnaires were delivered to two groups of banks
(banks that do not have an electronic information library and banks have an electronic
information library). The study has reached 94% of managers in both groups believed that
information leads to Improving decisions taken in time of crises. Also, 79% of managers
confirm that the informational library provides them with a lot of critical information needed to
make decisions to confront any uncertainties in the banking system.
volio, et al, (2002). "Impact of Transformational l leadership on Follower Development and
Performance " The study aimed to investigate the impact of the transformational leadership
style on the direct follower’s development and the leaders performance of indirect followers,
by conducting the study on two groups of leaders from the US military personnel (experimental
group and control group). the experimental group trained on using the transformational
leadership style in dealing with subordinates, while the control group trained different
leadership style. The study sample consisted of (54) military commanders, (90) direct followers
and (724) indirect followers. The results revealed that transformational leadership affects the
development of employees and their performance significantly. it has been shown that the
experimental group had a strong positive effect on the performance development of both
dependent and non-dependent followers.
Meanwhile, Transformational leadership creates a strong social bond between the immediate
followers and others, this leads to an improvement in the performance of the indirect
followers.
http://iaeme.com/Home/journal/IJM 356 editor@iaeme.comMajed Radi ALzoubi
2. THEORETICAL PERSPECTIVES AND CONCEPTUAL
FRAMEWORK
2.1 Transformational Leadership
The concept of transformational leadership is essential under the different interactions in the
working environment. Leaders plan, organize, direct and control individuals to achieve their
goals and attitudes towards clear and specific organizational goals (Khan, et al., 2013).
Managing crises and how to successfully lead it has become one of the most important topics
that occupy the transformational leadership mentality in the modern era, because crises and
challenges that is taking place in the world, its speed is increasing, costly and complex, and that
the future of our organizations' success depends on how transformational leadership are able to
lead, which is one of the biggest challenges facing organizations in the era of globalization, in
order to enable them to respond appropriately to society's demands, problems and needs (Wang,
W., 2009)
Transformational leadership represents a contemporary approach that inspires leaders and
subordinates to transcend their capabilities and increase their performance to give them self-
confidence to provide the best services and goods, using effective organizational resources with
clear support for social and emotional needs (Harwati, L., 2013).
Transformational leadership plays a pivotal role in making organizational changes to
enhance access to different goals through the leader's endeavor to raise the level of his
subordinates in order to achieve self-development and work on developing employees and the
organization as a whole (Sani & Maharani, 2012).
Bass, Avolio & Jung, (2003) defined the transformational leadership theory that it is (Full-
Range leadership Theory), which indicate a full range leadership, to clarify an integrated
understanding of transformational leadership and expressed it in short (FRLT), which
distinguishes typical leaders.
This term appeared for the first time at the hands of "Burns, 1978", in his book "Leadership",
in which he explained that transformational leadership aims to distinguish between leaders who
work on Build meaningful and constructive relationships with their subordinates, and between
those who rely heavily on the Sharing of benefits in order to obtain the desired results (Burns,
1978). Burns (1978: 120) defines transformational leadership as “a process that seeks from
During which the leader and his followers to advance each other from A to reach the highest
levels.
Idealized Influence: Through this charisma characteristic, the leader is a model for others
to emulate, so that they become worthy of trust and respect. They show persistence and
determination in pursuing goals and show high levels of exemplary and ethical behavior with
their high sense of sacrificing personal gain for the benefit of others, which leads to raising the
subordinates' ethics, morale and values, to higher levels (Khan, et. al,.2013). Leaders use the
power they possess to push individuals and groups to achieve their mission and vision, and with
the passage of time, the goals of the subordinates become more meaningful to work as hard as
possible (Robbins, 2003).
Inspirational Motivation
Leaders act in accordance with this characteristic in ways that motivate and inspire those around
them by giving priority to the spirit of the group, showing full enthusiasm and optimism,
making followers focus and think of attractive and multiple future situations, they motivate
them to study very different and desirable alternatives (Givens .Rojer J. ,2008). This trait
expresses the leader's ability to express attractive and stimulate their motives and spread the
spirit of enthusiasm towards achieving goals (Goodwin et al, 2011: 411). Bulgu, M, Islam S,
(2007) indicates that subordinate motivation is a process of focusing on the behavior of a
http://iaeme.com/Home/journal/IJM 357 editor@iaeme.comThe Role of Transformational Leadership on Crises Management System in the KSA Banking
Organizations “Human Resources Management Perspectives”
transformational leader that makes subordinates love to challenge, and arouse feelings and
emotions in human resources.
Intellectual Simulation
Intellectual stimulation is the leader's ability to challenge the current situation through the
ability to search for new ideas and encourage workers to solve problems creatively, and support
new models in ways of working. Leaders work to increase awareness and encourage the
adoption of new patterns of working and addressing Old attitudes, in modern ways and
perspectives, keep pace with global developments, which generates a kind of innate confidence
in the development of workers as they are positively linked with the positions of leaders (Trmal
et al., 2015).
Individualized Consideration
Individualized consideration: This trait refers to the conduct of the leaders that show concern
and care for their followers, works to achieve the satisfaction, permanent well-being of the
subordinates and is directed to the team members. It is the leader's style in dealing with his
subordinates with kindness and showing Paying special attention to their needs, as well as
encouraging their achievement by adopting strategies’ appreciation and its’ executions (Avolio
& Bass, 1999).
Empowerment
Empowerment: This trait is a fundamental behavior of a transformational leader. The main idea
of empowerment is that the decision-making authority is delegated to the front ranks in order
to empower them to respond appropriately to the community’s requests, problems and needs.
Bass and Avolio (1994) affirms that leaders with transformative behavior have the ability
to power and inspire their subordinates, to enable them to act by providing them with a vision
for the future rather than relying on Punishment style or rewards. Leaders who have a vision
can create an atmosphere of participation and prepare enabling conditions by which employees
can execute power at work.
They provide employees with the vision which work to achieve these visions. The
transformational characteristic is characterized by its ability to create inspiring behavior that
enhances the self-efficiency of the employees to reach the set goals.
2.2 Crises Management
The science of crisis management is one of the modern management sciences that has increased
in importance in our contemporary world, and it is connected to other human sciences, such as
economics, psychology, sociology, and others, to confront all unexpected future issues and
adapting to very complex changes. Crisis management is part of the task and basic duties of
the transformational leadership.
Crisis was defined as a stressful situation that can lead to poor results (Webster, 1964). It is
a turning point in the life of the organization for the worse or for the better, It is a state of
instability (Phelps, 1986). From an economic point of view, it represents a sudden interruption
in the course of the economic system, which threatens the safety of performance. The crisis
expresses the contradictions existing between social classes and the values of exchange.
However, the crisis can be seen as a critical stage for the development of organizations.
According to pizam (2010), Hough M, Spillan J (2005) asserted that if the parties involved are
able to deal with the crisis appropriately, it is possible for organizations to move towards a
future. Better, therefore, the crisis should be seen as an opportunity rather than a threat, and this
indicates that the concerned parties are expected to be able to control this crisis. The concept of
crisis management clarifies how to use the various scientific and administrative means to
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overcome the crisis, eliminate its negatives, and benefit from its positive aspects. The scientific
concept of crisis management assures managing balances in terms of monitoring the movement
of the crisis and its directions besides adopting different environment variables to face
unexpected situations (Yukl, 2006).
Table 2 Correlations Analysis
TRANSLEADER
CRISIS SHIP
Pearson Correlation CRISIS 1.000 .706
TRANSLEADERSHIP .606 1.000
Sig. (1-tailed) CRISIS . .000
TRANSLEADERSHIP .000 .
N CRISIS 57 157
TRANSLEADERSHIP 57 157
Correlation is significant at the 0.00 level (2-tailed).
Determining the existence of a problem with the bank and finding a solution to it is an
important matter for the safety of the bank, and for achieving stability in the financial system
as well, because banks are the main financial cause, its negative effects would be significant on
the economy in general, leading to financial instability.
3. STATISTICAL MEASURES OF THE VARIABLES
Table (2) Shows the matrix of Pearson correlations between the independent variable
(transformational leadership) and the dependent variable (crises management), it revealed a
strong and positive correlations value of (0.706) between (ideal effect, intellectual counseling,
individual considerations, motivation, empowerment) and the crises management variables.
Table 3 The arithmetic mean, standard deviations, and application level.
Variables Measures Mean Standard Application Rank
Deviation Level
Independent ideal effect 3.79 0.761 high 3
Variable: intellectual counseling 4.01 0.646 high 4
(5 attributes)
Transformational individual considerations 3. 42 0.792 Moderate 1
Leadership (5 attributes)
motivation(5 attributes) 4.13 0.576 high 2
empowerment(5 attributes) 3.68 0.541 high 5
Average level 4.018 0.617 high --
Dependent Crises Management 4.29 0.821 high --
Variable (12 attributes)
3.1 The final statistical results of the transformational leadership characteristics
shown in Table (3) are the following:
• The total arithmetic mean of the research sample responses in the researched banks in
relation to the independent variable of transformational leadership was (4.01) on the
five Likert scale, which is higher than the hypothetical mean of (3) with a standard
deviation (0.61), and with High level of application, which indicates that the
administrative leaderships in the Saudi banks have the characteristics of
http://iaeme.com/Home/journal/IJM 359 editor@iaeme.comThe Role of Transformational Leadership on Crises Management System in the KSA Banking
Organizations “Human Resources Management Perspectives”
transformational leadership at a high level according to the opinions of the research
sample.
• The ideal effect attribute has achieved the highest arithmetic mean of (3.79), a standard
deviation (0.76), with a high level of importance, which indicates that the administrative
leaderships in the banking system in the KSA have good influence power and an
attractive personality that enables them to influence the subordinates to make
fundamental changes.
• The intellectual counseling feature with an arithmetic mean of (4.01), a standard
deviation (0.64), and a high level of importance, which indicates the ability of the
administrative leaderships in the banking system in the KSA to stimulate subordinates
and motivate them to make more efforts for the success of the company.
• ,The individual considerations characteristic came with an arithmetic mean (3.42), a
standard deviation (0.43), and a medium high of importance, which indicates that the
company's management is working to empower subordinates and involve them in the
administrative process at a high level.
• The motivation process characteristic came with an arithmetic mean (4.13), a standard
deviation (0.57), and a medium high level of importance, which indicates that the
company's management is working to motivate subordinates and involve them in the
administrative process at a high level.
• Finally, as for the employee empowerment dimension, it reached (3.68), a standard
deviation (0.54), and the level of medium importance, which indicates that the
transformational leadership in the banking system is working to empower the
subordinates and involve them in the administrative process at high level.
• The final statistical results of the total arithmetic means of crises Management, as shown
in Table No. (4), have shown the total arithmetic mean of the research sample responses
in the researched banks was (4.29) on the five Likert scale, which is higher than the
hypothetical mean of (3) with a standard deviation (0.82), and with High level of
application in the Saudi banking industry, this indicates that the administrative
leaderships believe in the premise of the idea of empowerment, by making decision of
delegating authorities to the middle management lines to empower them directly to
respond to any sudden problems, or undesired circumstances.
3.2 Testing the Main Hypothesis
Ho 1:- There is a significantly impact of transformational leadership at the level of (P≤ 0.05)
on crisis management 0f the Banking sector in the KSA.
It appears from Table (4) the value of R (.670a), which is a high value and indicates a large
degree of correlation between the independent variable (Transformational leadership) and
dependent variable (Crisis management), furthermore, the value of (R Square = 0.449), this
indicates clearly that the transformational leadership variables were capable to explain (44.9%)
of the crises management variables. also, the model summary reviled that the value of (f=8.312)
at a significance of (P≤ 0.05). the value of Beta (β) is (0.515) at a significance value of (P≤
0.05).
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Table 4 Model Summary
Std. Error Change Statistics
R Adjusted R of the R Square F Sig. F
R Square Square Estimate Change Change df1 df2 Change
.670a .449 .395 4.81534 .449 8.312 5 151 .000
The previous statistical output result indicated clearly that there is an effect of
transformational leadership (the ideal effect, intellectual counseling, individual considerations,
Motivation, empowerment) on Crises Management system. Accordingly, we accept the main
hypothesis which states the following: -There is a significantly impact of transformational
leadership at the level of (P≤ 0.05) on crisis management 0f the Banking sector in the KSA.
Table 5 ANOVAa
Sum of
Model Squares df Mean Square F Sig.
1 Regression 963.681 5 192.736 8.312 .035b
Residual 1182.565 151 23.188
Total 2146.246 156
a. Dependent Variable: CRISIS
b. Predictors: (Constant), EMPOWERMENT, MOTIVATION, IE, INT, INDIVIDUAL
Table 6 Summary Table of the Study Model
Variables Measures Beta T Sig
Independent ideal effect 0.038 0.141 0.037
Variable intellectual counseling 0.418 3.229 0.000
(5 attributes)
Transformational individual considerations 0.171 0.304 0.009
Leadership (5 attributes)
motivation(5 attributes) 0.269 2.328 0.001
empowerment(5 attributes) 0.214 2.046 0.004
Model Summary 0.449
(R2)
Model Summary 0.670
(R)
(F) calculated value 8.312 10.312
* Dependent Variable: Crisis Management
3.3 Discussion & Conclusion
A- It is clear from the above data of tables (4), (5), (6) that the highest effects of the
transformational leadership variables were the intellectual counseling with a (Beta) measure of
(0.418), where the value of calculated (T) is (3.229), significance at the level of (P≤ 0.00). This
result indicates clearly that any increasing for one unit in applying intellectual counseling would
lead to increase in crisis management application level for (41.8%). Accordingly, we accept the
minor hypothesis which states the following: There is a significantly impact of intellectual
counseling at the level of (P≤ 0.05) on crisis management 0f the Banking sector in the KSA.
Strategic management Get subordinates more aware, and encourage them facing Problems, to
adopt and create efficient solutions to the problems encountered their organizations, and this is
done by listening to their ideas, suggestions, sharing their feelings, putting trust in them
(Krishan, 1998).
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Organizations “Human Resources Management Perspectives”
B- The second influencing variable was spiritual motivation with (Beta) measure of (0.269),
where the value of calculated (T) is (2.328), significance at the level of (P≤ 0.00). This result
indicates clearly that any increasing for one unit in applying motivation variable would lead to
increase in crisis management application level for (26.9%). Accordingly, we accept the minor
hypothesis which states the following: There is a significantly impact of spiritual motivation at
the level of (P≤ 0.05) on crisis management 0f the Banking sector in the KSA. Business mangers
insist on motivates subordinates to study and analyses different options; good management is
about getting people to do what needs to be done efficiently (Aba-Bulgu, M, Islam S, 2007).
C- The third influencing variable was empowerment with (Beta) measure of (0.214), where
the value of calculated (T) is (2.046), significance at the level of (P≤ 0.00). This result indicates
clearly that any increasing for one unit in applying empowerment variable would lead to
increase in crisis management application level for (21.4%). It is one of the quintessential
dimensions of transformational leadership, the leader has the authority to make decisions In
order to be able to directly respond any level of crises may confront the system (Avolio,
et.al,1999). Accordingly, we accept the minor hypothesis which states the following: There is
a significantly impact of empowerment at the level of (P≤ 0.05) on crisis management 0f the
Banking sector in the KSA.
D- The fourth influencing variable was individual consideration with (Beta) measure of
(0.171), where the value of calculated (T) is (2.304), significance at the level of (P≤ 0.00). This
result indicates clearly that any increasing for one unit in applying individual consideration
variable would lead to increase in crisis management application level for (17.1%). This
element represents the leader who provides the supportive climate. The statistical results is
computable with study of Aburumman (2016), Accordingly, we accept the minor hypothesis
which states the following: There is a significantly impact of individual consideration at the
level of (P≤ 0.05) on crisis management 0f the Banking sector in the KSA. The statistical results
revealed that management listens carefully to the needs of individual subordinates, and looks
at each person and his needs separately. A leader acts as a coach and advisor when trying to
help individuals achieve their own potential.
E- The fifth influencing variable was ideal effect with (Beta) measure of (0.038), where the
value of calculated (T) is (2.141), significance at the level of (P≤ 0.00). This result indicates
clearly that any increasing for one unit in applying individual consideration variable would lead
to increase in crisis management application level for (03.8%). Accordingly, we accept the
minor hypothesis which states the following: There is a significantly impact of ideal effect
motivation at the level of (P≤ 0.05) on crisis management 0f the Banking sector in the KSA. A
leader's ability to earn trust, admiration, and respect, appreciating the followers and counting
him as the ideal, so that the followers imitate the leader and submit willingly to his instructions
(Groh M, 2014).
F-The above statistical output confirms the validity of the result of testing the previous sub
hypotheses that it came Consistent with many studies which have called for applying the
research variables to enhance the effect of transformational leadership dimension on crises
management. The results enhance the importance of applying all dimensions of
transformational leadership to identify risks and threats effectively and drawing practical
scenarios for dealing with the crisis ( Mc Connell A, L Drennan , 2006).
G-Transformational leadership’ dimensions (ideal effect, motivation, individual moral,
arousal Intellectual, empowerment) revealed a large explanation of differences in the crisis
management process.
H-The KSA banks attaches great importance to Transformational leadership dimensions to
be applied in the financial system, completable with high concern with crisis management, as
http://iaeme.com/Home/journal/IJM 362 editor@iaeme.comMajed Radi ALzoubi
the foresight variable to confront the dramatic financial changes in the world. They extrapolate
the future through continuous analysis of opportunities and threats in the external environment.
4. RECOMMENDATIONS
• Banking institutions in KSA are urged to create specialized crisis management units,
directed by qualified specialists from various administrative levels in the bank, able to
activate the overall elements that characterize successful management in confronting
crisis management.
• Providing educational courses, workshops and seminars that work to enhance of
awareness of transformational leadership concept, dimensions, and techniques.
• Working to raise the level of participation of individuals company by involving in the
administrative process and showing interest in their ideas, suggestions and opinions,
which will be reflected in banking performance.
• Presenting subordinates’ ideas regarding the future of the banking system from their
standpoint that they are closer to the practical reality, which makes them readier to
generate creative ideas at the appropriate time.
• The need to focus on empowering employees as a modern management leadership
strategy that seeks to encourage future transformational leaders and their workers to
abandon the traditional methods and systems of management in order to be able to reach
continuous improvement in the services provided which will have an impact on
achieving creative crises management str.
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