Linking Personal Competencies with Transformational Leadership Style Evidence from the Construction Industry in Thailand

Journal of Construction in Developing Countries, Vol. 13, No. 1, 2008

Linking Personal Competencies with Transformational Leadership Style
Evidence from the Construction Industry in Thailand

*Kedsuda Limsila and Stephen O. Ogunlana


Abstract: This study explored the linkage between personal competencies and leadership behaviours as wel as their influences on leadership outcomes and
subordinates’ work performance. Personal competencies were measured using the Project Manager Competency Development (PMCD) tool. Leadership
behaviours and outcomes were measured using Multifactor Leadership Questionnaire (MLQ). Data was collected from construction projects in Thailand.
Findings revealed that leadership outcomes have significant positive relationship with all personal competencies specified in the PMCD framework, every
factor in the transformational style and contingent reward factor in the transactional style. Transformational leaders tend to produce high work quality, work
quantity, and problem solving creativity from subordinates. Findings further verified that all PMCD personal competencies have significant positive relationship
with every factor in the transformational style. It implies that project managers who apply the transformational style and/or have high personal competencies
indicated in PMCD framework are likely to generate greater leadership outcomes and work performance on construction projects.

Keywords: Project management, Leadership, Construction project, Work performance, Leadership outcomes



Effective leadership is essential for construction projects. A
INTRODUCTION
major task of the project manager is to provide effective

leadership throughout the life of a construction project
The success of a construction project depends on several
(Gharehbaghi and McManus, 2003). Normally, a project is
factors, one of which is the competencies of project
expected to be completed on time, within budget and
managers. Their personalities, characteristics, skills and
meet with technical specification or customer satisfaction
leadership styles also have much impact on project
(Morris and Hough, 1987; Tukel and Rom, 2001). However,
outcomes (Sayles and Chandler, 1971; Ashley et al., 1987;
the difficulty and uncertainty of most construction projects
Gharehbaghi and McManus, 2003; Nguyen et al., 2004).
normally create daily problems for the professionals who

manage them (Nguyen et al., 2004; Chan and Chan,

Construction Engineering and Infrastructure Management, School of Civil
2004). As such, one important job of project managers is to
Engineering, Asian Institute of Technology, Pathumthani, THAILAND.
*Corresponding Author: st101739@ait.ac.th
handle unanticipated problems competently. They should

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Kedsuda Limsila and Stephen O. Ogunlana
have essential knowledge and competencies at the
LEADERSHIP
adequate level in order to cope with different

circumstances along the project life (PMI, 2002;
The word leadership means different things to different
Gharehbaghi and McManus, 2003). In practice, some
scholars. It has been described in terms of position,
project managers may have insufficient skills and their
personality, responsibility, influence process, an instrument
personalities may not fit with the demands of the work.
to achieve a goal, behaviours, result from the interaction
They may use inappropriate leadership styles in dealing
and some other meanings from various scholars (Stogdill,
with subordinates. Effective performance and great work
1950; Rauch and Behling, 1984; Hughes et al., 1993;
outcomes from subordinates are always desirable, but they
Robbins, 1993). Most definitions have a common theme of
do not always happen. People normally respond well only
directing a group towards a goal. Therefore, the definition
to the appropriate types of leadership. The best style would
of leadership used in this study is the process (act) of
lead them to work effectively (Likhitwonnawut, 1996).
influencing the activities of an organised group in its efforts

towards goal setting and goal achievement.

This study was conducted in order to identify the

appropriate leadership style and the effective personal
Leaders’ Personal Characteristics
competencies of project managers in construction projects

in Thailand. Suitable leadership approach can shape
Efforts have been made by different scholars in order to
subordinates’ performance in a desirable way and
understand the relationship between personal
facilitate the smooth running of construction projects. In
characteristics and leadership style. In 1948, Stogdill
addition, good leadership will create subordinates’
pointed out that trait was not generally associated with
satisfaction and consequently, satisfied subordinates are
effective leadership. However, in 1974, he reached a new
likely to put much effort into their work. The link between
conclusion reversing his previous statement that although
project manager’s personal competencies and effective
personality has limited value in predicting an individual's
leadership style is the focus of this paper.
leadership potential, there are indications that traits work

with other factors in the leadership position. He observed

that leaders tend to have higher adaptability, alertness to

environment, ambition, achievement, assertiveness,

cooperation, decisiveness, dominance, energy,
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Linking Personal Competencies with Transformational Leadership Style

persistence, self confidence, independence, stress
aspiring to a leadership position. The seven virtues
tolerance, drive to exercise initiative and willingness to
from Barker and Coy's (2003) study are humility;
accept responsibility than non-leaders.
courage; integrity; humour; passion; compassion;

and wisdom.

A number of scholars had extended the researches


on personality and leadership. Their results showed some

Hautala (2006) reported that a relationship between
significant relationship between the qualities. For example,
personality and transformational leadership existed in her
Hogan et al. (1994) suggested that personality traits are
research. The indications of transformational leadership
important components of effective leadership. By using the
style from leaders' self-ratings are perceiving, extraversion
Five Factor Model of personality, the value and usefulness
and intuition while subordinates indicated that the most
of personality trait measurement as a predictor of
transformational leaders were sensing leaders. In addition,
leadership can be enhanced. They also believe that a
she referred to earlier personality studies; thus,
leader’s personalities have predictable effects on team

performance. Taggar et al. (1999) found that leadership
Bass (1985), Tichy and Devanna (1990) and Ross and
Offerman (1997) pointed out that creativity, novelty,
emerged with the association of cognitive ability, followed
innovativeness, proneness to risk, courageous,
by conscientiousness, extraversion, and emotional stability.
believing in people, value-driven, life-long learners,


pragmatism, nurturance, feminine attributes and self-

Sarros et al. (2006) summarised earlier researches on
confidence are the personality characteristics
leadership and character from several scholars in their
regarded of transformational leaders. Most of these
research. They wrote:
qualities can be connected with intuition, feeling and

perceiving preferences according to theory of the
Hesselbein (2004) commented that leadership is
MBTI (Myers Briggs Type Indicator). Church and
about how to be, not how to do, it is about
Waclawski (1998) added also that extrovert, intuitive,
character. Kirkpatrick and Locke (1991) pointed out
thinking and perceiving are more transformational
that leadership trait consists of six elements: drive;
than their counterparts. This was supported by Roush's
desire to lead; honesty and integrity; self-confidence;
(1992) study of subordinates' appraisals that feeling,
cognitive ability; and knowledge of the business.
perceiving, intuition, and extroversion preferences
Gergen (2001) suggested that character, vision, and
received the most positive transformational ratings.
political capacity are three essential traits of anyone
Intuitive and perceiving preferences were more likely
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Kedsuda Limsila and Stephen O. Ogunlana
to indicate a transformational leadership style (Van

The following discussions on personal competencies
Eron and Burke, 1992). While Roush and Atwater
are extracted from PMI (2002).
(1992) found sensing and feeling preferences were

strongly associated with transformational leadership
Personal competencies
according to subordinates' ratings.




Another group of scholars examined the relationship
As stated by Boyatzis (1982), competence means different
between leaders' personality with the Five Factors Model.
things to different people. However, it is generally
accepted as encompassing knowledge, skills, attitudes
Judge et al. (2002), and Bono and Judge (2004) revealed
that extroversion has strongest correlation with
and behaviours that are causally related to superior job
transformational leadership. The study by Judge and Bono
performance. This understanding of competence has been
described as attribute-based inference of competence
(2000) asserted that extroversion and agreeableness were
correlated with transformational leadership. In addition,
(Heywood, Gonczi et al., 1992). Alternatively, performance-
Ployhart et al. (2001) showed that openness and
based approach to competence can be inferred from
demonstrated performance at pre-defined acceptable
extroversion were predictive of maximum transformational
leadership performance.
standards in the workplace (Gonczi, Hager et al., 1993).



In this study, the personal characteristics of project

The PMI's definition of "competency" adopted from
managers were measured following the personal
Parry's (1998) work is "a cluster of related knowledge,
competencies framework in the Project Manager
attitudes, skills, and other personal characteristics that
Competency Development (PMCD) Framework
affects a major part of one's job, correlates with
developed by the PMI (2002). This standard identifies the
performance on the job, can be measured against well-
personal characteristics of effective project managers
accepted standards, can be improved via training and
regardless of the nature, type, size, or complexity of
development and can be broken down into dimensions of
projects they may be engaged in managing. This model
competencies". The major components of competencies
was adopted because PMI materials are being used in
include: abilities, attitudes, behaviour, knowledge,
many countries.
personality and skills.



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Linking Personal Competencies with Transformational Leadership Style


The PMI's definition of "personal competency"
others; team leadership and directiveness,
adopted from Finn (1993) and Crawford (1997) is "the core
assertiveness and positional power using.
personality characteristics underlying a person's capability
•
Cognitive: This competency implies that the manager
to do a project. These are behaviour, motives, traits,
has both analytical thinking capability and
attitudes, and self concepts that enable a person to
conceptual thinking ability.
successfully manage a project".
•
Personal effectiveness: This competency covers self-

control; self-confidence; flexibility and organisational

The personal competencies from PMI presented here
commitment.
are those considered to best represent the personal

characteristics required of a competent project manager
Leadership Style
in any type of project. They were derived from the

Competency Dictionary (Spencer Model) developed by
The present study uses charismatic leadership approach
Lyle and Signe Spencer (1993) and adapted to fit the
to identify leadership style of project managers. In
technical need of the PMCD framework. The six
this approach, leadership is conceptualised by the
competence units are:
behavioural areas from laissez-faire style (non-leadership),

through transactional leadership (which hinges on reward
•
system and punishments), to transformational leadership

Achievement and action: This competency consists
of achievement orientation; concern for order in
(which is based on inspiration and behavioural charisma)
quality and accuracy; initiative and information
(Bass and Avolio, 1993).
seeking.

•
Laissez-faire style

Helping and human service: This competency implies

that the manager has customer service orientation
An avoidant leader may not intervene in the work affairs of
and interpersonal understanding.
subordinates or may completely avoid responsibilities as a

Impact and influence: This competency comprises
superior, may exhibit low initiative and participation with
impact and influence capability; organisation
their subordinates and is unlikely to put in effort to build a
awareness and relationship building.
relationship with them. This leadership style is associated
•
Managerial competency: This competency includes
with dissatisfaction, unproductiveness and ineffectiveness
teamwork and cooperative; capability in developing
(Deluga, 1992).
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Kedsuda Limsila and Stephen O. Ogunlana
Transactional style

Transformational leaders achieve the greatest

performance from subordinates since they are able to
Transactional leaders focus mainly on physical and security
inspire their subordinates to raise their capabilities towards
needs of their subordinates (Bass, 1985; Bass and Avolio,
success and develop subordinates’ innovative problem-
1993). The relationship that evolves between the leader
solving skills (Bass, 1985; Yammarino and Bass, 1990). Jung
and the follower is based on bargaining exchange or
et al. (2003) found significant relationships between this
reward systems. This contingent reward leadership relates
style and innovative-supporting organisational climate.
positively to subordinates' outcomes like satisfaction and
Moreover, Shin and Zhou (2003) also reported positive
performance; however, the strength of the association is
relationship with followers’ level of creativity.
lower than transformational leadership (Lowe et al., 1996).


Leadership Factors
Transformational style


Burns (1978) described the transformational leader as one
Leadership factors used for measuring transformational,
transactional and laissez-faire leadership style in this study
who encourages subordinates to put in extra effort and to
go beyond what they (subordinates) expected before. The
are from the Multifactor Leadership Questionnaire (MLQ)
subordinates of transformational leaders feel trust, admire,
developed by Bass (1985) based on the theory of
loyal and respect towards leaders and are motivated to
transformational leadership. They are:
perform extra-role behaviours (Bass, 1985; Katz and Kahn,

1978; Bass and Avolio, 1993; Conger et al., 2000). Howell
Laissez-faire factor

and Frost (1989), Clover (1990), Deluga (1992), Kirkpatrick
•
and Locke (1996), Barling et al. (1996) asserted that

The non-leadership: Leaders in this type will
always avoid getting involved when important
transformational leadership styles affect higher task
issues
arise
and
avoid
making
decisions.
performance. While Hater and Bass (1998), Howell and
This leadership style has negative impacts on
Frost (1989) and Conger et al. (2000) claimed that
subordinates (Bass and Avolio, 2004).
transformational leadership behaviours are associated with

subordinates' satisfaction.



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Linking Personal Competencies with Transformational Leadership Style

Transactional leadership factors
specific problems become apparent. This style has a

negative effect on desired outcomes – opposite to
•
Contingent reward: This factor is based on a
what is intended by the leader-manager (Bass and
bargaining exchange system in which the leader and
Avolio, 2004). Subordinates of this leader are likely to
subordinates agree together to accomplish the
avoid initiating change and taking risk. They prefer
organisational goals and the leader will provide
maintaining the status quo (Bass, 1985).
rewards to them. Leaders must clarify the

expectations and offer recognition when goals are
Transformational leadership factors
achieved (Bass and Avolio, 2004). The rewards could

be for example; praise, pay increase, bonuses and
•
Idealised influence charisma: This factor consists of (1)
promotion.
idealised influence attributed, and (2) idealised
•
Management-by-exception (active): The leader
influence behavioural. They are the charismatic
specifies the standards for compliance, as well as
elements of transformational leadership in which
what constitutes ineffective performance, and may
leaders become role models who are admired,
punish subordinates for being out of compliance with
respected, emulated and trusted by subordinates
those standards. This style of leadership implies closely
(Avolio and Bass, 2002; Bass, 1998; Bass and Avolio,
monitoring for deviances, mistakes, and errors and
1994; Avolio et al., 1991). It also involves integrity in
then taking corrective action as quickly as possible
the form of ethical and moral conduct (Tracey and
when they occur (Bass and Avolio, 2004).
Hinkin, 1998). The leaders show great persistence and
•
Management-by-exception (passive): Managers who
determination in the pursuit of objectives, show high
behave as management-by-exception (passive)
standards of ethical, principles and moral conduct,
leaders take action only when there is evidence of
sacrifice self-gain for the gain of others, consider
something not going according to plan and the
subordinates' needs over their own needs and share
effectiveness of this style does not respond to
successes and risks with subordinates.
situations and problems systematically. Passive
•
Inspirational motivation: Leaders behave in ways that
leaders avoid specifying agreements, clarifying
motivate subordinates by providing meaning and
expectations, and providing goals and standards to
challenge to their work (Avolio and Bass, 2002). The
be achieved by subordinates, but will intervene when
spirit of the team is aroused while enthusiasm and
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Kedsuda Limsila and Stephen O. Ogunlana
optimism are displayed (Bass, 1998). The leader
Leadership Outcomes
encourages subordinates to envision attractive future

states while communicating expectations and
The outcomes from leadership quality consist of three
demonstrating a commitment to goals and a shared
measurable factors: (1) effectiveness (reflects the leader's
vision.
efficacy in achieving organisational outcomes, objectives,
•
Intellectual stimulation: Leaders stimulate their
goals and subordinates' needs in their job); (2) satisfaction
subordinates' efforts to be innovative and creative by
(reflects the degrees to which subordinates are satisfied
questioning assumptions, reframing problems, and
with their leader’s behaviour and the leader works with
approaching old situations in new ways (Avolio and
others in a satisfactory way); and (3) extra effort (reflects
Bass, 2002). No ridicule or public criticism of individual
the degrees to which the leader can increase
members' mistakes are made. The intellectually
subordinates' desire to succeed and subordinates exert
stimulating leader encourages subordinates to try
effort higher than their normal rate) (Bass and Avolio, 2004).
new approaches but emphasises rationality (Bass,

1990). Therefore, new ideas and creative solutions to
Work Performance
problems are solicited from followers, who are

included in the process of addressing problems and
The success of a project is usually stated in terms of
finding solutions.
meeting three major objectives: completion on time,
•
Individualised consideration: Leaders build a
completion within budget, completion at the desired level
considerate relationship with each individual, pay
of quality (Tukel and Rom, 2001; Xiao and Proverbs, 2003).
attention to each individual's need for achievement
Atkinson (1999) called these three criteria the "iron triangle"
and growth by acting as a coach or mentor,
or "golden triangle". While other definitions on project
developing subordinates in a supportive climate to
success have been proffered, the iron triangle is ubiquitous.
higher levels of potential (Bass, 1998; Avolio and Bass,

2002). Followers are successively developed to higher

In this study, the performance levels of subordinates
levels of potential. New learning opportunities are
were measured in the direction which would support the
created along with a supportive climate in which to
success of construction projects as described earlier. Thus,
grow. Individual differences in terms of needs and
they were measured from (1) work quantity (actual work
desires are recognised.
compared with the planned schedule), (2) work quality (fit
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Linking Personal Competencies with Transformational Leadership Style

with the desired level of project owner or technical

In construction projects in Thailand, normally
requirement). In addition, working in the construction
people designated as project engineers and project
projects, people have to coordinate and work together as
architects receive direct instructions from the project
a team, hence, teamwork and work discipline are the
manager while at the same time supervising site engineers
important qualities they should occupy (Sanvido et al.,
and site architects. Thus, there is direct contacts and
1992; Nguyen et al., 2004). Besides, construction work by
relationships between project engineers and project
nature is a daily operation where unpredictable problems
managers. Therefore, project engineers and/or project
occur regularly, creativity in problem solving is an essential
architects, as direct subordinates of the project manager
quality that the project staffs should posses (Nguyen et al.,
were chosen as the respondents to provide data on the
2004; Nitithamyong and Tan, 2007). Thus, the additional
leadership behaviours, leadership outcomes and personal
performance aspects need to be measured from
competencies of project managers. On the other hand,
subordinates including (3) team work level, (4) creativity in
project managers provided data on the work performance
problem solving and (5) work discipline. Together, the five
of their direct subordinates.
aspects are used as measures of work performance.



Most construction projects in Thailand have only one

or two project engineer working full time on sites. Some
METHODS
projects have one project architect, whereas others have

none. In addition, we attempted to avoid the bias of a
The focus of the research is on the leader's personal
single subordinate reporting on the manager. Therefore,
competencies, leadership styles and their effects on
the target respondents of this study are two subordinates
subordinates' work performance. Data on leadership
(project engineers or/and project architect) and one
behaviours, leadership outcomes (effectiveness, satis-
project manager per one project. Thus, it was necessary
faction, extra effort) and personal competencies of project
that a construction project qualified to be selected for
managers in Thai construction projects were gathered from
data col ection should have at least two subordinates
the subordinate group whereas project managers
(project engineers or/and project architects) working
provided data on their subordinates' work performance
under a single project manager. This reduces the potential
level based on their (project managers') judgment.

bias from rating by a single subordinate.


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Kedsuda Limsila and Stephen O. Ogunlana

The top construction companies in Thailand were
the average tenure their current organisations was 5.5
identified from various sources (mainly the contractors
years.
registered with the Thai Contractors Association and The

Engineering Institute of Thailand) and they were requested

Data for leader group was collected from 52 project
to send a list of their ongoing projects for the purpose of
managers (all male with engineering background). The
data col ection. A full set of questionnaires (one for the
average age was 39 years. Among them, 47 respondents
project manager and two for subordinates) were then sent
had bachelor degrees while 4 had master degrees and 1
to each qualified project with the covering letter
had a doctorate degree. The average work experience
explaining the objectives of the study and assuring
was 16 years and the average tenure with their current
respondents of confidentiality and urging them to
organisations was 12.5 years. Thirty of the 52 project
participate in the study. Pre-addressed reply envelope was
managers have had leadership training. The entire data
included for postage.
were col ected from 52 construction projects in Thailand

(21 public owners and 31 private owners). The 52 projects
The Samples
comprised 33 building construction projects and 12 civil

engineering projects, whereas 5 projects combined
There is no updated list of ongoing construction projects in
building and civil construction, 1 was a telecommunication
Thailand. Thus, it is not possible to have an exact sampling
project and another a mining project.
frame of construction projects and/or construction project

managers in Thailand for use in random sampling.
Research Instrument
Therefore, non-probability sampling incorporating snowball

technique was adopted in selecting qualified projects and
A questionnaire survey was adopted for collecting data
respondents.
because of its advantage in yielding responses in standard

format from a large number of respondents and the
Data for the subordinate group was collected from 92
benefit of collecting data from respondents from
engineers and 12 architects (100 male and 4 female),
geographically dispersed locations.
whose average age is 32 years. Among them, 98

respondents had bachelor degrees while 6 had master

degrees. The average work experience was 9 years and

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