Transformational Leadership of Audit Managers and Supervisors on the Quality of Team Interactions of Independent Auditors

Document Type : Research Paper

Authors

1 Ph.D. Candidate of Accounting, Faculty of Administrative and Economic Sciences, Ferdowsi University of Mashhad, Mashhad, Iran.

2 Associate Professor of Accounting, Faculty of Administrative and Economic Sciences, Ferdowsi University of Mashhad, Mashhad, Iran.

10.22103/jak.2023.20817.3830

Abstract

Objective: The increase in global competition and the need for diverse skills and innovation in doing things are the driving forces for prioritizing teamwork in organizations. Implementing and using work teams has become one of the most common changes in today's complex and dynamic environments. In such a way, dealing with complex problems requires the collective development of creative and innovative solutions and the creation of teamwork relationships. In the auditing profession, the importance of teamwork has been demonstrated. In this connection, using transformational leadership by managers and supervisors can have many benefits, including coordination between members, reducing emotional conflict, reducing conflict regarding allocating resources and responsibilities, and increasing collective commitment. Therefore, The quality of team interactions of independent auditors (including coordination, cohesion and involvement of team members).
Method: This research is a survey-descriptive type of research. In terms of the goal, it is also considered applied research in such a way that the researcher seeks to reach information that can solve a problem by using it. In the discussion of the scope of the research, there are three types of thematic, temporal and spatial domains. The subject area of this research is the effect of transformational leadership on the quality of team interactions with independent auditors. On the other hand, this research was conducted in 2022 since it seeks to explain the influence of the leadership behaviors of managers and supervisors among all the employees of auditing institutions that are members of the Certified Public Accountants Society of Iran and their data was collected through a questionnaire and analyzed using structural equation techniques.
Findings: The results of the descriptive statistics of the research variables show that 1. Managers and supervisors almost implement transformational leadership in their institutions because, on the 5-point Likert scale, the variable of transformational, servant and moral leadership of the manager and supervisor is higher than the average of "3" (respectively, "3.442" and "3.509") so that the T statistic for all variables has a significant difference at the 95% level from the average. 2. The T statistic of team coordination and cohesion has a significant difference at the 95% level with the average of "3" (respectively, 8.25 and 7.38); therefore, there is relatively good coordination and cohesion among the members of the audit team. 3. The T-statistic of team engagement has a significant difference at the 95% level with the mean of "3" (-9.52), which indicates a relatively low engagement among audit team members. 4. Average audit team members, tenure and age of auditors are approximately 5, 5 and 34 years respectively. It should be noted that the measurement accuracy increases when the data's standard deviation is less. In this connection, according to the standard deviation obtained in table number 2, the standard deviation of all research variables is close to 1, indicating their measurement's good accuracy. Finally, in the range of 5 Likert options, the minimum and maximum limits of the respondents to all research variables were 1 and 5, respectively. Since auditors do not work separately, it is essential to know the people, tasks and environment of auditors because of their effect on their performance. As the importance of teamwork has been proven in the auditing profession, auditing firms are organizations with professional services that build their activities as a team. This is because the complex tasks involved in audit work require using different competencies and perspectives of team members. Therefore, considering the importance of teamwork, the effect of transformational leadership on the quality of team interactions was investigated in this research, the results are described below. The results of the research show that managers and supervisors who use the suggestions of team members, dedicate time to guide and train subordinates, emphasize the importance of foresight and achieve goals, and influence the emotional, psychological and behavioral states of team members, can cause coordination, reducing possible misunderstandings and improving commitment among your team members.
Conclusion: The current research was done to help institutions, managers, supervisors and legislative bodies in the auditing profession. In this regard, according to the results of the test of research models that indicated the effect of transformational leadership on the quality of team interactions, including cohesion, involvement and coordination of team members, the use of transformational leadership by managers and supervisors can bring many benefits, including coordination between members, Reducing the emotional conflict, reducing the conflict regarding the allocation of resources and responsibilities, will lead to an increase in the sense of collective commitment. Therefore, it is suggested that managers and supervisors use transformational leadership mechanisms that include: allocating time to guide and train subordinates, using the suggestions of team members, emphasizing the importance of foresight and achieving goals, and influencing the mental, emotional and behavioral states of team members be used in order to create effective communication with team members and influence their behavior. Finally, it should be noted that this research faced the following limitations.

2. There is a possibility of potential bias of managers and supervisors in connection with self-reporting.
Because part of the information was collected through cyberspace, the researcher did not directly monitor the correctness of the answers provided by the sample subjects.

Keywords

Main Subjects

References

بهرامی، محمدامین؛ مروتی، محمدعلی؛ دهقان، علی؛ منتظرالفرج، راضیه؛ احمدی، غلامرضا و شهبازی، حمزه (1394). بررسی رابطه ابعاد رهبری تحول‌آفرین و درگیری شغلی کارکنان از دیدگاه مدیران در بیمارستان‌های آموزشی شهر یزد در سال ۱۳۹۲. طلوع بهداشت، ۱۴(۶)، 565-554 https://civilica.com/doc/595555.
جعفری هرندی، رضا و نجفی، حبیبه (1396). تأثیر سبک رهبری بر عملکرد منابع انسانی با میانجی‌گری سکوت سازمانی. مطالعات مدیریت بهبود و تحول، 26(85)، 85-57 https://jmsd.atu.ac.ir/article_8220.html.
جلالی، عبدالعلی و روح‌الهی، احمدعلی (1394). تأثیر رهبری تحول‌آفرین بر عملکرد شغلی اعضای هیئت‌علمی با میانجی‌گری درگیری شغلی. خط‌مشی‌گذاری عمومی در مدیریت، 6(1)، 16-1 https://sanad.iau.ir/Journal/ijpa/Article/790962.
جوان امانی، ودود و اکبری، حمید (1400). بررسی رابطه رهبری تحول‌آفرین و عملکرد سازمانی (مورد مطالعه: شرکت گروه بهداشتی فیروز). مطالعات مدیریت و توسعه پایدار، 1(1)، 88-63 https://msds.zahedan.iau.ir/article_683800.html.
حسنی، محمد (1400). ارزیابی روابط میان ریسک عدم کشف اشتباهای ناشی از احتمال خطای حسابرسی، محیط رقابتی بازار خدمات حسابرسی و قیمت‌گذاری خدمات حسابرسی. مجله دانش حسابداری، 12 (1)، 68-45 https://jak.uk.ac.ir/article_2785.html.
رجبی فرجاد، حاجیه و فرخجسته، وحیده السادات (1400). تأثیر رهبری تحول‌آفرین بر عملکرد شغلی با نقش‌های هویت و درگیری شغلی. مشاوره شغلی و سازمانی، 13(3)، 110-91 https://jcoc.sbu.ac.ir/article_100626.html.
سعادت، نیلوفر و شاه‌طالبی حسین‌آبادی، بدری. (1399). بررسی رابطه رهبری تحول‌آفرین با عملکرد نوآورانه با نقش میانجی تاب‌آوری کارکنان دانشگاه آزاد اسلامی واحد اصفهان (خوراسگان). پژوهش‌های مدیریت آموزشی، 12(45)، 206-197 https://jearq.roudehen.iau.ir/article_1907.html.
فقه شیخی، مریم و قهرمانی، مسعود (1398). تحلیل تأثیر رهبری تحول‌آفرین بر عملکرد سازمانی با نقش میانجی فرهنگ‌سازمانی (مطالعه موردی: کارکنان بانک کشاورزی شهر ارومیه). مدیریت فرهنگی، 13(3)، 114-99 https://sanad.iau.ir/Journal/jcm/Article/817808.
محمدرضایی، فخرالدین؛ پارسایی، منا؛ فرجی، امید؛ مصلی‌نژاد، شیوا و علوی‌نسب، سید محمد (1402). تصمیم عدم پذیرش صاحبکار توسط مؤسسات حسابرسی: تأثیر وضعیت مالی صاحبکار و شهرت حسابرس و صاحبکار. مجله دانش حسابداری، 14(3)، 38-21 https://jak.uk.ac.ir/article_3505.html.
References
Alper, S., Tjosvold, D., & Law, K.S. (2000). Conflict management, efficacy, and performance in organizational teams. Personnel psychology, 53(3), 625-642 https://doi.org/10.1111/j.1744-6570.2000.tb00216.x.
Antonakis, J. (2012). Transformational and charismatic leadership. The nature of leadership, 256-288. https://serval.unil.ch/resource/serval:BIB_3576DF50B587.P001/REF.pdf.
Aw, V.K.J., & Ayoko, O.B. (2017). The impact of followers’ conflict behaviors on teams’ transformational leadership, team member exchange and engagement. International Journal of Conflict Management, 28(4), 509-532 https://doi.org/10.1108/IJCMA-04-2016-0020.
Ayoko, O.B., & Callan, V.J. (2010). Teams’ reactions to conflict and teams’ task and social outcomes: The moderating role of transformational and emotional leadership. European Management Journal, 28(3), 220-235 https://doi.org/10.1016/j.emj.2009.07.001
Ayoko, O.B., & Chua, E.L. (2014). The importance of transformational leadership behaviors in team mental model similarity, team efficacy, and intra-team conflict. Group & Organization Management, 39(5), 504-531 https://doi.org/10.1177/105960111455008.
Bahrami, M.A., Marvotti, M.A., Dehghan, A., Montazer al Faraj, R., Ahmadi, Gh., & Shahbazi, H. (2014). Examining the relationship between the dimensions of transformational leadership and the job involvement of employees from the point of view of managers in teaching hospitals in Yazd in 2013. The Dawn of Health, 14(6), 554-565 https://civilica.com/doc/595555/ [In Persian].
Baird, N., Martin, L.J., & Benson, A.J. (2020). A dynamic view of coach transformational leadership: How leadership perceptions relate to task cohesion and team potency. Psychology of Sport and Exercise, 51, https://doi.org/10.1016/j.psychsport.2020.101789.
Baird, N., Martin, L.J., & Benson, A.J. (2020). A dynamic view of coach transformational leadership: How leadership perceptions relate to task cohesion and team potency. Psychology of Sport and Exercise, 51, 101789 https://doi.org/10.1016/j.psychsport.2020.101789.
Barclay, M.J., & Smith Jr, C.W. (1995). The maturity structure of corporate debt. The Journal of Finance, 50(2), 609-631 https://doi.org/10.1111/j.1540-6261.1995.tb04797.x.
Bass, B.M., & Riggio, R.E. (2006). Transformational leadership. Psychology press. https://www.google.com/ books/edition/Transformational_Leadership/ 2WsJSw6wa6cC?hl=en&gbpv=0.
Bass, B.M. (1985). Leadership: Good, better, best. Organizational Dynamics, 13(3), 26-40 https://doi.org/10.1016/ 0090-2616(85)90028-2.
Bass, B.M. (2000). The future of leadership in learning organizations. Journal of Leadership Studies, 7(3), 18-40. https://doi.org/10.1016/0090-2616(85)90028-2.
Bass, B.M., & Riggio, R.E. (2010). The transformational model of leadership. Leading Organizations: Perspectives for a New Era, 2(1), 76-86 https://doi.org/10.1177/10717919000070030.
Bell, L.W. (2018). Generational differences and the efficacy of transformational leadership. Journal of Management & World Business Research, 14(1), https://openurl.ebsco.com/EPDB%3Agcd %3A5%3A5751013/detailv2? sid=ebsco%3Aplink%3Ascholar&id=ebsco%3Agcd%3A140950444&crl=c.
Bell, S.T., Brown, S.G., Colaneri, A., & Outland, N. (2018). Team composition and the ABCs of teamwork. American Psychologist, 73(4), 349 https://doi.org/10.1037/amp0000305.
Bloom, P.J., & Bella, J. (2005). Investment in leadership training—. Young children, 33, 32-40 https://www. researchgate.net/profile/Paula-Bloom/publication/274391950_Investment_in_Leadership_Training/links/551f 02280cf29dcabb084a1f/Investment-in-Leadership-Training.pdf
Callow, N., Smith, M.J., Hardy, L., Arthur, C.A., & Hardy, J. (2009). Measurement of transformational leadership and its relationship with team cohesion and performance level. Journal of Applied Sport Psychology, 21, 395–412 https://doi.org/10.1080/10413200903204754.
Carless, S.A., & De Paola, C. (2000). The measurement of cohesion in work teams. Small Group Research, 31(1), 71-88 https://doi.org/10.1177/104649640003100104.
Cronin, L.D., Arthur, C.A., Hardy, J., & Callow, N. (2015). Transformational leadership and task cohesion in sport: The mediating role of inside sacrifice. Journal of Sport and Exercise Psychology, 37(1), 23-36 https://journals. humankinetics. com/view/journals/jsep/37/1/article-p23.xml.
DeChurch, L.A., & Mesmer-Magnus, J.R. (2010). The cognitive underpinnings of effective teamwork: a meta-analysis. Journal of Applied Psychology, 95(1), 32 https://journals.humankinetics.com/view/journals/jsep /37/1/article-p23.xml.
Ditillo, A. (2012). Designing management control systems to foster knowledge transfer in knowledge-intensive firms: A network-based approach. European Accounting Review, 21(3), 425-450. https://doi.org/10.1037/a0017328.
Dong, S., Dong, Q., & Chen, H. (2022). Mothers' parenting stress, depression, marital conflict, and marital satisfaction: The moderating effect of fathers' empathy tendency. Journal of Affective Disorders, 299, 682-690 https://doi.org/10.1016/j.jad.2021.12.079.
Dvir, T., Eden, D., Avolio, B.J., & Shamir, B. (2002). Impact of transformational leadership on follower development and performance: A field experiment. Academy of Management Journal, 45(4), 735-744 https://doi.org/10.5465/3069307.
Elgin, D. (2002). Transformational Leadership at the Pivot of History1. Retrieved January, 15, 2009. https://duaneelgin.com/wp-content/uploads/2010/11/transformational_leadership.pdf.
Ficapal-Cusí, P., Enache-Zegheru, M., & Torrent-Sellens, J. (2021). Enhancing team performance: A multilevel model. Journal of Cleaner Production, 289, 125158. https://doi.org/10.1016/j.jclepro.2020.125158.
Fiqh Sheikhi, M., & Ghahrani, M. (2018). Analyzing the effect of transformational leadership on organizational performance with the mediating role of organizational culture (Case study: Employees of Urmia City Agricultural bank). Cultural Management, 13(3), 99-114 https://sanad.iau.ir/Journal/jcm/Article/817808 [In Persian].
García-Morales, V.J., Jiménez-Barrionuevo, M.M, & Gutiérrez-Gutiérrez, L. (2012). Transformational leadership influence on organizational performance through organizational learning and innovation. Journal of Business Research, 65(7), 1040-1050 https://doi.org/10.1016/j.jbusres.2011.03.005.
Hassani, M. (2021). Assessing the relation among audit detection risk, audit market competition environment and audit services fee. Journal of Accounting Knowledge, 12(1), 45-68 https://jak.uk.ac.ir/article_2785.html [In Persian].
Herman, H.M., & Chiu, W.C. (2014). Transformational leadership and job performance: A social identity perspective. Journal of Business Research, 67(1), 2827-2835 https://doi.org/10.1016/j.jbusres.2012.07.018.
Hoch, J.E., Bommer, W.H., Dulebohn, J.H., & Wu, D. (2018). Do ethical, authentic, and servant leadership explain variance above and beyond transformational leadership? A meta-analysis. Journal of Management, 44(2), 501-529 https://doi.org/10.1177/0149206316665461.
Hur, Y., Van Den Berg, P.T., & Wilderom, C.P. (2011). Transformational leadership as a mediator between emotional intelligence and team outcomes. The Leadership Quarterly, 22(4), 591-603 https://doi.org/10.1016/ j.leaqua.2011.05.002.
Jafari Harandi, R., & Najafi, H. (2016). The effect of leadership style on human resource performance with the mediation of organizational silence. Improvement and Transformation Management Studies, 26(85), 57-85 https://jmsd.atu.ac.ir/article_8220.html [In Persian].
Jalali, A.A., & Rooholahi, A.A. (2014). The effect of transformational leadership on the job performance of faculty members with the mediation of job conflict. Public Policy in Management, 6(1), 1-16 https://sanad.iau.ir/ Journal/ijpa/Article/790962 [In Persian].
Javan Amani, V., & Akbari, H. (2021). Investigating the relationship between transformational leadership and organizational performance (Case study: Firouz health group company). Quarterly Journal of Management and Sustainable Development Studies, 1(1), 63-88 https://msds.zahedan.iau.ir/article_683800.html [In Persian].
Jehn, K.A. (1995). A multimethod examination of the benefits and detriments of intragroup conflict. Administrative Science Quarterly, 256-282 https://www.jstor.org/stable/2393638.
Kao, S.F., Tsai, C.Y., Schinke, R., & Watson, J.C. (2019). A cross-level moderating effect of team trust on the relationship between transformational leadership and cohesion. Journal of Sports Sciences, 37(24), 2844-2852 https://doi.org/10.1080/02640414.2019.1668186.
Latané, B. (1981). The psychology of social impact. American Psychologist, 3, https://psycnet.apa.org/ record/ 1982-01296-001.
Lee, E.K., Avgar, A.C., Park, W.W., & Choi, D. (2018). The dual effects of task conflict on team creativity: Focusing on the role of team-focused transformational leadership. International Journal of Conflict Management, 30(1), 132-154 https://doi.org/10.1108/IJCMA-02-2018-0025.
Lee, I., Yu, S., & Liu, Y. (2018). Hong Kong secondary students' motivation in EFL writing: A survey study. Tesol Quarterly, 52(1), 176-187 https://www.jstor.org/stable/44984817.
Lewis, K. (2003). Measuring transactive memory systems in the field: scale development and validation. Journal of Applied Psychology, 88(4), 587 https://doi.org/10.1037/0021-9010.88.4.587
Loon, M., Mee Lim, Y., Heang Lee, T., & Lian Tam, C. (2012). Transformational leadership and job‐related learning. Management Research Review, 35(3/4), 192-205. https://doi.org/10.1108/0140917 1211210118.
Lyubykh, Z., Gulseren, D., Turner, N., Barling, J., & Seifert, M. (2022). Shared transformational leadership and safety behaviours of employees, leaders, and teams: A multilevel investigation. Journal of Occupational and Organizational Psychology, 95(2), 431-458 https://doi.org/10.1111/joop.12381.
Maister, D.H. (1982). Balancing the professional service firm. Sloan Management Review, 24(1), 15-29 https://www. academia.edu/ 36329126/Balancing_the_Professional_Service_Firm.
Marks, M.A., Mathieu, J.E, & Zaccaro, S.J. (2001). A temporally based framework and taxonomy of team processes. Academy of Management Review, 26(3), 356-376 https://doi.org/10.5465/amr.2001.4845785.
MohammadRezaei, F., Parsaei, M., Faraji, O., Mosallanejad, Sh., & Alavi Nasab, S.M. (2023). Clint firms’ rejection by auditors: The effect of client firms’ financial position and auditors’ and client firms’ reputation. Journal of Accounting Knowledge, 14(3), 21-38 https://jak.uk.ac.ir/article_3505.html [In Persian].
Mysirlaki, S., & Paraskeva, F. (2020). Emotional intelligence and transformational leadership in virtual teams: Lessons from MMOGs. Leadership & Organization Development Journal, 41(4), 551-566 https://doi.org/ 10.1108/LODJ-01-2019-0035.
Nelson, M., & Tan, H.T. (2005). Judgment and decision making research in auditing: A task, person, and interpersonal interaction perspective. Auditing: A Journal of Practice & Theory, 24(s-1), 41-71 https://doi.org/ 10.2308/aud.2005.24.s-1.41.
Ngadiman, A.E., & Ratmawati, D. (2013). Influence of transformational leadership and organization climate to the work satisfaction, organizational commitment and organizational citizenship behavior on the educational personnel of Sebelas Maret University, Surakarta. European Journal of Business and Management, 5(10), 97-114 http://erint.savap.org.pk/PDF/Vol.1(1)/ERInt.2013(1.1-03).pdf.
Perry-Smith, J.E., & Shalley, C.E. (2003). The social side of creativity: A static and dynamic social network perspective. Academy of Management Review, 28(1), 89-106 https://doi.org/10.5465/amr.2003.8925236.
Pillai, R., & Williams, E.A. (2004). Transformational leadership, self‐efficacy, group cohesiveness, commitment, and performance. Journal of Organizational Change Management. 17(2), 144-159 https://doi.org/10.1108/ 09534810410530584.
Rajabi Farjad, H., & Farrokhjeste, V. (2020). The effect of transformational leadership on job performance with identity roles and job involvement. Career and Organizational Counseling, 13(3), 91-110 https://jcoc.sbu.ac.ir/article_ 100626.html [In Persian].
Rowold, J., & Heinitz, K. (2007). Transformational and charismatic leadership: Assessing the convergent, divergent and criterion validity of the MLQ and the CKS. The Leadership Quarterly, 18(2), 121-133 https://doi.org/10.1016/j.leaqua.2007.01.003.
Saadat, N., & Shah Talebi Hossein Abadi, B. (2019). Investigating the relationship between transformational leadership and innovative performance with the mediating role of resilience among employees of Isfahan Islamic Azad University (Khorasgan). Educational Management Research, 12(45), 197-206 https://jearq.roudehen.iau.ir/article_ 1907.html [In Persian].
Schaubroeck, J., Lam, S.S., & Cha, S.E. (2007). Embracing transformational leadership: team values and the impact of leader behavior on team performance. Journal of Applied Psychology, 92(4), 1020 https://doi.org/ 10.1037/0021-9010.92.4.1020
Shah, P.P., & Jehn, K.A. (1993). Do friends perform better than acquaintances? The interaction of friendship, conflict, and task. Group decision and negotiation, 2, 149-165 https://doi.org/10.1007/BF01884769.
Smith, M.J., Arthur, C.A., Hardy, J., Callow, N., & Williams, D. (2013). Transformational leadership and task cohesion in sport: The mediating role of intrateam communication. Psychology of Sport and Exercise, 14(2), 249-257 https://doi.org/10.1016/j.psychsport.2012.10.002.
Van Knippenberg, D., Van Knippenberg, B., De Cremer, D., & Hogg, M.A. (2004). Leadership, self, and identity: A review and research agenda. The Leadership Quarterly, 15(6), 825-856 https://doi.org/10.1016/j.leaqua. 2004.09.002.
Voon, M.L., Lo, M.C., Ngui, K.S., & Ayob, N.B. (2011). The influence of leadership styles on employees’ job satisfaction in public sector organizations in Malaysia. International Journal of Business, Management and Social Sciences, 2(1), 24-32 https://www.researchgate.net/publication/215628333_The_influence_of_leadership_styles_ on_employees%27_job_satisfaction_in_public_sector_organization_in_Malaysia.
Wang, G., Oh, I.S., Courtright, S.H., & Colbert, A.E. (2011). Transformational leadership and performance across criteria and levels: A meta-analytic review of 25 years of research. Group & Organization Management, 36(2), 223-270 https://doi.org/10.1177/1059601111401017.
Wang, X. H.F., Kim, T.Y., & Lee, D.R. (2016). Cognitive diversity and team creativity: Effects of team intrinsic motivation and transformational leadership. Journal of Business Research, 69(9), 3231-3239 https://doi.org/ 10.1016/j.jbusres.2016.02.026
Whitford, A.B., Lee, S.Y., Yun, T., & Jung, C.S. (2010). Collaborative behavior and the performance of government agencies. International Public Management Journal, 13(4), 321-349 https://doi.org/10.1080/10967494.2010. 529378.
Yukelson, D. (1997). Principles of effective team building interventions in sport: A direct services approach at Penn State University. Journal of Applied Sport Psychology, 9(1), 73-96 https://doi.org/10.1080/10413209708415385.
Zaccaro, S.J., Dubrow, S., Torres, E.M., & Campbell, L.N. (2020). Multiteam systems: An integrated review and comparison of different forms. Annual Review of Organizational Psychology and Organizational Behavior, 7, 479-503 https://www.annualreviews.org/doi/abs/10.1146/annurev-orgpsych-012119-045418.
Zhang, X.A., Cao, Q., & Tjosvold, D. (2011). Linking transformational leadership and team performance: A conflict management approach. Journal of Management Studies, 48(7), 1586-1611 https://doi.org/10.1111/ j.1467-6486.2010.00974.x.
Zhu, J., Song, L.J., Zhu, L, & Johnson, R.E. (2019). Visualizing the landscape and evolution of leadership research. The Leadership Quarterly, 30(2), 215-232 https://doi.org/10.1016/j.leaqua.2018.06.003.

Files

History

  • Receive Date: 03 January 2023
  • Revise Date: 10 April 2023
  • Accept Date: 15 April 2023

Share

How to cite

Statistics