INTRODUCTION:

This chapter presents the background of the research on “To evaluate transformation leadership skills in the retail sector using Somerfield Store Ltd as a case” and the reason for why this research works conducted the aim and the objectives of the research identified by researcher . the structure of the dissertation is described at the end of the chapter

1.1 BACKGROUND OF THE RESEARCH

Retail leaders may greatly benefit from keeping an open mind when leading their organization. Among the other transformational leadership is most likely to emerge in organizations when substantial change in needed to occur, usually in response to increased competition (Howell & Avolio, 1993). Transformational leaders make changes in people’s and organization’s attitudes and moral framework usually through a positive and nurturing approach.

According to Yukl (1989), transformational leaders influence change in attitude and assumptions in order to build commitment for company and organizational goals. Therefore, transformational leadership is a shared and cooperative process among organizational members. Mangers on all levels of every type of organization can exhibit a transformational leadership style in times when considerable change is needed. Statistical evidence however indicates that mangers on lower levels of organizations have transformational leadership, more so than levels of management (Lowe et al, 1996).

Tichy and Devanna (1990) stated transformational leaders as risk-taking and action oriented. Transformational leaders motivate people by looking out for followers best interest in creating change, while at the same time; followers are moved by transformational leaders to address higher-level needs (Bass, 1985). This type of leader focuses on followers needs and motive, while helping each maximize potential (Burns, 1978).

Increased competition, economic changes, contemporary market needs are a few reasons that different leadership styles are needed (Tosi, 1982; Howell and Avolio, 1993). Organizations of all types must have a balance of leadership style in today’s business world. Qualities for today’s organizational leader must include a balance of transformational authoritarian and transformational participative systems; and task relationship orientations mixes (Schein, 1992).

Grocery and other retail organizations should know that today’s retail customers are more knowledgeable about prices, competition and shopping choices (Woodruff, 1997; Zeithaml et al., 1996), Consequently, retail managers and leaders may have more and more opportunities to invoke change as transformational leaders in order to be competitive and maintain standing.

Reichheld and Sasser (1990) give a reminder for a primary area which retail leaders should focus on-repeat customers. By focusing on maintaining a high level of customer-return, retail managers will find that they are better able to sustain overall market conditions and enhance financial results. Reichheld (2003) agrees that loyal customers are the key to growth and financial success in business. He shows that most retail business believe that providing a superior form of customer service will give them a competitive edge. The challenge of trying to maintain this type of competitive edge is that retail managers have trouble staying focused on maintaining high levels of satisfaction in their areas of retail (Reichheld, 2003)

Transformational leaders in retail should recognize the important for staying focused on maintaining customer’s needs and create a vision or roadmap of what their organizations will clearly look when the customer service roadmap is played out (Tichy and DeVanna, 1990).

Assessing leadership styles and strengths, as well as employee and organizational effectiveness may be crucial to the success of retail organization’s growth and successes. Retail transformational leaders or leaders who are proactive about evaluating their organizations may do especially measure how well company managers or employees think they are doing at talking care of customers needs. These four tools will, however, give a relatively true picture of what customers may perceive. Reichheld (2003) reported that most employees and managers do not have a true picture of what customers see. This is why these four tools may lay a more solid foundation for creating a better retail environment for customers. The four tools for measuring retail organizations success are: The ‘secret shopper, like mystery shopper, benchmarking, service quality and service level agreements. (Fraser, 1997, p. 40).

Retail transformational leaders may consider using a combination of tools to effectively meet and exceed the needs of their customers. This type of proactive analysis must be done in a supportive environment where leaders closely listen to needs of employees and customers alike. In order for such change to take place, retail leaders must proactively and consistently raise consciousness of the importance of customer service through charismatic motivation (Bass, 1985; Bryman, 1992). Transformational leaders who can do this will accomplish more than expected. Followers will be motivated to go beyond their own personal-interest for the betterment of the organization, while at the same time building a healthy and positive organizational identity (Bennis and Nanus, 1985; Bass and Avolio, 1990; Shamir et al., 1993).

Boddy (2002) emphasizes the importance of distinguishing the individual from the group. Handy (1999) indicates that the leader’s job is to be aware of the tension and to manage it by balancing the needs. Boddy (2002) emphasizes that in achieving these expectations, leaders perform such functions as defining the task, planning, briefing, controlling evaluating, motivating, organising and providing example.

Saunders, M. (2007) stresses that in an attempt to produce an original in-depth research paper, which focuses on understanding the dynamics of the issue at hand; the case study research design will be used. Davies, B. D. (2007) states that the advantage of using this research strategy and method is that the data will be collected without prior knowledge of the questions to be asked and provides an understanding from respondent’s/informant’s point of view.

The above all literature review is more or less similar with researcher works. Researcher will gain vast knowledge about these literatures and increase his breadth in depth. There have some method that will help researcher works and to reach the milestone. There have some critical information that about transformational leaders attitude, risk , action, behaviour, strength and as well as the retail management, its competition, market condition, and the tools that may be the solid foundation for creating a better retail environment for customer as well as employees.

1.2 PROBLEM STATEMENT:

This dissertation will try to find out the transformation leadership skill in the retail sector.

1.3 REASON BEHIND CHOOSE THE TOPIC:

As for researcher , he always felt that transformation leadership skill in retail sector is one of the most interesting subjects and he think to do a dissertation on the leadership skill would suitable for him to work on. He did previous semester and took a course on Research Methodologies(RM) under the supervision of Mr. Michael Neito and his motivation and encouragement had helped researcher to select this topic. Researcher have studied out many articles of transformation leadership skills and tried to sort out a topic which is going to be suitable for his dissertation according to his suggestion.

1.4 RESEARCH QUESTION:

The dissertation will try to find out the answer of the following to the research question that is based on the UK,s retail shop and evaluate transformation leadership skills and also find out real moral factors, which are encouraging in retail industry and present situation . the following four questions have been asked which were directly related to the research objectives-

1. What is transformational leadership?
2. What is transformational leader?
3. How to use transformational leader?

1.5 RESEARCH AIM AND OBJECTIVES: The main aims of the researcher proposed dissertation are to find out the transformational model that they are using in retail sectors to increase employee productivity and enhanced customer support. To analyse this aim researcher will follow the following objectives:

• To establish a case study on behalf of Summerfield store Ltd.
• To determine the transformational leadership style that are using in retail shops.
• To analysis the leaders and employee perception in concern of leadership style.

1.6 STRUCTURE OF THE DISSERTATION:

Chapter1:

in this chapter mainly in talks about introduction of my dissertation , which also includes brief introduction of my topic, my research title, research background, rationale, aims and objective of this research.

Chapter2:

the second chapter is the literature review of this dissertation concerned about the works of various authors and scholars who have highlighted and discussed about the impact on brand value in laptop computer market.

Chapter3:

this third chapter will discuss the research method used in this research paper. Research method allows the researcher to plan and design the whole research in a proper way and shows the right direction to achieve an outcome. So the chapter explains the reasons behind the use of selected research method and the advantages by using the specified research approach.

Chapter4

This chapter discuss and analysis the market information and survey for the sake of the research. It also aims to present the data those have been gathered through interviews of managers and analyse the data to provide a fruitful meaning of the research finding.

Chapter5: