Page 300 - The extraordinary leader

Appendix

RESEARCH METHODOLOGY

Assessing the Relationship Between Managerial
Effectiveness and Employee Commitment
(Figure 2-1)
We administered 360-degree assessments to 48,769 employees from a variety
of different organizations (public, private, government) that cut across a broad
set of business sectors. The survey contained both a 49-item leadership
effectiveness measure based on the Extraordinary Leader 16 differentiating
competencies and a five-item employee satisfaction/commitment index. The
two indexes were highly correlated. A Pearson correlation coefficient between
the two indexes was calculated at 0.51 (PC 0.000). The relationship between
the two variables indicated that 26 percent of the variance in employee com-
mitment could be accounted for by perceptions of managerial effectiveness.
Typically, the correlations are substantially higher in individual organizations.
For example, two organizations in the sample have correlations of 0.75 and
0.71 in which case the percent of variance would be 50 percent to 56 percent,
respectively. To produce the graph in Figure 2-1, individual responses from
each leader were aggregated by leader. The study included results from 7,391
leaders. The leadership effectiveness index was divided into 10 groups based
on the distribution of the data. The groups ranged in size from 781 to 609
leaders. All employees were direct reports to the leader. The graph shows the
raw mean score on the employee commitment index for each of the
10 decile groups.

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