Quantitative correlation of leadership styles and job stress in a Midwest United States auto company

Leaders in North American auto companies face significant pressure to cut costs because of shrinking market share. Short and long-term healthcare costs are a leading contributor to rising legacy and on-going operating costs. Stress-related issues are a major factor contributing to on-going healthcare needs among the working population. This quantitative correlational research study examined the relationship between workers' perceptions of IT leaders' leadership styles and job stress. A convenience sample of 94 IT workers from one of seven departments from a target population of 1,500 IT workers in a Midwest auto company received a survey. The goal was to obtain the workers' perceptions of the leadership styles used by his or her leaders and the workers' job stress levels to determine if an association exists between these two variables. The results indicated that perceived leadership styles correlate with job stress for IT workers in a Midwest United States auto company. The results of the study indicated that transformational leadership styles reduced stress levels for all participants, and passive/avoidant leadership styles increased stress levels for all participants. Perceived transformational leadership styles within the study groups were lower than national norms and perceived passive/avoidant leadership styles were higher than national norms. This could result in increased job stress levels for IT workers in the Midwest auto company. Previous research indicated stress in the workplace has contributed to rising healthcare costs. Lowering distress levels improves the health of workers, resulting in healthcare cost savings for companies. Leaders must be aware of the possible relationship between job stress levels and increased healthcare costs.