This study examined the relationships between path-goal leadership styles, work group diversity, work group effectiveness, and turnover intention. It hypothesized that: 1) Work group diversity would be negatively related to effectiveness. 2) Path-goal leadership styles would be positively related to effectiveness. 3) Work group diversity would be positively related to turnover intention. 4) Path-goal styles would be negatively related to turnover intention. The study surveyed 242 employees in diverse work groups. It found support for hypotheses 2 and 3, with path-goal styles positively linked to effectiveness, and some aspects of diversity positively linked to turnover intention. However, hypotheses 1 and 4 were not supported. Overall, the variables explained modest

1. The impact of path-goal leadership styles on work group
effectiveness and turnover intention.
Globalization and the demand for a skilled, educated, and expeditious workforce pressure
organizations to leverage their diverse workforces to gain competitive advantage (Harris, 1996).
Throughout the next decade, the U.S. workforce is forecasted to become even more diverse, with 75
percent of the immigrant population arriving in the United States from Asia and Latin America, with
only five percent coming from Canada and Europe. Women and minorities were projected to
represent 70 percent of the U.S.'s 2008 workforce (Lockwood, 2005).
To maintain financial competitiveness in this diverse landscape, organizational leaders must
embrace the leadership styles that are most effective in motivating the diverse groups in which
many employees work. Diversity in work groups can generate significant benefits for organizations,
including enhanced innovation, creativity, and productivity (Valentine, 2001). Capturing these
benefits takes the right type of leadership style and skills (Jung and Sosik, 2002; Silverthorne, 2001;
Waldman et al., 2001; Kim and Organ, 1986; House, 1971; Fiedler, 1967). Despite recognition that
an appropriate leader can enhance a work group's performance, increase group members' job
satisfaction, and reduce turnover intentions, there is scant research assessing the impact of specific
leadership styles on diverse work group effectiveness and turnover intention (Duemer et al., 2004).
To help fill this gap, we analyze the relationships among three Path-Goal leadership styles, diversity,
work group effectiveness and work group members' turnover intention.
The following section discusses the important literature about diverse work groups, work group
effectiveness, turnover intention, and Path-Goal leadership styles. Then, the methods and results of
our data collection and analysis are presented. Finally, the conclusions and implications of this
study's findings for organizational leaders and the fields of leadership and management are
explained.
REVIEW OF THE LITERATURE
Work Groups and Work Group Diversity
Work groups are comprised of individuals who are interdependent and/ or interact with each other
to complete tasks and projects that contribute to organizational productivity, innovation, and
creativity. The exchange of information and know-how among work group members as they achieve
common goals generates social bonds that enhance productivity and organizations' financial
performance (Gil et al., 2005; Blanchard and Miller, 2001; Beck et al., 1999; Anakwe and Greenhaus,
1999; Nonaka and Takeuchi, 1995).
Diverse work groups exist when members' individual attributes differ (Mannix and Neale, 2005;
Hobman et al., 2004, 2003). Researchers often focus on two dimensions of group member diversity.
The first is "visible dissimilarity," which includes explicit characteristics such as age, race/ethnicity,
and gender, and the second is "value/informational dissimilarity," which includes relative
characteristics such as functional background, educational background, and seniority (Hobman et
al., 2004, 2003; Chattopadhyay, 2003; Chatman and Flynn, 2001; Williams and O'Reilly, 1998).
When individuals interact with people whom they perceive as different, they tend to classify

2. themselves and those people into social categories (Cox and Nkomo, 1990). Research has found that,
early in the life of a work group, members focus on the visible aspects of diversity such as gender,
race/ethnicity, and age. As group members interact, they redirect their attention to other members'
non-visible features such as personality, education, expertise, values, and communication styles
(Cunningham and Sagas, 2004; Hobman et al., 2004, 2003; Salomon and Schork, 2003; Richard et
al., 2002; Caudron, 1994). Employees with more perceived value/informational dissimilarity with
their leaders tend to be less satisfied with them and have weaker organizational attachment that
those with high perceived similarity (Lankau et al., 2007).
Diverse work groups present their leaders with challenges and benefits. Among the challenges are
potentially unfavorable interpersonal relationships, impeded intra-group communication, low group
cohesiveness, and high employee turnover (Joplin and Daus, 1997; Schneider, 1987; Pfeffer, 1983).
If not managed correctly, diversity can negatively affect work group members' retention,
organizational commitment, and productivity, harming the group's overall effectiveness (Chemers et
al., 1995). Thomas (1999) confirmed that homogeneous groups experienced better work
performance that heterogeneous ones.
Researchers have also identified potential benefits of diverse work (Miura and Hida, 2004; Caudron,
1994). Work group resources (including knowledge creation) reside in ali work group members and
are embedded in their social networks (Anakwe and Greenhaus, 1999; Nahapiet and Ghoshal, 1998).
Social-emotional theorists assert that the common work activities and goals shared by group
members may satisfy members' need to belong regardless of a group's diversity (Dion, 2000; Beck et
al., 1999; Caudron, 1994). When diverse group members' resources are properly channeled, groups
utilize their differences as sources of learning, growth, and adaptability, positively impacting
organizational performance (Schneider, 1987).
Work Group Effectiveness
Organizations often rely on work groups for product development, service improvement, and
operations. For work groups to be effective, group members must feel that teamwork, care, and
trust are core group values (Campbell and Swift, 2006; Gil et al., 2005; Kochan et al., 2003; Harrison
et al., 1998). Organizations with successful work group leaders who are able to promote such values
find themselves with high levels of work group effectiveness which contribute to their organization's
competitiveness (Cohen and Bailey, 1997).
Mirvis and Kanter (1991) and Foldy (2004) found that, under certain circumstances, members can
feel social reassurance in their work groups despite differences with other group members. When
leaders communicate positively about work group diversity, emphasizing the group's common work
goals, and members take constructive, introspective views about their beliefs about diversity, work
group effectiveness is enhanced, positively impacting organizational competitiveness (Thatcher et
al., 2003; Hostager and DeMeuse, 2002).
It is important for group leaders to acknowledge and celebrate diversity so that it is viewed as a
generator of innovation and creativity for the organization (Hobman et al., 2003; Chattopadhyay,
2003; Ely and Thomas, 2001; Cohen and Bailey, 1997). Diverse work group effectiveness tends to
decline when members become dissatisfied with leadership styles that do not meet their
expectations. As a result, diverse work groups need leaders who motivate members to embrace their
diversity (Sousa-Poza and Henneberger, 2004; Peterson, 2004; Kuo, 2004; Khatri et al., 2001;
Aquino et al., 1997; House and Dessler, 1974). Such leaders motivate high levels of work group
performance and foster job satisfaction (Kim and Organ, 1986). Conflict generated by work group
diversity that is not properly addressed by leaders can be a barrier to work group effectiveness and

3. may result in decreased member retention (Boyar et al., 2003; Jehn et al., 1999).
Research about diversity and work group effectiveness led to the first hypothesis:
H1. There is a statistically significant negative relationship between work group diversity and work
group effectiveness.
Path-Goal Leadership Theory
Leadership literature is replete with theories that confirm the important relationship between
positive leadership and group or organizational effectiveness. Good leaders develop sound strategies
and structures that support employees, reward their commitment, and minimize their turnover
(Sheard and Kakabadse, 2002, 2004; Waldman et al., 2001; Fiedler, 1967). They also provide visions
that empower, motivate, and encourage high levels of individual and work group performance (Ahn
et al., 2004; Ogbonna and Harris, 2000; Joplin and Daus, 1997).
Path-Goal leadership theory provides a framework that explains the success of leaders who are
flexible and able to generate high levels of work group effectiveness by increasing members'
motivation through clarification, direction, structure, and rewards (Hsu et al., 2003; Silverthorne,
2001; House and Mitchell, 1974; House, 1971). Leaders with Path-Goal leadership styles clarify and
provide direction for followers, help remove obstacles, and provide encouragement and rewards for
goal achievement. These leaders achieve results because of their influential posture, ability to work
effectively with others, and success in generating worker satisfaction (Youngjin, 2006; House and
Mitchell, 1974).
Path-Goal Leadership Theory and Work Group Effectiveness
The Path-Goal leadership theory assigns responsibility for a work group's effectiveness to its leaders
based on the premise that leaders' behaviors impact their work groups. Individuals adopting Path-
Goal leadership styles tend to be successful in enhancing work group effectiveness because these
styles enable leaders to assess needs and clarify goals in many work group situations (Ogbonna and
Harris, 2000). The flexibility of Path-Goal leadership styles may also enhance diverse work group
members' satisfaction with their working conditions, thereby raising their retention rates (Duemer et
al., 2004). Based on these findings, the second hypothesis for this study is:
H2. There is a statistically significant positive relationship between PathGoal leadership styles and
work group effectiveness.
Turnover Intention
Research has also found that employee dissatisfaction with work group experiences, including
leaders' styles and work group diversity, directly contributes to their turnover intentions (Brannon et
al., 2007; Hwang and Kuo, 2006; Samad, 2006; Loi et al., 2006; Bigliardi et al., 2005; Chen and
Silverthorne, 2005; Peterson, 2004; Abraham, 1999; Sims and Kroeck, 1994). Because work group
diversity may enhance conflict among work group members, turnover intentions among affected
work group members may rise (Brannon et al., 2007). Thus, this study's third hypothesis is:
H3. There is a statistically significant positive relationship between work group diversity and
turnover intention.
Turnover intention has been found to be highly correlated with and a precursor to resignations.

4. Resignations disrupt overall organizational effectiveness and increase expenses (Rao and Argote,
2006; Sousa-Poza and Henneberger; 2004; Taplini et al., 2003).
Porter and Steers' (1973) met-expectation theory proposed that employees' expectations are tied to
satisfaction with their work groups. Empirical studies have confirmed this theory, finding that
positive work group experiences and effectiveness can enhance employees' satisfaction and
minimize turnover intentions (Cohen and Bailey, 1997; Hom et al., 1984). Work group leaders are
charged with enhancing the effectiveness, including minimization of member turnover, of their work
groups (Chatman and Flynn, 2001; Pelled et al., 1999; Andre, 1995). When work group leaders
appreciate their members and highlight their individual value and contribution to performance, work
group cohesiveness improves, effectiveness increases, organizational commitment is enhanced, and
turnover intention declines (Brannon et al., 2007; Loi et al., 2006; Valentine, 2001). This leads to this
study's fourth hypothesis:
H4. There is a statistically significant negative relationship between PathGoal leadership styles and
turnover intention.
Review of the literature about diversity work group effectiveness, turnover intention, and Path-Goal
leadership styles reveals gaps in analysis of how these topics may be related. Thus, the final two
hypotheses for this study are:
H5. There is a statistically significant positive relationship among Path-Goal leadership styles,
diversity, and work group effectiveness.
H6. Path-Goal leadership styles, diversity and work group effectiveness significantly impact work
group members' turnover intention.
METHODOLOGY
Research Question and Hypotheses
When designing this study, the main interest was in determining the interrelationships among Path-
Goal leadership styles, diversity in work groups, work group effectiveness and work group members'
turnover intentions. Figure I shows the combination of variables in this study.
[FIGURE 1 OMITTED]
Population and Sampling Plan
Surveys were distributed to all 260, full-time, white collar and blue-collar workers at a southeastern
U.S. multinational manufacturing firm. All participants worked in one of 20 work groups in
production/manufacturing, distribution/logistics, technology, cleaning/painting, or recycling, ranging
in size from five to 25 employees. All participants completed surveys anonymously during working
hours, and the study's data was collected during a one-week period in fall 2007, yielding 242 usable
surveys (a 92% response rate).
Instrumentation and Data Analysis
The survey had four parts with 48 total questions, leveraging proven instruments developed and
tested in prior research. Part One used the Perceived Dissimilarity Scale (Hobman et al., 2004) to
measure "visible dissimilarity" (information about participants' age, gender, race, ethnicity,

5. educational level, occupational level, and job tenure) and "value/ informational dissimilarity," (data
about participants' values, work principles, and functional experience). Part Two measured
participants' perceptions of their work group leaders' styles using the Perceived Leadership
Behavior Scale (PLBS) (House and Dessler, 1974). Part Three measured participants' perceptions of
their work groups' effectiveness using Part IV (The Perceived Work Group Effectiveness Scale) of
the Defense Equal Opportunity Management Institute's Occupational Climate Survey (DEOCS). Part
Four measured employees' turnover intention, using The Turnover Intention Scale (Camman et al.,
1983).
To analyze study data, descriptive statistics, factor analyses, and multiple regression analyses were
applied. Adopted scales were retested for internal consistency and reliability.
RESULTS
Internal Consistency and Reliability of Survey Subscales
Factor analysis of all subscales yielded one-factor solutions for each of the following variables:
visible dissimilarity, value/informational dissimilarity, instrumental leadership, supportive
leadership, participative leadership, and turnover intention scales. Factor analyses revealed a two-
factor solution for the DEOCS Work Group Effectiveness Scale. Cronbach's alphas were calculated
to determine the levels of sims 3 cheat codes internal consistency and reliability for all subscales,
revealing alphas above .79 for each.
Research Findings
Analysis of the descriptive statistics of the sample showed that participants' demographics were
representative of employees working in heavy manufacturing in southeastern U.S. Demographic
information for the sample is separated into visible and value/informational dissimilarity categories
and is detailed in Table 1.
Hypothesis 1. Results of a multiple regression analysis revealed that visible dissimilarity (p = .193)
did not have a significant negative correlation with work group effectiveness and that
value/informational dissimilarity (p = .053) displayed a negative trend effect relationship with work
group effectiveness. The adjusted [R.sup.2] shows that work group diversity explained only 5% of
the variability in work group effectiveness. Results of this analysis did not confirm prior research
that found that diversity impeded work group effectiveness (Joplin and Daus, 1997; Chemers et al.,
1995; Schneider, 1987; Pfeffer, 1983). Thus, the first hypothesis was not supported.
Hypothesis 2. This hypothesis was designed to confirm the results of prior research into the
effectiveness of Path-Goal leadership styles (Hsu et al., 2003; Silverthorne, 2001; Ogbonna and
Harris, 2000; House and Mitchell, 1974; House, 1971). Multiple regression analysis revealed that ali
three Path-Goal leadership styles had statistically significant, positive relationships with work group
effectiveness, supporting the second hypothesis and confirming the findings of prior research. The
Instrumental leadership style was most strongly correlated with work group effectiveness at p =
.005, Participative leadership was correlated at p = .013, and Supportive leadership was correlated
at p = .026. Combined, the Path-Goal leadership styles explained 34% of the variability in work
group effectiveness.
Hypothesis 3. The third hypothesis was developed to confirm research that found that diverse work
groups would experience high levels of turnover intention (Joplin and Daus, 1997; Schneider, 1987;
Pfeffer, 1983). A multiple regression analysis indicated that value/informational dissimilarity had a

6. statistically significant positive correlation (p = .019) with turnover intention. Visible dissimilarity in
work groups did not demonstrate a statistically significant relationship with turnover intention (p =
.656). This supports the literature which suggests that, over time, members focus more on co-
workers' non-visible aspects of diversity. However, the adjusted [R.sup.2] for this analysis shows that
work group diversity only explained 2% of the variance in turnover intention. Given the low adjusted
[R.sup.2] of this analysis Hypothesis 3 was not supported.
Hypothesis 4. Foundational research for this hypothesis were studies by Gil et al. (2005) and Hsu et
al. (2003), which found that Path-Goal leadership styles were effective in reducing employee
turnover intention. A regression analysis revealed that both Instrumental leadership (p = .365) and
Participative leadership (p = . 127) styles were negatively correlated with turnover intention,
although not at statistically significant levels. The Supportive leadership style, however, did have a
statistically significant negative relationship with turnover intention (p = .002.) Path-Goal leadership
styles explained 22% of the variability in turnover intention. Thus, the fourth hypothesis was only
partially supported.
Hypothesis 5. Multiple regression analysis revealed positive, statistically significant relationships
between Instrumental and Participative leadership styles and work group effectiveness, confirming
earlier research (Hsu et al., 2003; Silverthorne, 2001; Ogbonna and Harris, 2000). However, neither
visible nor value/informational dissimilarity was significantly correlated with work group
effectiveness. As a group, the three Path-Goal leadership styles and diversity explained 37% of the
variability in work group effectiveness. Thus, this hypothesis is only partially supported. Table 2
contains the results of the analysis.
Hypothesis 6. Regression analysis revealed that Path-Goal leadership styles, diversity, and work
group effectiveness explained 23% of the variability of turnover intention. Value/informational
dissimilarity (p = .045) had a significant positive relationship with turnover intention, suggesting
that work group members' turnover intentions increased with increasing levels of value/
informational dissimilarity. The Supportive leadership style (p = .006) also had a statistically
significant relationship with turnover intention, showing that leaders of diverse work groups
demonstrating the Supportive leadership style lowered members' turnover intentions. It is
interesting to note that at a .10 level of significance, the Participative leadership style is significantly
correlated with turnover intention. Finally, although prior studies have found that group members'
perceptions of work group effectiveness positively impact turnover intentions (Brannon et al., 2007;
Cohen and Bailey, 1997; Kim and Organ, 1986), this analysis did not confirm this relationship (p =
.858). Thus, Hypothesis 6 is only partially supported. Details of this analysis are in Table 3.
DISCUSSION
Employees are often organized into work groups in order to increase organizational productivity and
competitiveness. Work group leaders are tasked with creating and nurturing environments that
motivate members' contribution to the achievement of common work goals. In the U.S., many work
groups are diverse, reflecting the country's demographic make-up.
This research found that Path-Goal leadership styles had statistically significant, positive
relationships with diverse work group effectiveness, with Instrumental leadership demonstrating the
strongest correlation. An interesting finding was that Supportive leadership (offering camaraderie,
friendliness, and concern for achievement and group members' well-being) was the Path-Goal
leadership style most highly correlated with reduced work group members' turnover intention. This
study confirmed some existing research about diversity and work group effectiveness and
disconfirmed other findings by demonstrating that visible dissimilarity among members does not

7. significantly impact effectiveness, and that members' dissimilarity in values, principles, and
functional experience only has a negative trend effect on effectiveness. The practical implication of
this finding is that organizations emphasizing common values and conducting appropriate diversity
training may be able to improve employee satisfaction and diverse work group performance. This
study was unable to confirm, however, the negative relationship between work group effectiveness
and turnover intention that was found in previous research.
Limitations and Research Recommendations
Because all data used in this study comes from one source using a self-report survey, it has the
potential for common method variance, limiting the generalizability of the study's findings.
Additionally, because quantitative data rather than qualitative data were gathered, the study does
not follow up with participants about their specific work situations. Finally, this study only included
Path-Goal leadership styles, excluding other types of leadership styles that may have been more
characteristic of this organization's work group leaders, which may have yielded additional insight
for leadership experts.
To mitigate these limitations, it is recommended that future research study larger groups of
employees in other industries and geographies. It is also recommended that qualitative data be
collected to be able to delve deeper into perceptions of leadership styles and work group
effectiveness as potential reasons for turnover intention. Finally, a longitudinal study is
recommended to assess work group effectiveness and turnover intention before and after work
group leaders are trained in Path-Goal leadership styles and diversity tolerance.
Conclusion
In summary, this research supports existing empirical work that studied different parts of the
equation that includes leadership style, work group effectiveness, diversity, and turnover intention.
Additionally, it fills a literature gap by combining all four variables into its analysis. Because this
study includes all variables, it sheds new light on the impact of Path-Goal leadership styles on
diverse work group effectiveness and turnover intention and provides new insight about how leaders
of diverse work groups can improve their effectiveness and encourage work group member
retention. Because both work group effectiveness and employee retention positively contribute to
bottom-line performance, organizational leaders and researchers benefit from the findings.
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Marva L. Dixon
Director; Army Community Services
U.S. Army Garrison, Vicenza
Laura Kozloski Hart
Associate Professor of International Business and
Strategy
Barry University
Table 1
Demographic Information (N = 242)
Percent Number
Visible Dissimilarity
Race

13. Asian 0.4 1
Black/African American 30.6 74
Indian/Alaskan Native 0.4 1
White 68.6 166
Ethnicity
Hispanic/Latino 2.1 5
Non Hispanic/Latino 97.9 237
Value/Informational Dissimilarity
Highest Education Level Completed
Junior High School 0.8 2
Partial High School 2.1 5
High School 42.1 102
Partial College 41.7 101
Bachelor's degree 10.7 26
Graduate/Professional Degree 2.5 6
Occupational Level
Director/Professional 5.8 14
Manager/Supervisor/Tech 23.2 56
Administrative 5.4 13
Clerical/Sales 5.4 13
Skilled Manual Employee 44.0 106
Machine Operator/Semi-Skilled 12.0 29
Unskilled 4.1 10
Table 2
Multiple Regression Analysis Results of the Impact of Path-Goal
Leadership Styles and Diversity on Work Group Effectiveness

14. Independent Variable (a) B SE [beta] t Sig
Participative Leadership .20 .08 .26 2.60 .010 *
Supportive Leadership .16 .08 .20 1.95 .053
Instrumental Leadership .15 .05 .19 2.90 .004 *
Visible Dissimilarity -.06 .05 -.08 -1.18 .241
Value/Informational -.08 .05 -.11 1.51 .133
Dissimilarity
* p .05.
R [R.sup.2] Adj [R.sup.2] Std. Error of
the Estimate
.62 (a) .38 .37 .67
(a) Predictors: (Constant), Participative leadership, Supportive
leadership, and Instrumental leadership; visible dissimilarity and
value/informational dissimilarity.
Table 3
Multiple Regression Analysis Results of the Impact of Path-Goal
Leadership Styles, Diversity, and Work Group Effectiveness on
Turnover Intention
Independent Variable (a) B SE [beta] t Sig
Participative Leadership -.33 .18 -.21 -1.84 .067
Supportive Leadership -.53 .19 -.32 -2.77 .006 *
Instrumental Leadership .12 .12 .07 0.98 .328
Visible Dissimilarity -.09 .12 -.06 -0.73 .466
Value/Informational .25 .13 .13 2.02 .045 *
Dissimilarity
Work Group Effectiveness -.03 .16 -.01 -0.18 .858

15. * p .05.
R [R.sup.2] Adj [R.sup.2] Std. Error of
the Estimate
.50 (a) .25 .23 1.58
(a) Predictors: (Constant), Participative leadership, Supportive
leadership, Instrumental leadership, visible and value/informational
dissimilarity, and work group effectiveness.
Table 4
Research Hypotheses and Results
Hypotheses Research Findings
H1: There is a statistically Supported
significant positive relationship
between Path-Goal leadership styles
and work group effectiveness.
H2: There is a statistically Not supported
significant negative relationship
between work group diversity and
work group effectiveness.
H3: There is a statistically Partially supported
significant negative relationship
between Path-Goal leadership styles
and turnover intention.
H4: There is a statistically Not supported
significant positive relationship
between work group diversity and
turnover intention.

16. H5: There is a statistically Partially supported
significant positive relationship
among Path-Goal leadership styles,
diversity, and work group
effectiveness.
H6: Path-Goal leadership styles, Partially supported
diversity, and work group
effectiveness significantly impact
work group members' turnover
intention.
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