ArticlePDF Available

THE INTERNATIONAL JOURNAL OF BUSINESS & MANAGEMENT The Impact of Leadership Styles (Transformational and Transactional Leadership) on Employees Job Satisfaction in the Banking Sector of District Kotli, Pakistan

Authors:
The International Journal Of Business & Management
(ISSN
2321
8916)
www.theijbm.com
122
Vol 5
Issue
8
August
, 2017
THE INTERNATIONAL JOURNAL OF
BUSINESS & MANAGEMENT
The Impact of Leadership Styles (Transformational and
Transactional Leadership) on Employees Job Satisfaction
in the Banking Sector of District Kotli, Pakistan
1. Introduction
Leaders are the essential part of every organization and their importance cannot be denied. Effective leadership plays a very essential
role in motivating and satisfying employees with their jobs for achieving organizational goals efficiently and effectively. Mintzberg
(2010) stated that leadership is a symbol of trust which comes from the respect of others. However, leaders are important tool of the
organization which enhance the production and profitability and bring innovation in the organization, but the success of organization
depends upon the leadership style and the supportive culture of the organization which created for employees to perform well in order
to cope with this competitive environment.
Leaders and their leadership styles play a very important role in achieving organizational goals and objectives successfully (Voon, Lo,
Ngui, and Ayob, 2011). Research have been conducted about the leadership styles all over the world which explains different
leadership styles such as autocratic, bureaucratic, laissez-faire, charismatic, democratic, participative, situational, transactional, and
transformational leadership but transactional and transformational leadership styles are the most important and related with
employee’s job satisfaction. Transformational leadership states that the relationship among manager and employees is based on
common trust and illustrates the factors like charisma, intellectual stimulation, inspiration, and individual consideration whereas
transactional leadership states the relationship among manager and employees on agreement. Javaid & Farooqi (2013) argued that
transformational leadership is the influencing process which influence the attitude and behaviors of employees and inspire them for
the well-being of organization and also for their self-interest and build commitment towards organizational goals and objectives.
Literature on previous studies argued that transformational leadership style has a significant and positive relationship with employee’s
job satisfaction than transactional leadership style (Javed et al., 2014). This study focused on transformational and transactional
leadership styles and their impact on employee’s job satisfaction.
This research used banking sector because in Pakistan this sector has been increased day by day. In this sector, many educated
population is working so job satisfaction is very important for them.This study focused on the banking employees of district Kotli
only. The banking sector of Pakistan as well as Azad Kashmir is expanded gradually and due to this expansion competition is also
increased. So, employee’s job satisfaction is important for maintaining their position in this growing sector. Many factors affect the
Muhammad Adeel
Student, University of Azad Jammu and Kashmir, Muzaffarabad, Pakistan
Uzma Hashmi
Student, University of Azad Jammu and Kashmir, Muzaffarabad, Pakistan
Zafar Iqbal
Lecturer, University of Management Sciences and Information Technology, Kotli, Pakistan
Abstract:
The aim of this research project was to examine the impact of leadership styles (transformational and transactional
leadership) on employee’s job satisfaction in the banking sector of District Kotli (A.K). A five point Likert scale
questionnaire consisting of 20 items divided into four parts (Demographics, Transactional Leadership, Transformational
Leadership and Employees Job Satisfaction) adapted from previous studies was used. Different banks of District Kotli were
selected on the basis of simple random sampling. A total 100 questionnaire were distributed, out of which 88 were returned
back and showing the 88% response rate. Data was analyzed by applying the Pearson correlation and regression analysis
with the help of SPSS. The results of this research indicate that transformational and transactional leadership styles have a
positive and significant relationship with employee’s job satisfaction. But transactional leadership style is less significant
than transformational leadership style. Results also reveal that due to changing trends and emerging economy leaders
change their leadership styles according to the situation. They mostly try to adopt the charismatic leadership style for
inspiring and motivating their employees for achieving organizational goals and objectives effectively and efficiently.
Keywords: Leader, leadership, leadership styles, transformational leadership, transactional leadership, employees job
satisfaction
The International Journal Of Business & Management
(ISSN
2321
8916)
www.theijbm.com
123
Vol 5
Issue
8
August
, 2017
employee’s job satisfaction in the banking sector but the most important factor is its leaders who influence employee’s behavior in the
organization.
1.1. Problem Statement
Previous studies have been conducted on developed countries regarding transformational and transactional leadership styles and their
impact on employee’s job satisfaction but limited research has been conducted in developing countries like Pakistan. This raises the
problem of which leadership style is best suited and which leadership practices should be adopted in different branches of banksin
order to achieve organizational goals and objectives and how to ensure employees job satisfaction. Job satisfaction of banking
employees in Kotli (A.K) has been observed as an ultimate outcome of leadership styles. Hence, the purpose of this study is to identify
the impact of transformational and transactional leadership styles on employee’s job satisfaction in commercial banks of district Kotli
(A.K).
1.2. Research Objectives
The objective of this research was to analyze the impact of leadership styles (transformational and transactional leadership) on
employee’s job satisfaction with a meticulous reference to the group of study. The other objectives include:
1) To determine the impact of transactional leadership style on employee’s job satisfaction.
2) To analyze the impact of transformational leadership style on employee’s job satisfaction.
3) To examine the relationship between transactional, transformational leadership styles and employee’s job satisfaction.
1.3. Research Questions
This research illustrated the following questions:
1) Does transactional leadership style have a significant relationship with employee’s job satisfaction?
2) Does transformational leadership style have a significant relationship with employee’s job satisfaction?
3) What is the relationship between leadership styles and employee’s job satisfaction?
1.4. Significance of the Study
The outcome of this research will serve as a basis of policy guidance to the study organization as banking sector in district Kotli and
also provide essential encouragement for increasing employee’s job satisfaction. This study will help the organizations to have
effective leaders for motivating employees. The research will also guide the employees to identify their roles and responsibilities in
the organization from leadership.
In today's competitive environment this research will build the capacity of both management and employees to increase the
performance of employees by satisfying and motivating them. At the end, this study will contribute significantly to guide the future
researchers on leadership style and employees job satisfaction.
1.5. Limitations of the Study
There are some limitations in this research which must be discussed. The participants of this study were the banking employees of
district Kotli only. Hence its scope is limited to district Kotli. This research covers the 100 employees only to get the results. Due to
time constraints sample size was very small for conducting the research and going through the available literature. This study was
cross-sectional because data was gathered for one time.
2. Literature Review
2.1. Leadership
According to (Belonio, 2012) leadership is an influence relationship of leaders and followers to achieve the organizational goals.
Leadership means to use the leading strategy for motivating, inspiring and directing others to enhance their potential for
accomplishment of corporate objectives, growth and development. Leaders determine organizations culture, norms and values,
standards, employee motivation, issues and change arise in the working environment and affects employees’ behavior, emotions and
performance (Belias & Koustelios, 2014).
In today's competitive world, success and failure of organization depends upon the effectiveness of leadership. As leaders play a vital
role in boosting employee's job performance by engaging them with their jobs (Kehinde & Banjo, 2014). Therefore, researchers have
different opinion about the effectiveness of leader's role in order to cope with the uncertain business environment, but many
researchers agree that leader and their leadership styles play a vital role in organizational success and failure (Rasool et al., 2015).
2.2. Leadership Theories
There are many theories which were developed about the leadership which argued that the leadership styles vary from person to
person and depend on situation (Rasool et al., 2015). In beginning` it was believed that leaders are born (Great Man theory, 1840s),
but according to trait theory (1930s-1940s) it was believed that leaders are born or have been made with certain qualities, then some
researchers presented behavioral theory (1940s-1950s) in reaction to trait theory, leaders have some behavior rather than traits. Then
researchers presented contingency theory (1960s) which argued that leaders have neither single trait nor behavior which they use in
certain critical situation. However, over the years new leadership theories of transactional and transformational have evolved among
The International Journal Of Business & Management
(ISSN
2321
8916)
www.theijbm.com
124
Vol 5
Issue
8
August
, 2017
management researchers (Rasool et al., 2015). Different theories explain leadership styles in many different ways, such as Great Man
theory, Trait theory, Contingency theory and behavioral theories are called traditional theories. On the other hand, transactional and
transformational theories are called new theories of leadership.
2.3. Leadership Styles
Voon et al. (2011) stated that leaders adopt different leadership styles for managing organizations. Research on leadership revealed
that in every organization, cultures and working frames leaders adopt different leadership styles according to the situation they face.
Due to the technological changes, several changes are happening in banking sector in terms of structure and organization (Belias &
Koustelios, 2014). There are many different styles of leadership adopted by leaders but below two are most effective and commonly
used nowadays (Bushra et al., 2011).
2.3.1. Transactional Leadership Style
This style is based on traditional, bureaucratic power and legitimacy. According to Ojkuko & Odetayo (2012) in transactional
leadership style both management and employees get benefits, management in the form of achievement of targets and employees in
the form of rewards. In transactional leadership style leaders focus on achievements and completion of work and clarify the
subordinates what they want from them and what they will receive in return (Kehinde & Banjo, 2014).
2.3.2. Transformational Leadership Style
Burns (1978), presented the transformational leadership style. He argued that transformational leader is one who encourages the
employees to boost up their perception, motivation, beliefs, morals and alliance with the organizations objectives. According to Bass
(1998), transformational leaders are responsible for motivating employees to accept challenging goal through enthusiasm and
optimism. Transformational leaders are very innovative, energetic and passionate. They internally motivate their employees by
influencing their views, opinions, behaviors and attitudes (Rasool et al., 2015).
2.4. Job Satisfaction
Hoppock (1935), explained job satisfaction in his book as a theoretical construct. Job satisfaction is defined as the one's feeling or
state of mind according to the nature of their work. A variety of factors affect the job satisfaction such as relationship of employees
with their supervisors, proper working conditions and the quality of fulfillment of their task (Paracha et al., 2012). Rasool et al. (2015)
stated that satisfied and committed employees always have higher job performance. Thus, organization needs to enhance the job
performance of its employees for the betterment of the organization by motivating and creating a sense of commitment. However,
Belonio (2012), argued that employees require the proper working conditions which encourage them to show the right attitude or
behavior to their job.
2.5. Relationship between Leadership Styles and Employee's Job Satisfaction
Research on leadership styles and employees job satisfaction has examined that employee’s job satisfaction and leadership styles have
a strong positive relationship (Bayram & Dinc, 2015). Previous studies argued that organizations success depends on performance of
satisfied employees, and employee’s satisfaction is related to the leadership styles. Leadership style is the important key factor which
determines the employee’s job satisfaction. Characteristics of employees and leaders measure the reaction of employees towards their
leaders (Hamidifar, 2010).Organizational internal environment such as culture, leadership styles and personal relationship influenced
the employee’s job satisfaction. Employees are highly satisfied with innovative and supportive leaders rather than critical and
autocratic leaders. Job satisfaction increased when leadership style adopted by manager is according to the expectations of their
workers and leader become closer to their employees. The leadership style which affect the job satisfaction should be supportive,
participative, achievement oriented and instrumental (Baltaci, Kara, Tascan, and Avsalli, 2012).According to Belias & Koustelios
(2014) leadership and employees job satisfaction has an interactive relationship. Leaders create such an environment which is
supportive for employees to motivate them for their jobs. Research on leadership styles and employees job satisfaction revealed that
two main types of leadership which influence job satisfaction of employees in the organization are transformational leadership and
transactional leadership. The transformational leader is one who brings innovation and creation in the organization according to their
own vision. While transactional leaders act within the existing culture (Turey, 2013).
2.6. Conceptual Framework
The International Journal Of Business & Management
(ISSN
2321
8916)
www.theijbm.com
125
Vol 5
Issue
8
August
, 2017
Figure 1
Leadership constructs adapted from (Darvish & Pour, 2013; Timothy et al., 2011) and Job Satisfaction construct adapted from (Arzi &
Farahbod, 2014; Long et al., 2014) was used in this research. In this challenging environment job satisfaction is influenced by
different leadership styles which have different effects. For organizational success creativity and innovation are the basic
requirements, where transactional leadership style is less effective than transformational leadership style (Rasool et al., 2015). On the
basis of previous research it is stated that leadership styles (transformational leadership style and transactional leadership style) has a
positive and significant relationship with employee’s job satisfaction.
2.7. Hypothesis Statement
H1: Transformational leadership style enhances employee’s job satisfaction.
H2: Transactional leadership style enhances employee’s job satisfaction.
H3: Leadership styles have a positive and significant relationship with employee’s job satisfaction.
3. Methodology
3.1. Research Design
The aim of this study was to identify the impact of leadership styles on employee’s job satisfaction working in the banking sector of
district Kotli. However, the contribution of other factors is to enhancing the satisfaction of employees. In order to determine the
relationship and recognize the impact of leadership styles on employees job satisfaction some statistical tools and techniques was used
on data such as, Pearson correlation and regression analysis with the help of SPSS (Statistical Package for Social Sciences).
3.2. Type of the Study
This research was based on the positivistic approach derived from the ontological research philosophy. Ontology describes the choice
of research approach, hence keeping in view the research questions and objectives i.e. generalization (Saunders et al., 2009). Further
the research approach was explanatory that entails to explain causal relationship of variables (Rizal et al., 2014). Quantitative research
approach was used in this research because it is the numerical representation that focuses on measuring positivist and objectivist of
social reality (Wood and Welch, 2010).
3.3. Type of the Data
Primary and secondary data was used in this study. Primary source of data was simple random sampling method by structured
research questionnaire and secondary data was through different articles, theories and research papers.
3.4. Population and Sample
Sampling criteria for this research was a simple random sampling because in this type of sampling there is an equal chance of
selecting each unit from the total population being studied when choosing sample (Saunders et al., 2009). Respondents for
theresearch was chosen randomly. The respondents were the employees of the banking sector of district Kotli. The purpose of
choosing banking sector was that, this field is rapidly growing in Pakistan as well as in Azad Kashmir (A.K) and there is a regular
interaction among employees and manager (leaders) and it has a direct impact on satisfaction of employees. However, due to the rapid
change in banking sector managers often face problem in leadership styles and research in this field will provide fresh thoughts and
insights about leadership styles and its impact on employee’s job satisfaction.
The total population was 500 employees from different banks of district Kotli and a sample of 100 banking employees working in
district Kotli was taken through simple random sampling. Out of which 88 questionnaires were returns back showing the 88%
response rate.
3.5. Unit of Analysis
The unit of analysis and the unit of observation were the individuals of banking sector of district Kotli (A.K). This research used the
cross-sectional quantitative research design.
The International Journal Of Business & Management
(ISSN
2321
8916)
www.theijbm.com
126
Vol 5
Issue
8
August
, 2017
3.6. Data Collection Methods
The principle data collection method was structured questionnaire chosen to determine the satisfaction of employees. It is argued that
structured questionnaire is an effective way of data collection and variables are measured efficiently through questionnaire (Rasool et
al., 2015). Through this method lot of time and cost can be saved. In this research, structured questionnaire was administered
personally to the employees for gathering the relevant data.
3.7. Measurement of Variables
The transformational and transactional leadership styles was measured through Multifactor Leadership Questionnaire (MLQ) which
was adapted from (Timothy at el., 2011) and job satisfaction was measured through Minnesota Satisfaction Questionnaire (MSQ)
which was adapted from (Arzi and Farahbod, 2014; Bayram and Dinc, 2014 and Turey, 2013). The questionnaire was consisted of 20
questions of which 7 questions based on transformational leadership style, 7 questions was on transactional leadership styles and the
remaining 6 questions was on employee’s job satisfaction. The items which were used to measure the constructs were adapted from
previous research but modified according to the context of the study. Each construct was measured by using a five-point Likert scale
ranging from 1 (Strongly disagree) to 5 (Strongly agree).
3.8. Reliability of Scales used in Questionnaire
Cronbach Alpha was used to check the reliability of variables used in questionnaire. Following table shows the reliability of scales
through Cronbach Alpha
S. No
Scale
Cronbach
Alpha
No. of Items
1
Transformatio
nal Leadership Style (TFL)
0.876
07
2
Transactional Leadership Style (TSL)
0.879
07
3
Job Satisfaction (JS)
0.878
06
Overall
0.887
20
Table 1: Reliability of Scales (Cronbach Alpha)
The value of Cronbach Alpha should be greater than 0.7. The Cronbach Alpha value of all the scales are greater than 0.7, so all of the
above scales are reliable.
3.9. Analysis Technique
The data was analyzed by using SPSS-20 software. In order to find out the results, different statistical techniques used. Pearson
correlation was used to find out the relationship between different variables along with the descriptive statistics. Multiple regression
analysis also used for identifying the impact of independent variables on dependent variables.
4. Data Analysis Results and Discussions
4.1. Demographics of the Respondents
This part includes frequency distribution of demographic characteristics of the respondents. This section shows the percentage of male
and female, percentage of educational level of respondents and percentage of ages of respondents. This section also includes mean
values of gender, education level and ages of the respondents and also depicts the standard deviation of gender, education level and
ages of the respondents.
S. No
Demographics
Nomenclature
Frequency
Percentage
Mean
Standard
Deviation
01
Age
20
-
25 years
14
15.9
2.3182
0.97728
02
26
-
30 years
46
52.3
03
31
-
35 years
18
20.5
04
36
-
40 years
06
6.8
05
41
-
45 years
04
4.5
Total
88
100
01
Educational
Background
Intermediate
04
4.5
2.523
0.67768
02
Graduates
39
44.3
03
Post Graduates
40
45.5
04
MS/M. Phil
05
5.7
Total
88
100
01
Gender
Male
66
75
1.25
0.43549
02
Female
22
25
Total
88
100
Table 2: Demographics of Respondents
The International Journal Of Business & Management
(ISSN
2321
8916)
www.theijbm.com
127
Vol 5
Issue
8
August
, 2017
Table 2 shows that 15.9% of the respondents were 20-25 years, 52.3% of the respondents were 26-30 years, 20.5% were 31-35 years,
6.8% of the respondents were 36-40 years and 4.5% were 41-50 years. The mean of the age was 2.3182 which show that the majority
of the respondents were younger. The standard deviation of the age was 0.97728.
The educational background of the respondents shows that 4.5% respondents were intermediate, 44.3% were graduated, 45.5% were
post graduate and 5.7% were MS/M. Phil. The mean of the educational level was 2.523 which indicates that majority of the
respondents were post graduate. The standard deviation of the education level was 0.67768.
The survey respondents consist of 75% male and 25% female. The mean of the gender was 1.25 which shows that the majority of the
respondents were male. The standard deviation of the gender was 0.43549.
4.2.Mean, Standard Deviation and Pearson Correlation
Pearson correlation analysis was used to find out the relationship between dependent and independent variables. The dependent
variable in this research was employees job satisfaction (JS) and independent variables were transformational leadership style (TFL)
and transactional leadership style (TSL).
Table 3: Mean, Standard deviations and Correlation
To find out the relationship among variables Pearson correlation analysis was used. The correlation values of demographic section
were negative which shows that they have no relationship with leadership styles and employees job satisfaction and have no direct
impact on it. The Pearson correlation value of transformational leadership style and employees job satisfaction (r = 0.685, p = 0.000),
this indicates that there is a positive correlation between transformational leadership style and job satisfaction of employees. On the
other hand, the correlation value of transactional leadership style and employees job satisfaction (r = 0.482p = 0.000), which also
illustrates a positive relationship between transactional leadership and job satisfaction of employees.
The mean value of employee’s job satisfaction is 4.0549 which describe the overall employee’s job satisfaction. The results show that
employees are satisfied with their job. The mean value of transformational leadership style is 4.1899 which describe the employee’s
views about charismatic and supportive leadership style of the manager. Findings indicate that employees are more satisfied and
happy with their supervisor. Employee’s responses show that managers encourage their employees communicate personally and
involve them in decision making. The mean value of transactional leadership style is 3.9205 which show that employees are satisfied
with their leader but slightly less than transformational leader. These results are slightly consistent with the results of previous studies
and variations in findings are due to the other factors such as cultural, awareness of manager about the new leadership styles and other
factors related to job satisfaction and leadership styles (Awamleh, 2004; Belonio, 2012; Belias and Koustelios, 2014; Bushra et al.,
2011; Chaudhry & Javed, 2012; Darvish & Pour, 2013).
Where:
*. Correlation is significant at the 0.05 level (2-tailed).
**. Correlation is significant at the 0.001 level (2-tailed).
N= 100
The International Journal Of Business & Management
(ISSN
2321
8916)
www.theijbm.com
128
Vol 5
Issue
8
August
, 2017
4.3. Regression Analysis
Regression Coefficient (β)
R
2
Δ
R
Transformational Leadership
Style (TFL)
0.623
**
0.476
0.46
Transactional Leadership Style
(TSL)
0.102
Table 4
Table 3 shows the regression analysis results of transformational leadership style (β = 0.623, p<0.05). Hence, there is positive and
significant relationship between transformational leadership style and employees job satisfaction. The value of β depicts that
transformational leadership style will bring 62% change in employee’s job satisfaction towards positive direction. The transactional
leadership style (β = 0.102, p > 0.05). The value of β depicts that transactional leadership style will bring 10% change in employees’
job satisfaction in positive direction and less significant as compared to transformational leadership style. These statistical findings are
consistent with the studies of (Bushra et al., 2011; Darvish & Pour, 2013; Emery et al., 2007; Fernandes and Awamleh, 2004;
Hanaysha et al., 2012)
The hypothesis 1 states that transformational leadership style enhances the job satisfaction of employees. On the basis of statistical
findings, it has been concluded that transformational leadership style has significantly positive effect on employees’ job satisfaction.
Findings support the hypothesis and prove that through transformational leadership style leaders can satisfied their staff. Therefore, on
the basis of findings H1 is supported.
The hypothesis 2 states that transactional leadership style enhances the employee’s job satisfaction. The results of study suggest that
transactional leadership style has a positive and significant relationship with employee’s job satisfaction but less significant than
transformational leadership style. Therefore, on the basis of findings H2 is also supported.
5. Conclusion and Discussion
The purpose of this research project was to analyze the impact of leadership styles (transformational and transactional) on employee’s
job satisfaction in the banking sector of District Kotli. Primary data was collected through questionnaire adapted from previous
studies. Pearson correlation and regression analysis were applied to test the data and hypothesis. This study finds that there is a
positive and significant relationship between transformational and transactional leadership styles and job satisfaction of employees
however, transactional leadership style is less significant than transformational leadership style. Since, different leadership styles of
managers’ impact employees job satisfaction differently, this leads to employee’s job performance. Leader, manager, organizational
head and supervisor should not adopt only one form of leadership style. A mixture of different leadership styles brings more
satisfaction which in turn, increases the employee’s job performance and commitment toward organization. Performance and
productivity of every organization depends on the employee’s job satisfaction. Transformational leadership style is a way which
creates employees job satisfaction. It helps the employees to bring new ideas, becomes more innovative and creative and cope with the
external challenges.
Results of this study are consistent with the studies conducted by (Awamleh, 2004; Belonio, 2012; Belias and Koustelios, 2014;
Bushra et al., 2011; Chaudhry & Javed, 2012; Chaudhry et al., 2012; Darvish & Pour, 2013; Emery et al., 2007; Fernandes and
Awamleh, 2004; Hamidifar, 2009; Hanaysha et al., 2012; Javeed and Farooqi, 2013; Javed et al., 2014; Long and Thean, 2011; Long
et al., 2014; Omar & Hussin, 2013; Olcer, 2015; Ramos, 2014; Reddy, 2011; Rehman et al., 2012; Saeed et al., 2013; Voon et al.,
2011) which suggested that transformational and transactional leadership styles have a positive and significant relationship with
employees job satisfaction. But the findings of current study are different from previous researches due to the changing trend and
emerging economy. When these trend change, they compel the leader (manager) to change their leadership style and behavior
according to the situation. The results of this study conclude that if leaders (managers) follow the transformational leadership style
they can maximize their employee’s satisfaction. Another factor which also causes change in result is cultural factor, as previous
researches were conducted in different countries which have their own cultural values which are different from Pakistan as well as
Azad Kashmir.
5.1. Future Research
This research can be expanding by increasing total number of selected banks both from private and public sector. By increasing
number of variables used to evaluate the employees job satisfaction. This study suggests the future researchers to extend it by
choosing any other sector for same research such as, education, health and other organizations. Both questionnaire and interview
session can be used for better outcomes.
6. References
i. Arzi, S., & Farahbod, L. (2014). The Impact of Leadership Style on Job Satisfaction: A Study of Iranian
Hotels.Interdisciplinary journal of contemporary research in business, 6 (3).
ii. Bass, B. M. (1999). Two decades of research and development in transformational leadership. European journal of work and
organizational psychology, 8(1), 9-32.
iii. Bass, B. M. (1997). Does the transactional–transformational leadership paradigm transcend organizational and national
boundaries? American psychologist, 52(2), 130.
The International Journal Of Business & Management
(ISSN
2321
8916)
www.theijbm.com
129
Vol 5
Issue
8
August
, 2017
iv. Bayram, H., & Dinç, S. (2015). Academic Publishing House Researcher Published in the Russian Federation European
Researcher.
v. Bello, S. M. (2012). Impact of ethical leadership on employee job performance. International Journal of Business and Social
Science, 3(11), 228-236.
vi. Belonio, R. J. (2012). The Effect of Leadership Style on Employee Satisfaction and Performance of Bank Employees in
Bangkok. AU-GSB e-JOURNAL, 5(2).
vii. Belias, D., & Koustelios, A. (2014). Leadership and Job Satisfaction–A review. European Scientific Journal, 10(8).
viii. Darvish, H., & Pour, M. S. (2013). Measuring Employees Job Satisfaction as Outcome of Multifactor Leadership
Questionnaire (MLQ) Leadership Styles: An Empirical Study. Reef Resources Assessment and Management Technical
Paper, Vol. 38(2), 2013, 5, pp. 622-62.
ix. Hanaysha, J., Khalid, K., Mat, N. K., Sarassina, F., Rahman, M. Y., & Zakariak, A. S. (2012). Transformational leadership
and job satisfaction. American Journal of Economics, 145-148.
x. Igbaekemen, G. O. (2014). Impact of Leadership Style on Organization Performance: A Strategic Literature Review. Public
Policy and Administration Research, 4(9), 126-135.
xi. Iqbal, Asif. (2010). A Comparative Study of the Impact of Principals’ Leadership Styles on Job Satisfaction of
Teachers. Unpublished Ph. D. Thesis, University of Punjab. Lahore, Pakistan.
xii. Javaid, M. F., & Mirza, M. U. (2013, January). Leadership Style Enhances The Employee Organizational Commitment: A
Case Study of Educational Institutions in Lahore. International Journals and Conference of management, statistics and social
sciences.
xiii. Javed, H. A., Jaffari, A. A., & Rahim, M. (2014). Leadership Styles and Employees’ Job Satisfaction: A Case from the
Private Banking Sector of Pakistan. Journal of Asian business strategy, 4(3), 41-50.
xiv. Koech, P. M., & Namusonge, G. S. (2012). The effect of leadership styles on organizational performance at state
corporations in Kenya. International Journal of Business and Commerce, 2(1), 1-12.
xv. Kovjanic, S., Schuh, S. C., Jonas, K., Quaquebeke, N. V., & Dick, R. (2012). How do transformational leaders foster positive
employee outcomes? A selfdeterminationbased analysis of employees' needs as mediating links. Journal of Organizational
Behavior, 33(8), 1031-1052.
xvi. Long, C. S., & Thean, L. Y. (2011). Relationship between leadership style, job satisfaction and employees’ turnover
intention: A literature review. Research Journal of business management, 5(3), 91-100.
xvii. Ogbonna, E., & Harris, L. C. (2000). Leadership style, organizational culture and performance: empirical evidence from UK
companies. International Journal of Human Resource Management, 11(4), 766-788.
xviii. Ojokuku, R. M., Odetayo, T. A., & Sajuyigbe, A. S. (2012). Impact of leadership style on organizational performance: A case
study of Nigerian Banks. American Journal of Business and Management, 1(4).
xix. Saunders, M., Lewis, P., and Thornhill, A. (2009). Research methods for business students (5th ed.). Pearson Education
Limited., Edinburgh Gate, England.
xx. Turey, C. J. (2013). Perceptions of Leadership Styles and Job Satisfaction in a Sample of High School Athletic Directors in
the United States.
... The importance of leaders as the essential part of every organization cannot be denied (Adeel et al. 2017). Effective and efficient leadership are vital to the success of an organization (McCleskey 2014). ...
... Effective and efficient leadership are vital to the success of an organization (McCleskey 2014). Similarly, Adeel et al. (2017) posited that effective leadership plays a crucial role in motivating and satisfying employees with their jobs in order to achieve organizational goals efficiently and effectively. Mintzberg (2010) indicated that leaders are important tool of the organization which help to enhance production and profitability and nurture innovation in the organization, but the success of the organization depends upon the leadership style and the supportive culture of the organization that are created for employees to enable them perform well to cope within a competitive environment. ...
... Therefore, it is crucial for every organization to understand its leadership behavior and culture in order to benefit from the outcome of effective leadership and cultural practices in the organization (Naicker 2008). Adeel et al. (2017) argue that several studies have been conducted on leadership styles globally which explains leadership styles such as autocratic, bureaucratic, laissez-faire, democratic, situational, transactional, participative and transformational leadership but transactional and transformational leadership styles are the most important and more related with employees' commitment. Javeed and Farooqi (2013) argue that "transformational leadership asserts influence on the attitude and behaviours of em-ployees and inspires them for the well-being of organization and also for their interest and building of commitment towards organizational goals and objectives." ...
Article
This paper investigated the effect of leadership style and organizational culture on employees’ commitment at Zimbabwe Electricity Supply Authority. It adopted a quantitative research design and data was collected through self-administered research questionnaire. A sample of 250 respondents was selected using simple random sampling. The results reveal that leadership styles and organizational culture have significant positive effect on organizational commitment, and that transformational leadership style has more positive influence on employee commitment than transactional leadership style. The paper also revealed a significant positive relationship between organizational culture and organizational commitment. However, the paper recommends that organizations should not focus only on one leadership approach; a combination of both transactional and transactional leadership should be implemented. The paper also recommends that organizational leaders should be equipped with the best leadership practices to assist in boosting employees’ commitment to work and their overall organizational performance.
... Various researchers such as Izidor and Iherihanma (2015) and Kaladeh, (2013) asserted that leadership style is crucial for the job satisfaction of employees and their intention to stay, but note that lack of job satisfaction can increase the rate of turnover and decrease employee morale in any organization including Agricultural Training Institute. Adeel Hashmi and Iqbal (2017) argue that several studies have been globally conducted on leadership styles that explain leadership styles such as autocratic, bureaucratic, laissez-faire, democratic, situational, transactional, participative, and transformational leadership but transactional and transformational leadership styles are the most important and more related to employees' job satisfaction. Javeed and Farooqi (2013) argue that "transformational leadership asserts influence on the attitude and behaviors of employees and inspires them for the wellbeing of the organization and also for their interest and building of commitment towards organizational goals and objectives." ...
Article
Full-text available
Background: The workplace is a complex and cultured environment that requires intellectual leadership and a different degree of management style due to global economic competitiveness. Objective: The objectives of the study are to examine the relationship between leadership style, organizational culture, and job satisfaction among workers in the Agricultural and Rural Management Training Institute (ARMTI) Ilorin, Kwara State, Nigeria. Method: This research study employed a descriptive survey research method. The total number of employees in ARTMTI in Ilorin was 762. Using a simple random sampling technique, a total of 401 respondents was randomly selected from the population of the study for questionnaire administration. 401 questionnaires were distributed out of which 325 questionnaires were retrieved and analyzed for the study. Data were analyzed using Pearson Moment Correlation on the relationships between leadership style, organizational culture, and job satisfaction. Result: The study found that leadership style and organizational culture were significantly correlated with job satisfaction at a 0.05 level of significance. Conclusion: Based on the findings of the study, the study concluded that there is a relationship between leadership style, organizational culture, and job satisfaction among workers in the Agricultural and Rural Management Training Institute (ARMTI) Ilorin, Kwara State, Nigeria. Recommendation: The study recommended that leaders should realize that influencing the satisfaction of employees leads to higher performance and lower turnover rates among other things. Leadership in organizations should be assessed and managers should become aware of what is needed to obtain positive results from employees to improve performance. Originality: This article is original and there is no potential conflict of interest.
... Employees' perception of the organizations commitment intensely influenced the psychological attachment of individuals to an organization. Adeel, Hashmi, and Iqbal (2017) suggested that organization needs to enhance the job performance of its employees for the betterment of the organization by motivating and creating a sense of commitment. Cohen and Vigoda (2000) argued that when the incentives exceed employee expectations and involvement then they tend to develop strong commitment and when the incentives do not exceed expectations, commitment does not occur. ...
Article
Full-text available
Organizational Justice has been considered a significant subject in the operative organizations functioning. Whereas Organizational Citizenship Behavior is important to achieve the organizational success therefore organizations encourage and facilitate the OCB in order to produce effectiveness and efficiency in organization functions. The primary aim of this research is to investigate the role of organizational justice and organizational citizenship behavior in enhancing employees’ performance in academic setting. Organizational justice plays a pivotal role in shaping individual behavior and particularly extra role behavior such organizational citizenship behavior. To answer the research question, the cross sectional data were collected through a questionnaire from 190 employees working in different universities of Azad Kashmir Pakistan. Our findings reveal that there is a significant positive association among organizational justice (OJ), organizational citizenship behavior (OCB) and Employees performance (EP). The results indicated that Organizational Justice and Organization Citizenship Behaviors was significant predictor of Employees performance. This research contributes to the managerial literature by identifying and applying theoretical concepts into a different sample and organizational settings.
Article
Full-text available
A vast literature describes transformational leadership in terms of leader having charismatic and inspiring personality, stimulating followers, and providing them with individualized consideration. A considerable empirical support exists for transformation leadership in terms of its positive effect on followers with respect to criteria like effectiveness, extra role behaviour and organizational learning. This study aims to explore the effect of transformational leadership characteristics on followers’ job satisfaction. Survey method was utilized to collect the data from the respondents. The study reveals that individualized consideration and intellectual stimulation affect followers’ job satisfaction. However, intellectual stimulation is positively related with job satisfaction and individualized consideration is negatively related with job satisfaction. Leader’s charisma or inspiration was found to be having no affect on the job satisfaction. The three aspects of transformational leadership were tested against job satisfaction through structural equation modeling using Amos.
Article
Full-text available
The purpose of the present study is to provide a critical review of the relation between leadership and the levels of job satisfaction experienced by employees. An organization's or institution's leadership refers to its leader's style of providing direction, implementing plans and motivating employees. Job satisfaction refers to the employees' perceptions of their working environment, relations among colleagues, earnings and promotion opportunities. The review shows that contemporary job-related phenomena like job satisfaction are related to employees' relations with colleagues and superiors, performance and perceptions of their organization's specific culture. In addition, the employees' preference of leadership style is likely to be affected by several factors, including demographic characteristics. It can be supported, therefore, that measuring and analyzing an institution's leadership style in combination with its employees' demographic and individual characteristics may lead to valuable conclusions, so that job satisfaction is promoted. Introduction Recent facts in the fields of economy and industry have led the global labor market to rapid changes and imbalance. Competition among organizations and companies has increased, annual profit has decreased and the overall function of worldwide business is being under threat. As a result, the focus of companies all over the world has turned to human resources management and customer satisfaction. As Emery and Barker (2007) explain, a major determinant of customer satisfaction within service industry is the attitude of customer contact personnel. In addition, they mention a citation by John Smith, former CEO of Marriott Corporation: "You can't have happy customers served by unhappy employees" (Heskett, Sasser &
Article
Full-text available
Although followers’ needs are a central aspect of transformational leadership theory, little is known about their role as mediating mechanisms for this leadership style. The present research thus seeks to integrate and extend theorizing on transformational leadership and self- determination. In particular, we propose that the satisfaction of followers’ basic needs (autonomy, competence, relatedness) mediates the relationship between transformational leadership and em- ployee outcomes (job satisfaction, self-efficacy, commitment to the leader). We tested this model in two studies involving employees from a broad spectrum of organizations in Germany (N = 410) and Switzerland (N = 442). Results revealed largely consistent patterns across both studies. The link between transformational leadership and occupational self-efficacy was mediated solely by need for competence fulfillment; the link between transformational leadership and commit- ment to the leader was mediated solely by need for relatedness fulfillment. The mediating pattern for the link between transformational leadership and job satisfaction varied slightly across stu- dies. In Study 1, only need for autonomy fulfillment was a significant mediator, while in Study 2, all three needs mediated this relationship. Taken together, our study integrates theorizing on transformational leadership and self-determination by corroborating that need fulfillment indeed is a central mechanism behind transformational leadership.
Article
Full-text available
The topics of leadership and organizational culture have attracted consider-able interest from both academics and practitioners. Much of the interest in the two areas is based on explicit and implicit claims that both leadership and culture are linked to organizational performance. However, while the links between leadership and perform-ance and between culture and performance have been examined independently, few studies have investigated the association between the three concepts. This paper examines the nature of this relationship and presents empirical evidence which suggests that the relationship between leadership style and performance is mediated by the form of organizational culture that is present. The paper concludes with a number of implications for theory and practice.
Article
The study examined the impact of leadership style on organizational performance in selected Banks, in Ibadan Nigeria. Purposive sampling technique was adopted in selecting a total of sixty (60) respondents as sample for the study, while relevant data was gathered with the aid of a structured questionnaire. One hypothesis was formulated and inferential statistical tool was used to analyze the data specifically Pearson product moment correlation was used to examine the relationship between leadership style dimensions and organizational performance, while Regression analysis was used to examine the significant effect of leadership style dimensions on followers and performance. Findings showed positive and negative correlation between leadership style dimensions and organizational performance. It was also found that leadership style dimensions jointly predict organizational performance, which counted for 23% variance of performance. The study concluded that transformational and democratic leadership style should be employed by the Banks’ management in order to wax stronger in a global competitive environment.
Article
Employee's turnover has been always a key concern issues faced by organizations regardless of its locations, sizes or natures of business. All parties in the organization play crucial role in promoting human capital to achieve competitive advantage. Therefore, high employee's turnover definitely will defeat this objective. Leadership styles and job satisfaction have been identified in this study that gives great impact to employees' turnover intention. Base on the literature review, majority of the studies had identified a negative relationship between job satisfaction and employees' turnover intention in various fields of industries. Similarly, researches on examining the relationship between leadership styles and job satisfaction have also indicated substantial degree of co-relationship between these two variables.
Article
Hello everyone. This is a text book and so I am unable to share it with you for copyright reasons. Apologies for this. Mark
Academic Publishing House Researcher Published in the Russian Federation European Researcher
  • H Bayram
  • S Dinç
iv. Bayram, H., & Dinç, S. (2015). Academic Publishing House Researcher Published in the Russian Federation European Researcher.