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Effect of transformational leadership on employees’ job satisfaction: An analysis of public sectors universities of Northern areas of KP, Pakistan

  • 2017 | Volume: 1 | Issue: 1 | Page: 9-18


The aim of this study is to examine the impact of transformational leadership on employees’ job satisfaction. The study was conducted in the public sectors universities of northern area KPK, Pakistan. A sample size of 100 employees was selected using convenient sampling techniques. The data were collected from grade 16 and above employees’. A total of 130 questionnaires were distributed among these employees out of whom 100 filled questionnaires. Thus, the survey participation was 76.92%. These 100 properly filled questionnaires were used for data analysis. Data were analyzed through Descriptive statistics, correlation analysis, and regression analysis. The result of the study shows that there is a statistically significant positive relationship between the job satisfaction and the intellectual stimulation of the transformational leadership. Therefore, steps needs to be taken to convince and prepare leaders in universities that focuses on this aspect of the transformational leadership. A larger sample size with the inclusion of other universities is recommended to further validate or otherwise the results of this study.

Keywords and JEL Classification


Transformational Leadership, Inspirational Motivation, Job Satisfaction

JEL Classification

M12; M52

1. Introduction

   Organizations are a social system in which the most valuable assets for the efficiency and effectiveness are the availability of skilled human resources. Human resources play an important role in achieving organizational goals and objectives (Mosadragh, 2003). In the more competitive business climate due to globalization, organization are doing their try best to achieve competitive advantages regarding the competency of human resources. Selection of employees from different regions, cultures and backgrounds is a hard work and depends on the quality of the organization's leadership which they have (Albion & Gagliardi, 2007). The success of organizations depend upon the involvement, efforts and commitment of their labour or workforce. The major factors for organization's effectiveness is their manager’s leadership style. Organizations are usually more concerned about the development and further improvement of their leadership. Leadership is an activity which is mostly relevant with the people, it is the process of attracting people to achieve the goals of organizations (Skansi, 2000). The awareness that a leader encourages its subordinates to achieve and reach their potential. The transformational leadership also provide the resources which are required for devolvement and achieving the goals (Ansari & Arasto, 2008). In addition, transformational leadership is an advisor to his subordinates for training, mentoring, encouragement and individual development. The transformational leadership serves as role a model and provide and foster climate of good work for his subordinate employees (Hassan et. al, 2013).

   The transformational leadership has been divided into five categories which namely idealized influence (attributed), idealized influence (behaviour), inspirational motivation, individual consideration and intellectual stimulation (Bass & Avolio, 1998). The socialized personality of a leader and whether he or she is perceived as being confident and commitment of high order usually has an idealized influence (attributed). Similarly, compelling actions of the leader is based on the value, beliefs or ideals and that can be termed as an idealized influence (behaviour). Moreover, the perception of the leaders to his or her followers through mentoring, encouragement and maintaining followers to self-actualization is termed as individual consideration. Furthermore, when a leader inspires and appeals to his or her followers can be referred to as inspirational motivation. Finally, the extent to which a leader engages in a behaviour that causes its followers is called intellectual stimulation. Leadership style plays a vital role for the employee’s job satisfaction. The behaviour and attitude of employees towards their job and organization, their success in the organization is generally called employee's job satisfaction (Mohammad & Hossein 2006). Similarly, employee’s happiness leads to more productive and profitability for organization (Sarri & Judge, 2004).

   It has been argued that transformational leadership has an impact on employee’s job satisfaction. The aim of the study is to find out the impact transformational leadership on employee’s job satisfaction in the public sectors universities of the northern area of KPK, Pakistan. This study will examine the impact of idealized influence, individualized consideration, inspirational motivation, and intellectual stimulation on employees’ job satisfaction.

2. Review of Literature
   Review of the literature below presents a systematic overview definitions of the leadership, its various types and how do they have impact on job satisfaction of the employees. The literature review is organized as follows:

2.1 Leadership

   The systematic study of leadership began in early 1930s with the study of the “great man” (House & Aditya, 1997). House & Aditya, (1997) described the various traits and quality of a leadership which can distinguish leaders from non-leaders. They found that only a few traits and quality of the leader were positively related to the leader appearance and leadership effectiveness. The word “leadership” in an organization generally means the approaches adopted by the leaders in the daily activities with the workers. It included many dimensions like standards, norms, items or issues observed in job conditions and effect on worker emotional performance, personality and behaviour (Lok & Crawford, 2004). Leadership is one of the most important topics that has been studied to examine its effcet on firms performance and jobs staifactions all over the world (Kuchler, 2008). Moreover, leadership is the process of convincing people of the accomplishment of the desired goals or outcomes (De Jong & Hartog, 2008). In addition, researchers stated that leadership performs a key role in determining the success or failure of an organization (Lok & Crawford, 2009). Gill (2010) argued that leaders help to motivate, stimulate, encourage and recognize their followers of the accomplishments and thus further efficiency is achieved. Furthermore, leaders guide his or her subordinates to do work as a team in order to complete the goals and objectives of the organizations in a timely and efficient manner (Weihrich, Cannice, & Koontz , 2010). It has been further demonstrated that even when the employees do not agree with their boss, they will still accept the influence of the boss because of their power or position they hold in the organization (Cialdini & Griskevicius, 2010). Effective leaders take his or her subordinates into confidence and groom them as an important part of the whole team work which affect the outcomes (Bennis & Nanus, 1985). Similarly, leadership not only provide vision and guidelines to the follower’s leaders but also provide support, cooperation, coordination and guiding the team efforts towards achieving the common purpose and goals (Morgan, 2012). Recently, the term transformational leadership has been popularized which has been explained along with its types in the following sections.

2.2 Transformational Leadership

   The concept of transformational leadership was initially introduced in the study of (Burns, 1978). Burns (1978) focused initially on the value of the contemporary type of leadership and then related it to more people specific as world continuously and rapidly observed changes. According to him a leader is transformational when he/she supports, cooperates and encourages his or her subordinates to raise their moral and motivational levels, perceptions, beliefs and perception to the goals and objective of the organization (Burns, 1978). Furthermore, Burns leadership theory explained that the leader is one who motivates his subordinates to do more work than originally expected of him/her (Bass, 1985).

   Transformational leadership has four components which are an idealized influence, individualized consideration, intellectual stimulation and inspirational motivation (Avolio et al., 1995). Idealized influence is also known as charisma. In this type of leadership styles, leaders act as a strong role model for his or her followers due to their exceptional skills and high principled, ethical and moral standards (Avolio et al., 1995). Moreover, idealized influence has a very strong positive relationship with the efforts of the subordinates at work (Bycio, Hackett & Allen, 1995). In addition, idealized influence leaders are trained to take risks while maintaining ethics in their conduct and actions (Bass & Riggio, 2006).

   Under the individualized types of leaderships, leaders pay attention to each and every individual needs and to get best performance out of each individual (Bass & Avolio, 1990). Furthermore, researchers also demonstrated that in this type of leadership roles, leaders provide customized socio-emotional support to his or her subordinates to promoting and guide to get best outcomes from them as per their abilities. Intellectual stimulation type of leadership is related with the activities of the leaders to challenge creativity and innovation, the leaders motivates and encourages his or her followers to find new ways of doing things, provide opportunities to learn and explore solutions to difficult problems (Hater & Bass, 1988). Moreover, researcher stated that intellectual stimulation is the type of leadership where the leaders strongly encourages the followers to explore and go beyond their potential levels of their abilities (Bycio, Hackett & Allen, 1995).

   In inspirational motivation type of leadership, leaders motivate and attract his or her followers to achieve the goals and make himself an a motivations as a high achiever (Bass, 1985). In addition, in this type of leadership, the leader inspires his or her subordinates by communicating his vision (Shibru & Darshan, 2011).

2.3 Employee’s job Satisfaction and leadership style

   Job satisfaction has been discussed in several studies. Researchers have also discussed different types and determinants of job satisfaction. It involved different types of satisfactions relevant to pay, supervision, promotion, working conditions, organizational practice and co-worker relationships (Misener, et al., 1996). Job stress is a combination of feelings or effective responses which are associated with the circumstances of performing jobs. Job satisfaction is how different human being feel about different dimensions of their jobs (Spector, 1997). Moreover, job satisfaction is extent of positive effective orientation towards job (Gurney, Mueller & Price, 1997). In addition, job satisfaction is the limit up to which an employee likes his or her job (Stamps, 1997). The evaluation of three different items of a human being which are, his own duty, the situation or an environment in which he or she is doing a job and the contents of the job he or she really performs (Mosadeghrad, 2003). Furthermore, job satisfaction is present inside in the psyche of a person where an employee will express the level of his or her job satisfaction (Stone & Petterson, 2005). In addition, when the workers are satisfied from their job, then they have positive and pleasant attitude towards his or her job. On the other hand, if the employees are dissatisfied from his or her job so they have negative and unpleasant situation towards his or her job (Armstrong, 2001). Job satisfaction is an attitude which is related with overall life attitude and service quality (Iles, Preece & Chuai, 2010).

2.4 Transformational Leadership and Employee’s job Satisfaction

   The leadership research examines the significance of leadership in building differences in employee’s job satisfaction. In 1950s and 1960 several studies explored manager use of his or her leadership behaviours to increase the level of employee’s job satisfaction (Northouse, 2018). The leader's quality to cooperate and motivate his or her subordinates has great impact on employee’s job satisfaction and self-confidence (Chen and Spector 1991; Brockner 1988; De Cremer 2003). Leader who is cooperative and supportive to his or her subordinates enjoys high level of employee’s job satisfaction than those leaders who are unsupportive and uncooperative with subordinates.

   Leadership style is an important indicator of employee’s job satisfaction (Al-Ababneh, 2013). The behaviour of a leader is positively related with employee’s job satisfaction. Therefore, a leader needs to follow an effective leadership behaviour because of its significant impact on employee’s job satisfaction (Yousef, 2000). It has been shown that the followers have more interest in transformational leadership rather than transactional leadership (Druskat, & Kayes, 2000). Transformational leadership and organizational effectiveness have significant relationship in the South Africa cricket administration (Ristow et al., 1999). Some researchers also found that work withdrawal and transformational leadership has negative relationship (Gill et al., 2010).

3. Research Methods

4. Results

5. Summary, Conclusions and Recommendations

   This part of the study summaries the overall study. The aim of the study was to find the impact of transformational leadership on employees’ job satisfaction in the public sectors universities of the Northern area of the Khyber Pakhtunkhwa, Pakistan. The result of the study shows that there is a statistically significant positive relationship between the job satisfaction and the intellectual stimulation of the transformational leadership. Others dimension of the transformational leadership such idealized influence, individualized consideration, inspirational motivations were either negatively related or/and insignificant. This research shows that the most important for the universities was the intellectual stimulation. Therefore, steps needs to be taken to convince and prepare leaders in universities that focuses on this aspect of the transformational leadership. Further, this study was conducted in a few newer Northern Universities in KP, Pakistan with a small sample size and the results may not generalize to other areas. Therefore, a larger sample size with the inclusion of other universities may yield different results or validate these results of this study. There is a replication needed of this study in a wide areas and bigger sample size.


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  Keywords and JEL Classification
1. Introduction
2. Review of Literature
      2.1 Leadership
      2.2 Transformational Leadership
      2.3 Employee’s job Satisfaction and leadership style
      2.4 Transformational L'ship & Emp job S'faction
3. Research Methods
4. Results
      4.1 Descriptive Statistics
              4.1.1 Age of the Respondents
              4.1.2 Qualification of the Respondents
              4.1.3 Gender of the Respondents
              4.1.4 Experience of the Respondents
              4.1.5 C'lation Anal. bw Job S'faction & L'ship...
      4.2 Econometrics Estimation
5. Conclusion
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