Role of Leadership

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Role of transformational and transactional leadership on job satisfaction and career satisfaction Peer-reviewed & Open access journal ISSN: 1804-1205 | www.pieb.cz

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BEH, April, 2010

BEH - Business and Economic Horizons Volume 1 | Issue 1 | April 2010 |pp. 29-38

Role of transformational and transactional leadership on job satisfaction and career satisfaction Adnan Riaz1, Mubarak Hussain Haider2 Department of Business Administration, Allama Iqbal Open University1, Mohammad Ali Jinnah University2, Pakistan e-mail: adnan_riaz@aiou.edu.pk; e-mail: gmtesla1@gmail.com

Effective leadership always plays an important role in the growth and better performance of the organization. This research has been conducted to determine the impact of transformational and transactional leadership style on job success and career satisfaction. A total of 240 responses (n = 240) from various private organizations working in the capital city of Pakistan were collected using various measures of TLI Questionnaire along with items of job success and career satisfaction. Results showed positive trends of all variables. Transactional leadership is found significantly related to job success while transformational leadership and job success are found highly related with career satisfaction. The results of regression analysis show that job success is more dependent on transformational and transactional leadership as compared to career satisfaction. Managerial implications are presented based upon these results. JEL Classifications: M51, M54 Keywords: Transactional leadership, transformational leadership, job success and career satisfaction.

Introduction

Organizations all over the world are deeply concerned with understanding, searching and developing leadership. Regardless of the type of organization, leadership is discerned to play a vital role in establishing high performing teams. Leaders are facing greater challenges than ever before due to the increased environmental complexity and the changing nature of the organization. If we trace back into history, it becomes evident that leaders should have the ability to draw out changes in relation with environmental demands. The current era not only demands having a competitive edge and sustained profitability but also the maintenance of ethical standards, complying with civic commitments and establishing a safe and equitable work environment. Leadership is one of the critical elements in enhancing organizational performance. Being responsible for the development and execution of strategic organizational decisions, leaders have to acquire, develop and deploy organizational resources optimally in order to bring out the best products and services in the best interest of stakeholders. In short, effective leadership is the main cause of competitive advantage for any kind of organization (Zhu et al., 2005; Avolio, 1999; Lado et al., 1992; Rowe, 2001). Leaders are conferred the opportunity to lead, not because they are appointed by senior managers; they lead because they are perceived and accepted by followers as leaders (Boseman, 2008). In fact a leader has to provide the followers what is needed to keep them productive and proceed towards the shared vision. But if the leaders fail to provide what was promised before, it flourishes the sense of distrust and de-motivation. Thus a leader needs to be focused on his followers’ needs both within and outside the organization to keep them moving ahead consistently. Another main quality of a leader is “foresight”. Leaders can anticipate the future likelihoods and plan alternative strategies to meet uncertainties. Such traits are common in historical leaders. This sense of anticipation is believed to be innate and cannot be produced in managers.

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Business & Economic Horizons

Role of transformational and transactional leadership on job satisfaction and career satisfaction

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BEH, April, 2010...
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