The Impact of Transformational Leadership on Employee Reactions towards Individual Work Performance: A Conceptual Paper

Albert Apoi,Hamrila Binti Abdul Latip

doi:10.6007/ijarbss/v9-i8/6207

Abstract

Interest in the impact of transformational leadership on employee reactions for decades, been the focus of research studies and variety of countries. Employee reactions are usually defined in this research specifically in terms of organizational commitment, job satisfaction and citizenship behavior. Either while such studies have focused on direct or indirect relationships between the specific factors, there is little evidence of any research, which examines the leadership effectiveness as a serially integrative relationship. This study therefore proposes a more comprehensive model of transformational leadership, which incorporates the key factors of employee reactions. The expectancy theory of motivation is used to expand and clarify the current model of leadership effectiveness. This paper claims that the reactions of employees are crucially nested in the transformational leadership – individual work performance relationship. In particular, the significance of this paper is therefore to develop the serially integrative relationship model between transformational leadership, organizational commitment, organization citizenship behavior, job satisfaction and individual work performance.

Highlights

Leadership is a process of social influence that can increase effectiveness of the leader and the organization (Erkutlu, 2008)
Studies of the effects of transformational leadership on employee reactions; namely organizational commitment, organizational citizenship behavior, and job satisfaction have attracted the attention of researchers over the last 20 years, in parallel with the shift of work motivation from a performance-centric to a person-centric perspective (Kanfer et al, 2008; Finkelstein et al, 2015)
Chen & Fahr (2015) pointed out that effective leaders should have correct leadership characteristics, exhibited in a suitable situation, while from a different perspective Erkutlu (2008) suggested that transformational leadership behaviors should be exhibited if an organization is to succeed in a rapidly changing business environment. Following on from this body of research, this study explores the significance of the impact of transformational leadership behaviors; comparing Transactional Leadership and Laissez-Faire Leadership styles

Summary

Introduction

Leadership is a process of social influence that can increase effectiveness of the leader and the organization (Erkutlu, 2008). Studies of the effects of transformational leadership on employee reactions; namely organizational commitment, organizational citizenship behavior, and job satisfaction have attracted the attention of researchers over the last 20 years, in parallel with the shift of work motivation from a performance-centric to a person-centric perspective (Kanfer et al, 2008; Finkelstein et al, 2015). The transactional leaders lead the team by negotiating with the followers to achieve an economic exchange relationship, where the follower will be rewarded monetarily and received a recognition in return for expected work performance (Sarros & Santora, 2001) It has been argued in the literature that transactional and transformational forms of leadership should be combined in order for workers and organizations to benefit to their maximum extent (Brian & Lewis, 2004; Judge & Piccolo, 2004; Dai et al, 2013). Transformational leadership has, four interconnected elements: idealized influence (or personal appeal), inspirational motivation, intellectual stimulation, and individualized consideration (Bass, 1997)

Organizatio H2 nal Commitmen t

Findings

Conclusions