Abstract
We study the relationships and intervening mechanism between leaders’ transformational and contingent reward behaviors and the raters’ satisfaction with their supervision in the context of nonprofit and for-profit management settings in the United States. The results show that regardless of the context, transformational leadership on the part of the manager relates positively to the raters’ satisfaction with supervision and that this relationship is stronger in nonprofit organizations. Our results also provide evidence for the differential impact of contingent reward in for-profit and nonprofit settings. In the for-profit context, the relationship between contingent reward and satisfaction with supervision is negative while in nonprofit organizations this relationship is positive. In both contexts, transformational leadership positively moderates the effect of contingent reward on employee satisfaction with supervision. Our findings contribute to an improved understanding of how managers’ different leadership styles affect satisfaction depending on the organizational context. Practical implications for managers in both nonprofit and for-profit settings are provided
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