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Leadership styles and its impact on subordinates job-satisfaction
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An Empirical Study on the Impact of Transformational
Leadership Behaviours of Bank Managers on
Subordinates Job Satisfaction among Commercial
Banks
Mohamed Rikas Fareed
Submitted to the
Business School
In partial fulfillment of the requirements for the Degree of
Bachelor’s of Arts in
Business Administration (Hons)
GF06B1BA
Supervised By:
Mrs. Kanchanie Jayawardena
Staffordshire University
August 2007, Colombo
TABLE OF CONTENTS
ABSTRACT....................................................................................................................................................8
ACKNOWLEDGEMENT.............................................................................................................................9
CHAPTER 1..................................................................................................................................................10
1.0 INTRODUCTION..................................................................................................................................10
1.1 INTRODUCTIONS TO RESEARCH............................................................................................................101.1.1 Introduction to Transformational leadership styles....................................................................101.1.2 Introduction to Job-satisfaction...................................................................................................111.1.3 Introduction to the Sri Lankan Commercial Banking Industry...................................................12
1.2 PROBLEM BACKGROUND......................................................................................................................131.3 RESEARCH ISSUES................................................................................................................................141.4 OBJECTIVES OF THE STUDY..................................................................................................................151.5 SIGNIFICANCE OF THIS STUDY..............................................................................................................16
1.5.1 Theoretical Significance..............................................................................................................161.5.2 SOCIAL SIGNIFICANCE.......................................................................................................................161.5.3 ORGANIZATIONAL SIGNIFICANCE.....................................................................................................161.6 LIMITATIONS OF THE STUDY................................................................................................................17
1.6.1 De-Limitations.............................................................................................................................171.6.2 Sample size...................................................................................................................................181.6.3 Variables......................................................................................................................................181.6.3 Feed back.....................................................................................................................................181.6.4 Time.............................................................................................................................................19
1.7 SUMMARY OF CHAPTER 1....................................................................................................................19
CHAPTER 2..................................................................................................................................................20
2.0 LITERATURE REVIEW......................................................................................................................20
2.1 INTRODUCTION.....................................................................................................................................202.2 LEADERSHIP AND LEADERSHIP STYLES................................................................................................20
2.2.1 Transformational leadership.......................................................................................................212.2.2 Transactional leadership.............................................................................................................222.2.3 Laissez-faire leadership...............................................................................................................22
2.3 PREVIOUS RESEARCH FINDINGS OR EMPIRICAL EVIDENCE..................................................................232.4 INDEPENDENT VARIABLE......................................................................................................................27
2.4.1 Transformational leadership.......................................................................................................272.4.2 Characteristics of Transformational leadership behaviours.......................................................292.4.2.1 Idealized influence....................................................................................................................292.4.2.2 Inspirational motivation............................................................................................................322.4.2.3 Intellectual stimulation.............................................................................................................342.4.2.4 Individualized consideration.....................................................................................................352.4.3 Demographic characteristics of managers (Age, marital status, sex, level of education, length of time in position)....................................................................................................................................38
2.5 DEPENDENT VARIABLE.........................................................................................................................402.5.1 Employees Job satisfaction..........................................................................................................402.5.2 Work conditions...........................................................................................................................412.5.3 Supervision...................................................................................................................................432.5.4 Pay and salary.............................................................................................................................442.5.5 Career development.....................................................................................................................45
2.6 SUMMARY OF CHAPTER 2....................................................................................................................47
CHAPTER 3..................................................................................................................................................48
2
3.0 RESEARCH DESIGN............................................................................................................................48
3.1 CONCEPTUAL FRAMEWORK.................................................................................................................483.1 LIST OF HYPOTHESES THAT WERE FORMULATED................................................................................503.2 SUMMARY OF CHAPTER 3....................................................................................................................52
CHAPTER 4..................................................................................................................................................53
4.0 METHODOLOGY.........................................................................................................................53
4.1 INTRODUCTION TO THE CHAPTER.........................................................................................................534.2 RESEARCH APPROACH..........................................................................................................................534.3 RESEARCH DESIGN...............................................................................................................................544.3 RESEARCH STRATEGY..........................................................................................................................544.4 RESPONDENTS AND SAMPLING PROCEDURE........................................................................................54
4.4.1 Sampling......................................................................................................................................544.4.2 Research procedure.....................................................................................................................55
4.5 DATA COLLECTION AND DATA ANALYSIS METHODS...........................................................................554.6 DATA COLLECTION...............................................................................................................................56
4.6.1 Primary data................................................................................................................................564.6.2 Secondary data.............................................................................................................................564.6.3 Designing the questionnaire........................................................................................................564.6.4 Development of the Questionnaire...............................................................................................574.6.5 Pilot Study....................................................................................................................................574.6.6 Distribution of the questionnaire.................................................................................................574.6.7 Measurement of variables in the Questionnaire..........................................................................58
4.7 STATISTICAL TREATMENT OF DATA......................................................................................................594.8 JUSTIFICATION OF THE CHOSEN METHOD.............................................................................................594.9 SUMMARY OF CHAPTER 4....................................................................................................................60
5.0 ANALYSIS AND FINDINGS................................................................................................................61
5.1 INTRODUCTION TO CHAPTER................................................................................................................615.2DESCRIPTIVE ANALYSIS........................................................................................................................61
5.2.1Gender...........................................................................................................................................615.2.2 Age...............................................................................................................................................625.2.3 Education level.............................................................................................................................635.2.4 Income level.................................................................................................................................645.2.5 Experience....................................................................................................................................645.2.6 Designation..................................................................................................................................655.2.7 Idealized Influence.......................................................................................................................665.2.8 Inspirational Motivation..............................................................................................................675.2.9 Intellectual Stimulation................................................................................................................685.2.10 Individualized Consideration.....................................................................................................695.1.11 Supervision.................................................................................................................................705.1.12 Salary.........................................................................................................................................715.1.13 working condition mean.............................................................................................................725.1.14 Achievement and Career opportunities.....................................................................................735.1.15 Overall leadership style.............................................................................................................755.1.16 Overall job satisfaction..............................................................................................................76
5.2 MANAGER’S DEMOGRAPHIC VARIABLES BASE ON DATA GATHERED FORM MANAGERS.......................775.2.1 Manager’s gender........................................................................................................................775.2.2 Managers Age..............................................................................................................................775.2.3 Manager’s Educational level.......................................................................................................785.2.4 Managers Experience level..........................................................................................................795.2.5 Managers Income level................................................................................................................80
5.3 RELIABILITY ANALYSIS OF THE QUESTIONNAIRE................................................................................815.4 RESULTS OF THE REGRESSION ANALYSIS.............................................................................................82
3
5.4.1 H1.................................................................................................................................................825.4.2 H2.................................................................................................................................................835.4.3 H3.................................................................................................................................................835.4.4 H4.................................................................................................................................................845.4.5 H5.................................................................................................................................................845.4.6 H6.................................................................................................................................................855.4.7 H7.................................................................................................................................................855.4.8 H8.................................................................................................................................................865.4.9 H9.................................................................................................................................................865.4.10 H10.............................................................................................................................................875.4.11 H11.............................................................................................................................................875.4.12 H12.............................................................................................................................................885.4.13 H13.............................................................................................................................................885.4.14 H14.............................................................................................................................................895.4.15 H15.............................................................................................................................................895.4.16 H16.............................................................................................................................................905.4.17 H17.............................................................................................................................................905.4.18 H18.............................................................................................................................................915.4.19 H19.............................................................................................................................................915.4.20. H20............................................................................................................................................925.4.21 H21.............................................................................................................................................925.4.22 H22.............................................................................................................................................935.4.23 H23.............................................................................................................................................935.4.24 H24.............................................................................................................................................945.4.25 H25.............................................................................................................................................945.4.26 H26.............................................................................................................................................95
5.5 SUMMARY OF TESTED HYPOTHESES....................................................................................................955.6 FURTHER FINDINGS..............................................................................................................................98
5.6.1 Hypotheses testing for Transformational Leadership styles and Supervision.............................995.6.2 Hypotheses testing for Leadership styles and Salary................................................................1005.6.3 Hypotheses testing for Leadership styles and Work condition..................................................1025.6.4 Hypotheses testing for Leadership styles and Career opportunities.........................................1045.6.5 Hypotheses testing for Leadership styles and over all job-satisfaction of subordinates...........105
5.7 SUMMARY OF CHAPTER 5...................................................................................................................107
CHAPTER 6................................................................................................................................................108
6.0 DISCUSSION AND IMPLICATIONS...............................................................................................108
6.1 INTRODUCTION TO THE CHAPTER.......................................................................................................1086.2 DISCUSSION AND FINDINGS................................................................................................................1086.3 IDEALIZED INFLUENCE.......................................................................................................................1086.4 INSPIRATIONAL MOTIVATION..............................................................................................................1096.5 INTELLECTUAL STIMULATION.............................................................................................................1106.6 INDIVIDUALIZED CONSIDERATION......................................................................................................1116.7 TRANSFORMATIONAL LEADERSHIP STYLE..........................................................................................1126.8 DEMOGRAPHIC VARIABLES OF MANAGERS.........................................................................................1136.9 COMPETITIVE COMPARISON PRIVATE AND PUBLIC BANKS................................................................1156.10 SUMMARY OF CHAPTER 6................................................................................................................118
CHAPTER 7................................................................................................................................................119
7.0 RECOMMENDATIONS.....................................................................................................................119
7.1 INTRODUCTION TO THIS CHAPTER......................................................................................................1197.2 RECOMMENDATIONS ON IDEALIZED INFLUENCE................................................................................1197.3 RECOMMENDATIONS ON INSPIRATIONAL MOTIVATION.......................................................................1207.4 RECOMMENDATIONS ON INTELLECTUAL STIMULATION.....................................................................120
4
7.5 RECOMMENDATIONS ON INDIVIDUALIZED CONSIDERATION...............................................................1217.7 SUMMARY OF CHAPTER 7..................................................................................................................123
CHAPTER 8................................................................................................................................................124
8.0 CONCLUSIONS AND FUTURE RESEARCH................................................................................124
8.1 SUMMARY OF KEY FINDING OF THE RESEARCH..................................................................................1248.2 CONCLUSION......................................................................................................................................1248.2 FURTHER RESEARCH..........................................................................................................................126
CHAPTER 9................................................................................................................................................128
9.0 REFERENCES AND BIBLIOGRAPHY...........................................................................................128
9.1 REFERENCES.......................................................................................................................................1289.2 BIBLIOGRAPHY...................................................................................................................................138
APPENDIX A (QUESTIONNAIRE)........................................................................................................139
APPENDIX B: META-ANALYSIS RESULTS......................................................................................145
APPENDIX C: APPROVAL PAGE.........................................................................................................147
APPENDIX D..............................................................................................................................................148
5
Lists of Tables
Table 1: Hypothesis related to Idealized influence_____________________________________________50Table 2: Hypothesis related Inspirational motivation___________________________________________50Table 3: Hypothesis related Intellectual stimulation___________________________________________51Table 4: Hypothesis related individualized consideration_______________________________________51Table 5: Hypothesis related demographic characteristics_______________________________________52Table 6: Population/ (Sampling Frame)_____________________________________________________55Table 6: Dependent variable measures______________________________________________________58Table 7: Independent variable measures____________________________________________________58Table 8: Gender________________________________________________________________________61Table 9: Age__________________________________________________________________________62Table 10: Education level________________________________________________________________63Table 11: Income level__________________________________________________________________64Table 12: Experience in the industry________________________________________________________65Table 13: Designation___________________________________________________________________66Table 14: Idealized influence_____________________________________________________________66Table 15: Inspirational Motivation_________________________________________________________67Table 16: Intellectual Stimulation__________________________________________________________68Table 17: Individualized Consideration_____________________________________________________69Table 18: supervision___________________________________________________________________70Table 19: Salary_______________________________________________________________________71Table 20: work condition_________________________________________________________________72Table 21: Achievement and Career opportunities______________________________________________73Table 21: Overall leadership style_________________________________________________________75Table 22: Overall Job-satisfaction_________________________________________________________76Table 23: Manager’s Gender_____________________________________________________________77Table 24: Manager’s Age________________________________________________________________78Table 25: Manager’s Education level_______________________________________________________78Table 26: Manager’s Experience Level_____________________________________________________79Table 27: Manager’s Income level_________________________________________________________80Table 28: Reliability Analysis_____________________________________________________________81Table 29: Hypotheses 1__________________________________________________________________82Table 30: Hypotheses 2__________________________________________________________________83Table 31: Hypotheses 3__________________________________________________________________83Table 32: Hypotheses 4__________________________________________________________________84Table 33: Hypotheses 5__________________________________________________________________84Table34: Hypotheses 6__________________________________________________________________85Table35: Hypotheses 7__________________________________________________________________85Table 36: Hypotheses 8__________________________________________________________________86Table 37: Hypotheses 9__________________________________________________________________86Table 38: Hypotheses 10_________________________________________________________________87Table 39: Hypotheses 11_________________________________________________________________87Table 40: Hypotheses 12_________________________________________________________________88Table 41: Hypotheses 13_________________________________________________________________88Table 42: Hypotheses 14_________________________________________________________________89Table 43: Hypotheses 15_________________________________________________________________89Table 44: Hypotheses 16_________________________________________________________________90Table 45: Hypotheses 17_________________________________________________________________90Table 46: Hypotheses 18_________________________________________________________________91Table 47: Hypotheses 19_________________________________________________________________91
6
Table 48: Hypotheses 20_________________________________________________________________92Table 49: Hypotheses 21_________________________________________________________________92Table 50: Hypotheses 22_________________________________________________________________93Table 51: Hypotheses 23_________________________________________________________________93Table 52: Hypotheses 24_________________________________________________________________94Table 53: Hypotheses 25_________________________________________________________________94Table 54: Hypotheses 26_________________________________________________________________95Table 55: summary of tested Hypotheses____________________________________________________95Table 56: Model summary for Leadership styles and Supervision.________________________________99Table 57: Coefficients for Leadership styles and Supervision.____________________________________99Table 58: Excluded for Leadership styles and Supervision_____________________________________100Table 59: Model summary for Leadership styles and salary____________________________________100Table 60: Coefficients for Leadership styles and salary________________________________________101Table 61: Excluded variables for Leadership styles and salary__________________________________101Table 62: Model Summary for Leadership styles and work condition_____________________________102Table 63: Coefficients for Leadership styles and work condition_________________________________102Table 64: Excluded Variables for Leadership styles and work condition___________________________103Table 65: Model Summary for Leadership styles and career development_________________________104Table 66: coefficients for Leadership styles and career development_____________________________104Table 67: Excluded variables for Leadership styles and career development_______________________105Table 68: Model summary for Leadership styles and overall Job-satisfaction______________________106Table 69: Coefficients for Leadership styles and overall Job-satisfaction__________________________106Table 70: Coefficients for Leadership styles and overall Job-satisfaction__________________________107Table 57: Public and private banks Leadership styles_________________________________________118Table 57: Hypothesis 1_________________________________________________________________157Table 58:Hypothesis 2__________________________________________________________________157Table 59:Hypothesis 3__________________________________________________________________158Table 60: Hypothesis 4_________________________________________________________________158Table 60: Hypothesis 5_________________________________________________________________159Table 61:Hypothesis 6__________________________________________________________________159Table 62: Hypothesis 7_________________________________________________________________160Table 63: Hypothesis 8_________________________________________________________________160Table 64: Hypothesis 9_________________________________________________________________161Table 65: Hypothesis 10________________________________________________________________161Table 66: Hypothesis 11________________________________________________________________162Table 67: Hypothesis 12________________________________________________________________163Table 68: Hypothesis 13________________________________________________________________163Table 69: Hypothesis 14________________________________________________________________164Table 70: Hypothesis 15________________________________________________________________164Table 71: Hypothesis 16________________________________________________________________165Table 72: Hypothesis 17________________________________________________________________165Table 73: Hypothesis 18________________________________________________________________166Table 74: Hypothesis 19________________________________________________________________166Table 75: Hypothesis 20________________________________________________________________167Table 76: Hypothesis 21________________________________________________________________167Table 77: Hypothesis 22________________________________________________________________167Table 78: Hypothesis 23________________________________________________________________167Table 79: Hypothesis 24________________________________________________________________168Table 80: Hypothesis 25________________________________________________________________168Table 81: Multiple Regression 1__________________________________________________________169Table 82: Multiple Regressions 2_________________________________________________________169Table 83: Multiple Regression 3__________________________________________________________170
7
Lists of Figures
Figure 1: Transformational Leadership Behaviors____________________________________________29Figure 2: Gender_______________________________________________________________________62Figure 3: Age__________________________________________________________________________62Figure 4: Education level________________________________________________________________63Figure 5: Income level___________________________________________________________________64Figure 6: Experience in the industry________________________________________________________65Figure 7: Designation___________________________________________________________________66Figure 8: Idealized Influence_____________________________________________________________67Figure 9: Inspirational Motivation_________________________________________________________68Figure 10: Intellectual Stimulation_________________________________________________________69Figure 11: Individualized Consideration____________________________________________________70Figure 12: Supervision__________________________________________________________________71Figure 13: Salary______________________________________________________________________72Figure 14: Work condition_______________________________________________________________73Figure 15: Career opportunities___________________________________________________________74Figure 16: Overall Leadership style________________________________________________________75Figure 17: Overall Job-satisfaction________________________________________________________76Figure 18: Manager’s Gender____________________________________________________________77Figure 19: Manager’s Age_______________________________________________________________78Figure 19: Manager’s Educational level____________________________________________________79Figure 20: Manager’s Experience level_____________________________________________________80Figure 21: Manager’s Income level________________________________________________________80Figure 22: Idealized Influence competitive comparison________________________________________115Figure 23: Inspirational Motivation competitive comparison___________________________________115Figure 24: Intellectual Stimulation competitive comparison____________________________________116Figure 25: Individualized consideration competitive comparison________________________________116Figure 26: Overall Job-satisfaction competitive comparison____________________________________117
8
ABSTRACT
The banking service industry in Sri Lanka is at a high growth stage. The market is
growing steadily at 10-20 percent annually and is exceeding the number of banking.
Competition/rivalry is intense and mostly concentrated in the Western province.
Throughout the years leadership styles of the banks has come into question and
demanded attention.
The purpose of this study was to examine the effects of leadership styles on subordinates’
job-satisfaction of a sample from the Sri Lankan service industry’s Banking sector.
Through this study the Performance of the Sri Lankan Banking Industry would be
measured in terms of Job Satisfaction as measures. Further the current position of the
adoption of Leadership styles in the Sri Lankan Banking Industry would be measured as
perceived by employees. Further this study is conducted in order to understand the
mindset of the subordinates and how leadership styles affect them. Also this study makes
a contribution to the literature by producing new empirical evidence to bear on the effects
of transformational leadership styles on a subordinate’s job-satisfaction in the Sri Lankan
Banking Industry.
As mentioned before one of the main purpose of this study was to examine the
relationship between leadership styles of bank managers and job satisfaction of
subordinates in bank settings in Colombo and grater Colombo Area. 450 questionnaires
were distributed and 86 percent (388) of the questionnaires were retrieved. The
Multifactor Leadership Questionnaire (MLQ) was used to measure leadership style of
Bank managers as perceived by subordinates. Questionnaire was used to measure job
satisfaction of subordinates.
9
A positive, moderate correlation was found between Job satisfaction of subordinates and
Transformational leadership of bank manager’s (Beta= 0.647, R square= 0.418, P=
0.000). And no significant relationship was identified between manager’s demographic
variables and Subordinates Job-satisfaction. The findings supported a positive
relationship between transformational leadership styles and subordinates job satisfaction.
ACKNOWLEDGEMENT
First of all I would like to thank Almighty Allah without whom anything would be
possible also I would like to thank my parents for their support and encouragement.
I would like to extend my deepest gratitude to Mrs. Kanchanie Jayawardena my
supervisor and Dr. Kennedy my assessor of for both of their help, insight, advice and
direction.
The knowledge that I gathered through this study would surely hold me in a good stead
for the future in the industry and for future research.
Also further I would like to thank the staff and my colleagues both senior and junior at
APIIT for the facilities and information provided and support given to me upon
completion of this project.
10
CHAPTER 1
1.0 INTRODUCTION
1.1 Introductions to research
1.1.1 Introduction to Transformational leadership styles
Leadership can be defined as the ability to influence people towards the accomplishment
of goals leadership involves vision, motivation, setting a direction and inspiring people.
Many companies start with a strong leadership but eventually fail because leaders lack
managerial skills. It is a fact that some men process an inbred superiority, which gives
them a dominating influence over their contemporaries and marks them out unmistakably
for leadership. The Essen of leadership is the follower ship with out follower ship there is
no leadership. Therefore the key for a successful leadership lies to develop and maintain
a good follower ship.
11
Today in Sri Lanka many organizations are adapting some kind of transformational
leadership style which helps them achieve their goal and maintain relationship with their
employees. And the companies in the one industry are adapting different kind of
transformational leadership styles which suits their organization culture.
Management should always keep in mind that leadership plays an important role in the
success and failure of the company. The leader may have a vision but the hard part is to
inspire the followers or employees to make it happen. A good leadership process both
clear vision and ability to inspire others.
As discussed above we can see that information regarding impact the transformational
leadership behaviours on employee Job Satisfaction is very important to the success of
every company.
1.1.2 Introduction to Job-satisfaction
According to Michael Armstrong (2003) the term ‘Job Satisfaction’ refers to the attitudes
and feelings people have about their work. Positive and favorable attitudes towards the
job indicate job satisfaction. Negative and unfavorable attitudes towards the job indicate
job dissatisfaction.
Subordinates Job-satisfaction is a complex and multidimensional concept. Thus research
on Subordinates Job-satisfaction highlights the fact that a company’s people are the key
to long-term success and competitive advantage. Recent best-selling books by Harvard
and Stanford University professors and the Gallup organization have repeatedly proven
direct, statistical links between sustained Subordinates Job-satisfaction and a consistent
“people-orientation” by management is a key to organizational success.
Situational theories assume that the interaction of variables such as task characteristics,
Organizational characteristics and leadership characteristics influences job satisfaction
(Hoy and Miskel, 1996).
12
Job satisfaction has been defined as a positive emotional state resulting from the pleasure
a worker derives from the job (Locke, 1976; Spector, 1997) and as the affective and
cognitive attitudes held by an employee about various aspects of their work (Kalleberg,
1977; Mercer, 1997; Wright and Cropanzano, 1997; Wong et al., 1998); the later
implying that satisfaction is related to the component facets rather than the whole job,
which is consistent with Spector’s (1997) view.
Thus firm Job-satisfaction is achieve through leadership which alien the resources,
knowledge and vision to create competitive advantage by responding with unique
capabilities to environmental changes. This is an alignment of firm strengths with
external opportunities.
1.1.3 Introduction to the Sri Lankan Commercial Banking Industry
The commercial banking sector of Sri Lanka continued to grow during
2005/2006 reflecting the recovery in the economy. Although activity in
both the domestic banking units (DBUs) and the foreign currency
banking units (FCBUs) grew in 2005/2006, the growth in activity of
domestic banking units was much higher. In contrast to the slow
growth in 2003/04, both deposits and advances of commercial banks
grew substantially in 2004.
The total number of commercial banks operating in Sri Lanka declined
from 23 at end December 2002 to 22 at end December 2005 with the
absorption of the branch of one foreign bank by another foreign bank
during the year. Accordingly, the number of foreign banks declined to
11, while the number of domestic banks remained at 11 at end
December 2005. Both the interest and non-interest income of
13
commercial banks continued to increase during the year. This resulted
from the improvement in banking activity noted above, as well as the
increase in the interest rate margin of banks with a reduction in
deposit rates at a faster rate than the reduction in lending rates.
Accordingly, profits of the commercial banks increased by about 31 per
cent in 2005, in comparison to the increase in profit of 60 per cent in
2004.
During the year 2005, the number of Licensed Commercial Banks operating in the
country remained unchanged at 22, while the branch network and other service outlets
expanded from 1,817 at end 2003 to 1,890 by end 2005. The banking density, defined as
the number of bank branches per hundred thousand persons in the population, improved
from 6.9 in 2003 to 7.1 in 2004. The total number of automated teller machines (ATMs)
operated by Licensed Commercial Banks increased to 810 from 710 at end 2005, while
the number of electronic fund transfer facilities at the point of sale (EFTPOS) increased
to 6,542 from 4,794 during the same period. The expansion in commercial banking
operations was reflected in significant increases in deposits, loans and advances as well
as an expansion in banking services.
(Central Bank Annual Report 2005/2006)
1.2 Problem Background
Leadership is a very important part of the company and a key factor in accomplishing the
goals identified in the planning process is structuring the work of the organization
properly. Leaders are the frame work in which the organization defines how tasks are
divided, resources are deployed and departments are coordinated.
It is now commonly accepted that employees constitute an important source of
competitive advantage for firms (Barney, 1991; Pfeiffer, 1994). As a result, it is
important for an organization to adopt leadership behaviours that is accepted by its
14
employees and which makes them satisfied in their Jobs. The above realization has led to
increased interest in the impact of Leadership Behaviours on Employee Job Satisfaction.
Over the past decade a number of studies have reported a positive relationship between
Transformational leadership behaviours and high Job Satisfaction and organizational
performance. Thus more recently attention has focused on the ability of leadership and its
impact on employee satisfaction in particular to create a source of sustained competitive
advantage in the ever changing environment.
Often it is argued that, given the importance of the management/employee interaction to
the service encounter, leadership has a key role to play in securing high levels of
employee satisfaction.
A rapidly changing business environment, featuring a tight labor market, changing
customer demands, and increasing competition, has been a challenge for many of today's
Banks. Moreover, rapidly changing technologies make it easier to share information and
to replicate competitors’ strategies and work practices. Therefore the only thing that can
separate competitors make a difference is the role played by leader.
As discussed above we can see that information regarding transformational leadership
styles and employee satisfaction is very important to the success of every company.
There are some researches done on transformational leadership behaviours and how it
impacts on Job-Satisfaction. But little or none has been done on relationship between
Transformational leadership behaviours and subordinates satisfaction in Sri Lankan
banking sector context.
1.3 Research Issues
As discussed previously in the background the Study of transformational leadership
styles and subordinates Job-satisfaction has been conducted many a time. Hence the
purpose of this study is to identify whether the same applies to the Sri Lankan context
15
especially in the Banking industry. Thus the main issue is whether Leadership styles of
managers have significantly influences Job-satisfaction of subordinates in the Sri Lankan
Commercial Banking Industry.
Also various types of transformational leadership styles are to be related to subordinates
Job-satisfaction in order to identify the practices that actually lead the company to
successful or sustainable performance.
Therefore considering issues discussed above the following problem was identified and
to continue the research on. The research problem would be “An empirical study on the
Impacts of selected Transformational leadership behaviours of bank managers on Job
satisfaction among bank subordinates”
1.4 Objectives of the study
The objectives of this study are given below:
To identify existing characteristics of Transformational leadership behaviours
among managers in commercial banks in Sri Lanka.
To identify the relationship between selected characteristics of Transformational
leadership behaviours and dimensions of Job Satisfaction among bank
subordinates.
16
To identify most important characteristics of Transformational leadership
behaviours which influence the job satisfaction of bank subordinates.
To identify which demographic characteristics of Bank managers influence Job
Satisfaction among Bank subordinates.
To compare selected Transformational leadership behaviours practiced by
managers in private and public commercial banks.
1.5 Significance of this study
This study would be important to various organizations, individuals and Leaders. It
contributes towards the society and the service industry organizations and in particular to
Commercial banks in Sri Lanka, etc. The significance of this study is explained in detail
below:
1.5.1 Theoretical Significance
17
This study will be contributing to a lot to Sri Lankan companies as well as researchers
and other individuals. Not much has been researched on this field in the Sri Lankan
context therefore the information will be very useful when considering which
transformational leadership behaviours are practiced in Sri Lanka companies.
This study will help to interpret the impact of the transformational leadership behaviours
on the subordinates Job Satisfaction in commercial banks in Colombo district.
1.5.2 Social Significance
The study will help understand which transformational leadership style is more preferred
by subordinates and which are least preferred by them and the reasons for it and how they
feel about the transformational leadership style of the company affects their livelihood
and Job Satisfaction. And which leadership behaviours motivate the subordinates to
perform well and which leadership behaviours make them resists and de-motivates.
1.5.3 Organizational Significance
Organizations will be able to understand their weaknesses and where they lack and will
therefore be able to make necessary modifications to their leadership behaviours which
will increase the subordinates’ satisfaction in their work. And maintaining a good
relationship between leadership and employees will be able to achieve a competitive
advantage over their rivals.
The research will help companies to identity how transformational leadership behaviours
of managers has an impact on the subordinates Job satisfaction. And according to
research findings the companies can identify which leadership behaviours are increasing
the satisfaction levels of subordinates and adopt that particular behaviours this would lead
to higher satisfaction and performance, and increase the loyalty of the subordinates and
make them stay with them rather than switching to their competitor in the industry.
18
1.6 Limitations of the Study
While likert scale are popular in marketing research they also have weakness and
multi-item scales tested in the same instrument may produce overstated
correlations.
The literature on leadership behaviours and its impact on subordinates’ job
satisfaction in banking sector in Sri Lanka are not available, so the literature
related to the topic are taken from other countries.
According to past research in the banking sector of Sri Lanka the response rate in
the banking sector to the questionnaire is modest. This is because of the nature of
the industry and the work load of each bank.
The accuracy of the data cannot be 100% guaranteed. This is because from the
sample taken most of these people would not be giving their true opinion or
would not be in the correct state of mind when answering the questionnaire.
1.6.1 De-Limitations
There are 22 commercial banks in Sri Lanka but to narrow down the research the
sample would be limited to 10 commercial bank in that private banks and public
banks would include. The study would be conducted taking in to consideration a
sample from the Colombo area only. This is due to the constraint of time.
Therefore the scope of the study would be limited to the Colombo district
Commercial banks.
The research would mainly focus on Transformational leadership behaviours of
managers not considering other leadership styles or behaviours.
The time period given for the proposal is limited to only 4 months within which
all the work had to be done.The time period of gathering data is limited to two
months.
1.6.2 Sample size
19
As Sri Lanka has many commercial banks in operation and it would be impossible to
conduct the research on every bank a selected standard of 22 banks have been chosen in
this research. These 22 banks are licensed by the Central bank of Sri Lanka these banks
include 11 domestic banks and 11 foreign banks. But to carry out this research the
sample was consisted of all Commercial Banks operating in Sri Lanka that are listed by
the Central Bank of Sri Lanka and in this two government and eight private Banks were
selected. Thus the sample size would consist minimum of 384 respondents.
1.6.3 Variables
The variables used for this study are all taken from previous researches. In this Study
Job-satisfaction is measured by the use of four variables which are pay, career
development, work condition and supervisors. Further these variables are measured
through the perceptions of the employees in the banks. Thus to increase accuracy of the
study these responses were cross checked against actual figures of financial performance
of the banks and the mismatch’s were not included.
1.6.3 Feed back
As this study was conducted using the Deductive approach the need to use questionnaires
in order to measure the variables in the conceptual framework arises. Hence the primary
data gathered would be through this method. Thus it is important to realize the fact that
all the responses could depend on the respondents’ capacity and frame of mind at the
time. Thus the accuracy of the data to be gathered may not be entirely accurate, resulting
in a somewhat low feedback.
1.6.4 Time
20
As time is always an impossible constraint to overcome, this study too may definitely be
limited to this factor. This can effect on this study in two ways:
1. Respondents could take a long time to complete and fill in the
questionnaire. This would delay the time of data collection.
2. The study is restricted to a time period of approximately 5 months after
the approval of the project proposal. This would further make it difficult
to complete the study provided that data collection is delayed.
1.7 Summary of Chapter 1
The above chapter looked at the introduction to the study. It includes a background study
of the Banking industry along with a background of the problem. The chapter also deals
with an introduction to leadership styles and how organizations could compete through
leadership. Research objectives, scope and limitations of the study are some of the other
areas considered in this chapter.
CHAPTER 2
2.0 LITERATURE REVIEW
2.1 Introduction
21
This chapter presents an insight about the selected variables and about the relationships
of both independent and dependent variables. The chapter will begin with the variables
details and then would be followed by the relationships of the independent and dependant
variables. Further this chapter summarizes all the relevant literature for the
transformational leadership styles with the selected dependent variables for subordinates
Job-satisfaction.
For the last decade, researchers have emphasized the effects of leadership styles on
subordinates Job-satisfaction (Northouse (2001); Ogshahemi (2001); Bass 1990, Bryman,
1992, howell & Avolio, 1992). They have argued for “ best leadership style” from their
research findings they have identified that employees or subordinates are more satisfied
with their leaders who shows transformational leadership characteristics, therefore all
organizations were encouraged to adopt these practices (Delery and Doty, 1996). The
adoption of best practices has resulted in higher satisfaction rates, lower turnovers and
increase teamwork with in the organization.
A number of academic researchers have investigated the impact of leadership styles on
subordinates Job-satisfaction. (Cutcher-Gershenfeld, 1991; Delaney and Huselid, 1996;
Ichniowski et al., 1995; Terpstra and Rozell, 1993).
2.2 Leadership and Leadership styles
Leadership is an adaptive, goal-seeking process, for it organizes and motivates group
members’ attempts to attain personal and group goals (Katz & Kahn, 1978).There are
several individual leaders who consider the leadership style they adopt in the organization
and its impact on employee behaviours.
According to Burns, 1978, Hollander & Julian, 1969, Pigors, 1935, Leadership is a
transactional process. The leader/member relationship is a form of social exchange;
leaders and group members trade their time and energy in exchange for valued monetary
and social rewards (Leadership is often a transformational process). And according to
22
Bass, 1985, a transformational leader increases group members’ motivation, confidence
and satisfaction by uniting members and changing their beliefs, values and needs.
The leadership styles of any organization would encompass the attributes listed below
(John and Bass 1985)
1. Transformational Leadership
Charisma: “the leader instills pride, faith, and respects, has a gift for seeing what
is really important, and transmits a sense of mission”.
Individual consideration: “the leader delegates projects to stimulate learning
experience, provides coaching and teaching, treats each follower as an individual”
Intellectual stimulation: “the leader arouses followers to think in new ways and
emphasizes problem soloing and the use of reasoning before taking action”
2. Transactional Leadership
Contingent rewards: “ the leader provides rewards if followers perform in
accordance with contract with contracts or expend the necessary effort”
Management- by- expectation: “the leader avoids giving directions if the old
ways are working and allows followers to continue doing their jobs as always if
performance goals are met”
3. Laissez-faire leadership
2.2.1 Transformational leadership
The ideas of transformational and transactional leaderships were first introduced by
Burns (1978) and later developed by Bass (1985).
Bass defines “transformational supervision in terms of the leader’s motivational effect on
followers. They feel loyalty, trust, admiration and respect toward the transformational
leader”. The followers are motivated to serve and achieve more than they were originally
expected to. They are inspired to achieve higher-order needs and are made more aware of
the organization’s needs for their unique skills and talents.
Transformational leadership has been found effective and acceptable in studies from a
23
large number of different countries and Bass (1997) Transformational leadership
increases the confidence and motivation of followers to obtain performance beyond
expectations (Bass, 1985)
2.2.2 Transactional leadership
This is based “on a series of exchange between leader and followers” (Bass, 1985).
Transactional leaders’ clarity follower’s role and what must be done to obtain designated
outcomes. Behaviours and traits of followers are influenced by incentives (rewards)
offered by the leader.
Male leaders were generally more likely to manifest the other aspects of transactional
leadership (active and passive management by exception) according to the research
carried out by Bass (1985)
Transactional leadership is described as a series of exchange and bargains between
leaders and followers. Burns (1978) was the first scholar to distinguish between
transactional leaders, those who attempt to satisfy the current needs of their followers by
focusing attention on exchange. According to Bass (1985), transactional leadership is
postulated to result in followers achieving a negotiated level of performance
2.2.3 Laissez-faire leadership
The laissez-faire leader is essentially a non-leader. This type of manager tends to with
draw from the leadership role and offers little in terms of either direction or support.
“They are often’ absent’ or indifferent to the needs of their followers” (Paul Kirkbride,
1999). As are result followers are often in conflict With each other regarding roles and
responsibilities, try to usurp the leader’s role, or seek Direction and vision from else
where in the organization. Key indicators of this style would be
Avoids making decisions;
Abdicates responsibilities;
24
Refuses to takes side in a dispute; and
Shows lack of interest in what is going on.
Bass (1990) explains about the laissez-faire leadership “behaviors that represent a “do
nothing” or “hands-off” approach. Such behaviors include staying away from employees,
shirking supervisory duties, and being “inactive, rather than reactive or proactive”
(Bass, 1990) uses the following statement to differentiate laissez-faire leadership from
other types of leadership behaviors and styles: “Laissez-faire leadership should not be
confused with democratic, relations- oriented, participative, or considerate leadership
behavior. Nor should it be confused with delegation or management by exception.
Delegation implies the leader’s active direction of a subordinate to take responsibility for
some role or task. The active delegative leader remains concerned and will follow up to
see if the role has been enacted or the task has been successfully completed. The leader
who practices management by exception allows the subordinate to continue on paths that
the subordinate and the leader agreed on until problems arise or standards are not met, at
which time the leader intervenes to make corrections”.
Laissez-faire leadership inspires followers to exceed their own self-interest for the good
of the organization (Bass, 1990).
2.3 Previous research findings or Empirical evidence
Results from several studies indicate that there is a relationship between perceived
leadership style and the job satisfaction of subordinates. Chiok Foong Loke, (2001) found
that leadership behaviours explained 29% of job satisfaction and Lucas (1991) that
leadership style perceptions predicted 36,6% of the variance in job satisfaction scores
among nurses.
Several studies have shown that transformational leadership correlates positively with
high job satisfaction among subordinates (Medley & Larochelle, 1995, Dunham-Taylor,
25
2000, Shieh, 2001). Shieh, (2001) also found Contingent Reward(pay/salary) Leadership
styles to positively predict job satisfaction.
Results from a study conducted by Morrison (1997) indicate that both transformational
and transactional leadership styles are positively related to job satisfaction. Pollock,
(1998) presents a result in accordance with this and puts emphasis on the inspirational
motivation leadership behaviours as being especially important for subordinates’ job
satisfaction.
The driver analysis, based on individual survey responses from 8,256 employees,
supports the key finding that the local work unit manager (leadership style) is absolutely
critical in creating a respectful and empowering work unit environment, which drives
employee satisfaction/commitment. (Morrison (1997)
Schultz, Greenly & Brown, (1995) found both transformational and transactional leader-
ship styles to be antecedents to a favorable work environment and less burnout.
Northouse (2001) states that in 39 studies of transformational literature, individuals who
exhibited transformational leadership were more effective leaders with better work
outcomes. This was true for both high- and low-level leaders in the public and private
sectors (Northouse, 2001). Therefore, it can be very advantageous for managers to apply
the transformational approach in the workplace. (Paul Kirkbride, 1999)
A large amount of empirical research support the notion that both a purely relationship
oriented leadership and a so-called combined style have positive effects on job
satisfaction among subordinates and in most cases also lead to a higher productivity
(Bass, 1981). Larsson (1999) argues that a common result from research on these two
dimensions is that consideration is necessary, but not enough for a successful leadership.
Bass, Burger, Doktor & Barrett, (1979) found that managers from twelve culturally
diverse countries expressed a desire to get work done while using less authority. Smith
26
and Peterson, (1994) found that managers in twenty-five countries reported satisfaction
with events for which they were delegated substantial discretion. Transformational
leadership has been found effective and acceptable in studies from a large number of
different countries and Bass (1997) asserts that three components of 13.
Bass,(1997) identified that Transformational leadership styles has significant relationship
between on job satisfaction among subordinates and the effectiveness of the organization.
Bratt, (2000) present results indicating that job stress and nursing leadership are the most
influential variables in the explanation of job satisfaction among nurses.
Sorrentino, (1992) found significant correlations between nurse managers behaviours and
job satisfaction in subordinates as well as a moderating effect of leadership on job anxiety
and support perceived by nurses.
Ogshahemi, (2001) found that approximately half 52.4% of university teachers are
satisfied with the behaviours of their line managers while about 34.4% are dissatisfied
through regression analysis he found that age and length of service in higher education
were important in explaining an academic’s satisfaction or dissatisfaction with the
behaviours of their line managers., (Roseline 2004)
Evans, John in a study in 2005 identified that both transformational and transactional
leadership styles of bank managers/supervisors on employees' satisfaction. Data was
collected from employees working in national and international banks operating in the
UAE. A regression analysis indicated that transformational leadership style was related to
subordinates job satisfaction. On the other hand, transformational leadership, Idealized
influence, Inspirational Motivation, Intellectual Stimulation and Individualized were all
related to Subordinates Job-satisfaction. Results confirmed that to elicit higher levels of
satisfaction and performance among bank employees, managers/supervisors need to
demonstrate transformational leadership attributes (Evans, 2005)
27
A research conducted by the Bass found out that transformational, transactional, and
laissez- faire leadership styles found a small difference between female and male leaders
and Female leaders were more transformational than male leaders and also engaged in
more of the contingent reward behaviors that are a component of transactional leadership.
According to Judy B. Rosener in her essay Ways Women Lead, women are more likely
to use a “transformational” leadership style and view leadership in terms of “getting
subordinates to transform their own self-interest into the interest of the group” and not
emphasizing their power over subordinates, while men are more likely to use a
“transactional” leadership style and view their “job performance and Job-satisfaction as a
series of transactions with subordinates—exchanging rewards for services rendered or
punishment for inadequate performance” and exercising “formal authority” (Oswald,
2006)
Empirical evidence has been produced whose demographic variables such as
Years in organization, age, level of education and the duration of leadership (Chen and
Francesco, 2000) can have significant impact on organizational commitment and Job
Satisfaction. In particular, those with higher positions who had been in the same job
longer and who were older had a greater level of Commitment.
Therefore we can clearly see from the above research carried out by researchers as found
out that there is a relationship between leadership styles and subordinates Job satisfaction
and especially there is a significant or positive relationship between transformational
leadership style and Job-satisfaction. And some researches have also identified
relationship between demographic variables of leader and Job-satisfaction of
subordinates.
2.4 Independent variable
2.4.1 Transformational leadership
The ideas of transformational and transactional leaderships were first introduced by
28
Burns (1978) and later developed by Bass (1985).
Bass defines “transformational supervision in terms of the leader’s motivational effect on
followers. They feel loyalty, trust, admiration and respect toward the transformational
leader”. The followers are motivated to serve and achieve more than they were originally
expected to. They are inspired to achieve higher-order needs and are made more aware of
the organization’s needs for their unique skills and talents.
Transformational leadership has been found effective and acceptable in studies from a
large number of different countries and Bass (1997); Transformational leadership
increases the confidence and motivation of followers to obtain performance beyond
expectations (Bass, 1985)
Transformational leadership according to Burns (1978) is able to ensure that followers
are consciously aware of the importance of sharing organizational goals and values. They
also find ways to ensure that transformational leaders motivate their followers to go
beyond their own self- interest and give effort on behalf of the organization by appealing
to the higher order needs of followers. (Roseline 2004)
A transformational leader provides intellectual stimulation to employees by encouraging
them to try out new approaches for solving problems (Bass 1985) they challenge the
status quo and encourage employees to explore new ways of achieving organizational
goals and objectives subordinates under such leadership are not hesitant to offer their
ideas, become critical in their problems solving and tend to have enhanced through
processes. (Roseline 2004)
In addition transformational leaders have the ability to motivate their subordinates to
commit themselves to performance beyond expectation (Bass 1990, Bryman, 1992,
Howell & Avolio, 1992) &(Roseline 2004)
Leaders demonstrating idealized influence or charisma have a vision strong influence and
29
a sense of mission (Bass, 1990m Bass and Avolio) & (Roseline 2004)
Ogshahemi (2001) found that approximately half 52.4% of university teachers are
satisfied with the behaviours of their line managers while about 34.4% are dissatisfied
through regression analysis he found that age and length of service in higher education
were important in explaining an academic’s satisfaction or dissatisfaction with the
behaviours of their line managers., (Roseline 2004)
There are four factors to transformational leadership, (also known as the "four I's"):
idealized influence, inspirational motivation, intellectual stimulation, and individual
consideration. Each factor will be discussed to help managers use this approach in the
workplace.
Idealized influence or Charisma: “the leader instills pride, faith, and respects, has
a gift for seeing what is really important, and transmits a sense of mission
describes managers who are exemplary role models for associates. Managers with
idealized influence can be trusted and respected by associates to make good
decisions for the organization.
Inspirational motivation describes managers who motivate associates to commit
to the vision of the organization. Managers with inspirational motivation
encourage team spirit to reach goals of increased revenue and market growth for
the organization.
Intellectual Stimulation describes managers who encourage innovation and
creativity through challenging the normal beliefs or views of a group. Managers
with intellectual stimulation promote critical thinking and problem solving to
make the organization better.
Individual consideration describes managers who act as coaches and advisors to
the associates. Managers with individual consideration encourage associates to
reach goals that help both the associates and the organization.
Each of the four components describes characteristics that are valuable to the
"transformation" process. When managers are strong role models, encouragers,
30
innovators, and coaches, they are utilizing the "four I's" to help "transform" their
associates into better, more productive and successful individuals.
2.4.2 Characteristics of Transformational leadership behaviours
Figure 1: Transformational Leadership Behaviours
Source: By Titus Oshagbemi
According to above table developed by Titus Oshagbemi through research has developed
a model which clearly state which leadership styles are increasing performance among
employees/subordinates and the same model could be used to job-satisfaction as well.
2.4.2.1 Idealized influence
Transformational leaders behave in ways that result in their being a role model for their
followers. The leaders are admired; respected, and trusted, followers identify with leaders
and want to emulate them. Among the things the leader does not earn this credit is
considering the need of others over his or her own personal needs. The leader shares risk
with followers and is consistent rather than arbitrary. He or she can be conduct on to do
the right thing, demonstrating high standards of ethical and moral conduct. He or she
avoids using power for personal gain and only when needed. (Timothy & Bruce 1994)
31
The final transformational style refers to the leader who has become an idealized
influence (II) or ‘‘role model’’ for those around them. Such leaders are regarded as a role
model either because they exhibit certain personal characteristics or ‘‘charisma’’ or
because they demonstrate certain moral behaviours. Such leaders are often seen as being
high on morality, trust, integrity, honesty and purpose. Key indicators of this style would
be:
has demonstrated unusual competence;
celebrates followers’ achievements;
addresses crises ‘‘head on’’; and
Uses power for positive gain.
‘‘The final transformational style refers to the leader who has become an idealized
influence (II) or ‘role model’ for those around them. Such leaders are regarded as a role
model either because they exhibit certain personal characteristics or ‘charisma’ or
because they demonstrate certain moral behaviors.” (Paul Kirkbride, 1999)
As previously mentioned, cohesion is critical for effective team performance (Swezey
and Salas, 1992; Weaver, 1997), and as such, is a key area that could be addressed when
investigating transformational leadership's potential relationship with team performance.
Transformational leadership has been empirically linked to cohesion in the past.
Specifically, Carless, (1995) found that cohesion mediated a transformational leadership
relationship with financial performance of Australian banks
Scholars have examined visioning behavior and team/group factors in the past. Within
charismatic leadership theory, Shamir, (1993) represented vision as empathetic language
that involves the reinforcement of the group's collective identity. Similarly, Sullivan
(1988) suggested that visioning involves expressions of sharing as well, which are
directed at building rapport and bonding with the team.
A leader, who promotes confidence in achievement and execution of goals and tasks,
speaks optimistically about the future and provides an exciting image of organizational
32
change, exhibits idealized, inspirationally motivating behaviors (Bass and Avolio, 1994).
Moreover, these behaviors may be instrumental in building pride in being associated with
the leader (Atwater and Bass, 1994), and commitment to the leader (Arnold, 2001),
which can in turn, provide a commonality for members of the team to embrace. This
shared pride and commitment to the leader has the potential to lead to increased cohesion,
as members view themselves as privileged to be associated with the transformational
leader (Atwater and Bass, 1994). Thus, we suggest that idealized influence/inspirational
motivation impacts cohesion through commitment to the leader.
Others have found that transformational leadership helps to augment organizational
commitment and Job-satisfaction. (Dubinsky, Yammario, & Spangler, 1995) Perhaps
most noteworthy are studies focusing on the consequences of charismatic leadership or
idealized influence p, especially the high level of commitment on the part of the leader
and the followers to a common vision, mission, or transcendent goal. (Bennis & Nannus,
1985; House, Spangler, & Woyke, 1991; Savery, 1991) Researchers have found that the
charismatic leader behaves in such a manner as to create an appealing ideological goal to
which subordinates become more satisfied and committed through their trust and respect
for the leader. (Bass, 1985; House, 1977)
Researchers from the University of Pittsburgh and Emory University studied the
performance of 250 U.S. Chief Executive Officers. They found a significant and positive
relationship between the CEO’s display of charisma (idealized influence) and their firm’s
performance in increased sales, changes in market share, increased earnings and return on
investment compared to their firm’s competitors. (Joseph, 2006)
Ho1: There is a relationship between Idealized influence and supervisionHo2: There is a relationship between Idealized influence and Pay of subordinatesHo3: There is a relationship between Idealized influence and working conditions.Ho4: There is a relationship between Idealized influence and career opportunities Ho5: Idealized influence correlates positively with Job Satisfaction
2.4.2.2 Inspirational motivation
33
Transformational leaders behave in ways that motivate and inspire those around them by
providing meaning and challenge to their followers’ work. Team sprit is aroused,
enthusiasm and optimism are displayed. The leader gets followers involved in
envisioning attractive future states. The leader creates clearly communicated expectations
that followers want to meet and also demonstrates commitment to goals and shared
vision. (Timothy & Bruce, 1994)
The inspirationally motivating (IM) leader has the ability to motivate the followers to
superior performance. Such leaders tend to be able to articulate, in an exciting and
compelling manner, a vision of the future that the followers are able to accept and strive
towards. Such leaders can also often succeed in elevating the expectations of followers so
that they achieve more then they, or others, thought they could do. Key indicators of this
style would be:
presents an optimistic and attainable view of the future;
moulds expectations and shapes meaning;
reduces complex matters to key issues using simple language; and
Create a sense of priorities and purpose.
‘‘The inspirationally motivating (IM) leader has the ability to motivate the followers to
superior performance. Such leaders tend to be able to articulate, in an exciting and
compelling manner, a vision of the future that the followers are able to accept and strive
towards. (Paul Kirkbride, 1999)
The direct reports of managers who exhibit transformational leadership behaviors are
more likely to have been mentored and developed (i.e., individualized consideration);
they report Higher quality relationships with their supervisors (Howell & Hall
Merenda,1999).Sparrow and Liden, (1997) suggested that having a high-quality exchange
relationship is “pivotal in determining the member’s fate in the organization”.
Recent empirical evidence indicates that individualized consideration is an important
leadership behaviours in the workplace (Sarros, Gray, & Densten, 2002). Bass (1985)
34
identified a developmental orientation and individualized attention to followers as
important aspects of individualized consideration.
Bass (1985) discussed individualized attention as occurring when a leader pays attention
to the differences among followers and discovers what motivates each individual. This
author proposed that individualized attention allows leaders to become familiar with
followers, enhances communication and improves information exchange.
Recently, theorists have begun to shift the focus of individualized attention from a means
to promote familiarity with followers to a means to provide support or provide
supervision. For example, Avolio and Bass (1995) stated that a 'leader displays more
frequent individualized consideration by showing general support for the efforts of
followers'. The move towards defining individualized consideration as encompassing
supportive leadership as well as developmental leadership is problematic as research
suggests that supportive leadership is unlikely to have transformational effects (e.g. Yukl,
1999).
Ho6: There is a relationship between Inspirational motivation and supervisionHo7: There is a relationship between Inspirational motivation and Pay of subordinates.Ho8: There is a relationship between Inspirational motivation and working conditionsHo9: There is a relationship between Inspirational motivation and career opportunitiesHo10: Inspirational motivation correlates positively with Job Satisfaction
2.4.2.3 Intellectual stimulation
Transformational leaders stimulate their followers’ effort to be innovative and creative by
questioning assumptions, reframing problems, and approaching old situations in new
ways, creativity is encouraged. There is no public criticism of individual members’
mistakes. New ideas and creative problems solutions are solicited from followers, who
35
are included in the process of addressing problems and finding solutions. Followers are
encouraged to try new approaches, and their ideas are not criticized because they differ
from the leaders’ ideas. (Timothy & Bruce, 1994)
Intellectual stimulation (IS) essentially involves the leader stimulating the followers to
think through issues and problems for themselves and thus to develop their own abilities.
It is a style that parents often use with their children but often is less frequent in
organizations where many managers favor a ‘‘telling’’ approach to a questioning one.
Key indicators of this style would be:
re-examines assumptions;
recognizes patterns that are difficult to imagine;
is willing to put forth or entertain seemingly foolish ideas;
encourages followers to revisit problems; and
Creates a ‘‘readiness’’ for changes in thinking.
‘‘Intellectual stimulation (IS) essentially involves the leader stimulating the followers to
think through issues and problems for themselves and thus to develop their own abilities.
It is a style that parents often use with their children but often is less frequent in
organizations where many managers favor a ‘telling’ approach (Paul Kirkbride, 1999)
Transformational dimension of intellectual stimulation can create an environment, where
questioning assumptions and inventing new uses for old processes (Bass, 1985, 1990) are
considered a healthy form of conflict. Using intellectually stimulating behavior, such as
seeking differing perspectives, suggesting new ways of how to look at problems and
encouraging non-traditional thinking, may promote functional, task-oriented conflict
within the team. A leader's use of intellectual stimulation exhibits his/her belief that when
teams promote and manage task conflict, the resulting innovation can lead to better team
performance and decision-making (Bass and Avolio, 1994).
In 1999, researchers from several major U.S. universities reviewed over 100 studies
examining leadership in a wide range of settings including small informal work groups,
units of large complex organizations, military organizations, government agencies,
36
educational institutions and U.S. presidential administrations. The findings from these
studies were “surprisingly consistent.” Leaders described as exhibiting charismatic,
Intellectual stimulation, transformational and/or visionary qualities were repeatedly found
to generate higher levels of follower commitment and to have positive impact on
organizational performance and follower job satisfaction. (Joseph, 2006)
Bass (1985) identified a number of specific developmental behaviours when defining
Intellectual stimulation, including career counseling and achievement programs, careful
observation of staff, recording followers' progress and encouraging followers to attend
technical courses. These behaviours overlap with a number of behaviours identified in the
mentoring literature to have significant relationship between subordinates Job-satisfaction
Ho11: There is a relationship between Intellectual stimulation and supervisionHo12: There is a relationship between Intellectual stimulation and Pay of subordinatesHo13: There is a relationship between Intellectual stimulation and working conditions.Ho14: There is a relationship between Intellectual stimulation and career opportunities Ho15: Intellectual stimulation correlates positively with Job Satisfaction
2.4.2.4 Individualized consideration
Transformational leaders pay special attention to each individual’s need for achievement
and growth by acting as coach or mentor; followers and colleagues are developed to
successively higher levels of potential. The individually considerate leader listens
effectively. The leader delegates tasks as a mean of developing followers. Delegated
tasks are monitored to see if the followers need additional direction or support and to
assess progress ideally followers do not feel they are being checked. (Timothy & Bruce,
1994)
As previously mentioned, increased listening, prompt feedback and openness to
suggestions within the team is necessary for Job-satisfaction (Dyer, 1995; Oser, 1989;
Stevens and Campion, 1994; Swezey and Salas, 1992; Zander, 1994).
Consider that individualized consideration encompasses attentive listening, consideration
of individuals as having different needs, abilities and aspirations, and time spent in
37
coaching and teaching (Bass, 1985, 1990). The individually considerate leader is
responsible for constructing a one-to-one relationship with each team member, listening
to concerns and addressing individual needs (Bass, 1994; Yammarino, 1998). As such,
the transformational leadership dimension of individualized consideration may be an
appropriate precursor to Job-satisfaction.
Individualized consideration (IC) is the first of the ‘‘transformational’’ styles. The IC
leader demonstrates concern for their followers, treats them as individuals, gets to know
them well and listens to both their concerns and ideas. When managers are asked to relate
the behaviors exhibited by their best leader to date the majority list some form of this
style at the top of their list. Key indicators of this style would be:
recognizes differences among people in their strengths and weaknesses, likes and
dislikes;
is an ‘‘active’’ listener;
assigns projects based on individual ability and needs;
encourages a two-way exchange of views; and
Promotes self-development.
‘‘ Individualized consideration (IC) is the first of the ‘transformational’ styles . . . When
managers are asked to relate the behaviors exhibited by their best leader to date the
majority list some form of this style at the top of their list. (Paul Kirkbride, 1999).
Although there is some empirical evidence that general transformational leadership is
indirectly related to empowerment (Kark, 2003), individualized consideration has not
been specifically linked to empowerment. Spreitzer (1995) states that competence (or
self-efficacy); meaningfulness, choice and impact are necessary conditions for
empowerment. Specifically, we posit that through individualized consideration a leader
addresses competence; meaningfulness and impact with each of his/her team members,
and encourages continued individual development. These actions may serve to create a
supportive, empowered team environment (Spreitzer, 1995).
Ho16: There is a relationship between Individualized consideration and supervision
38
Ho17: There is a relationship between Individualized consideration and Pay of subordinates.Ho18: There is a relationship between Individualized consideration and working conditions Ho19: There is a relationship between Individualized consideration and career opportunitiesHo20: Individualized consideration correlates positively with Job Satisfaction
Findings of Evans, (2005) study confirm that a transformational leadership style of bank
managers will boost employees' job satisfaction and performance (self-assessed). When
managers operationalize charisma and utilize inspiration, individualized consideration
and intellectual stimulate, they elicit positive reactions from employees. Such
transformational qualities do stimulate higher level needs of followers and result in
feelings of satisfaction. This finding is supported by other leadership researchers (e.g.,
Bass & Avolio, 1990). The attention that managers give to employees will be reflected in
their general positive attitude toward work and work conditions, which in turn, increases
job satisfaction and facilitates performance.
In designing this study, our initial position was that both leadership styles are necessary
conditions for leadership to be operationalized. Both act as components of the same
construct, and are neither exchangeable nor competing (Bass, 1985).
To maximize the satisfaction and performance levels of their followers, leaders must
possess charisma, provide individualized consideration, and be intellectually stimulating
and inspiring to followers. It is not clear if leaders must display the attributes of both
leadership styles in order to be effective.
2.4.3 Demographic characteristics of managers (Age, marital status, sex, level of education, length of time in position)
A research conducted by the Bass found out that transformational, transactional, and
laissez- faire leadership styles found a small difference between female and male leaders
and Female leaders were more transformational than male leaders and also engaged in
more of the contingent reward behaviors that are a component of transactional leadership.
39
Empirical evidence has been produced whose demographic variables such as
Years in organization, age, level of education and the duration of leadership (Chen and
Francesco, 2000) can have significant impact on organizational commitment and Job
Satisfaction. In particular, those with higher positions who had been in the same job
longer and who were older had a greater level of Commitment.
On the satisfaction with the work performance of subordinates, older managers
Appeared to be a little more satisfied with the work performance of their Subordinates in
comparison with the younger managers (Kakabadse, 1998)
Similarly, younger Managers tend to be more satisfied with their boss’s individualized
Consideration while older managers seem to prefer contingent reward. These Findings
suggest different profiles between younger and older workers in their Leadership
behavior. Furthermore, the two groups of managers have different but consistent opinions
regarding the overall contributions of their bosses’ Leadership behaviors and leadership
style to improved organizational work and performance (Kakabadse, 1998)
Ogshahemi, (2001) looked at the level of satisfaction that academics derive from the
behaviours of their managers. Managers in higher education could be a head of
department, a dean of a faculty, director of a school or unit, or the vice chancellor of the
institution. He found that approximately half (52.4%) of university teachers are satisfied
with the behaviours of their managers while about a third (34.4%) are dissatisfied.
Through regression analysis, he found that age and length of service in higher education
were important in explaining an academic’s satisfaction or dissatisfaction with the
behaviours of their managers.
Empirical evidence has been produced whose demographic variables such as years in
organization, age, level of education and the duration of leadership (Chen and Francesco,
2000; Mathieu and Zajac, 1990; Salancik, 1977) can have Significant impact on
organizational commitment and Job-satisfaction. Sommeretal,(1996)revealed that
40
position, tenure and age were significantly related to employee commitment for Korean
subjects. In particular, those with higher positions
Another reason that underscores the importance of the study of the relationship between
leadership and age is the finding by Kakabadse (1998) that age, along with other time-
related dimensions, has a powerful effect in shaping the attitudes and hence the
behaviours of senior leaders within organizations.
In their study of the Australian Commonwealth federal government, three leader profiles
emerged – the radicals, the bureaucrats and the team players. These classifications are
similar to the generational categories found in other research. The radicals were the
youngest (between 26-35 years), the team players were the oldest (56 years and over)
while the bureaucrats were in between (46-55 years). Older workers were mature, saw
Challenges and initiatives through to completion and had longer-term perspectives in
managing people and systems. On the other hand, younger employees were competitive,
results oriented, energetic, and adopted an open style of management
Kakabadse (1999) suggest that research examining age and effectiveness of overall
organizational performance is inconclusive and there are two arguments in the literature.
The first argument suggests that older leaders tend to be rigid, are less likely to be willing
to learn new ways of working, are prone to resist change and innovation and therefore
tend to be a burden to the organization. On the other hand, because of their years of
experience, older workers tend to have a maturity and wisdom that enables them to
anticipate problems and to respond to them calmly and with confidence. For these
reasons it is felt that it is important for a detailed study of the relationship between age
and leadership. In the current research we examine age influences on the leadership style
and behaviours of managers.
Hogan (2001), are critical of self-report data used in leadership research as they contend
that leadership is a social influence process and thus should be determined by the
manager’s staff/direct reports. Hogan, (2001) stated that self-reports are open to criticism
41
although they can be valid and useful in certain circumstances, when the felt need for
socially desirable responses is absent or minimal. For example, he felt that in a situation
where respondents.
A study conducted in the UAE, suggested that the leaders education has a significant
relationship with leadership behaviours, while the managers education had no significant
relationship with subordinates Job-satisfaction and leadership behaviours Darwish
Yousef 1998. Quinn, (1987) found that education has a significant relationship with
leadership behaviours and also were significant in differentiation leadership clusters of
effective and in effective managers.
2.5 Dependent variable
2.5.1 Employees Job satisfaction
According to Michael Armstrong (2003) the term ‘Job Satisfaction’ refers to the attitudes
and feelings people have about their work. Positive and favorable attitudes towards the
job indicate job satisfaction. Negative and unfavorable attitudes towards the job indicate
job dissatisfaction.
According to the findings by (Rafferty & Griffin, 2006) Job satisfaction refers to an
individual's global feeling about their job (Spector, 1997), and authors have argued that
the primary effects of transformational leadership are on affective reactions such as job
satisfaction (Yukl, 1999). Empirical research has supported this assertion (Judge, Piccolo,
& Ilies, 2004; Wofford & Liska, 1993). Theorists have suggested that transformational
leadership styles is associated with affective outcomes because socio-emotional support
increases positive affect and by supervision, salary and workplace (work condition), and
communicates (to followers that they are accepted and liked (Wofford & Liska, 1993).
Job satisfaction is generally defined as an employee’s affective reaction to a job, Based
on comparing actual outcomes with desired outcomes. It is generally recognized as a
42
multifaceted construct that includes employee feelings about a variety of both intrinsic
and extrinsic job elements. (Sabine, 2002)
“Job satisfaction is simply how people feel about their jobs and different aspects of their
jobs. It is the extent to which people like (satisfaction) or dislike (dissatisfaction) their
jobs. (Spector, 1997)”
Employees expect their job to provide an accumulation of features (e.g., pay, promotion,
autonomy) for which the employee has certain preferential values. The range and
importance of these values vary across individuals, but when the accumulation of unmet
expectations becomes sufficiently large, job satisfaction is lower, and there is a greater
Probability of withdrawal behaviours (Pearson, 1991).
Leadership is positively correlated with nurses’ job satisfaction and with commitment
towards the institution and its missions (Dunham-Taylor, 2000; Stordeur., 2000;
Morrison., 1997).
2.5.2 Work conditions
Job satisfaction has been defined as a positive emotional state resulting from the pleasure
a worker derives from the job (Locke, 1976; Spector, 1997) and as the affective and
cognitive attitudes held by an employee about various aspects of their work (Kalleberg,
1977; Mercer, 1997; Wright and Cropanzano, 1997; Wong, 1998); the later implying that
satisfaction is related to the component facets rather than the whole job, which is
consistent with Spector, (1997) view.
Overall employee satisfaction and commitment to an organization was defined as:
“employees are committed to the company’s growth and success and recommend it as a
good place work.”
43
Study by Yousef, (2000), leadership behavior was affected by commitment, which was
affected by job satisfaction and job performance. Yousef, (2000) states that job
satisfaction is an attitude toward work-related conditions, facets, or aspects of the job.
“Although day-to-day events in the work place may affect an employee’s level of job
satisfaction, such transitory events should not cause an employee to reevaluate seriously
his or her attachment to the overall organization” (Mowday,1982).
Organizations are facing major challenges, many of them resulting in restructuring,
reengineering and downsizing. Work environments have become more complex and
sophisticated. The need for leadership and personal commitments has become more
critical. (Earle, 1996) Deutschman, (1993) suggests, “Business in America has lost its
way, adrift in a sea of managerial mediocrity, desperately needing leadership to face
worldwide economic competition” (Deutschman, 1993). Therefore, today’s leaders are
confronted with unpredictable challenges, which require a different degree of flexibility.
For managers to lead their workers most effectively, they need a style of leadership
behavior that is tailored specifically to the employees’ level of commitment. (Niehouse,
1987) Unfortunately there has been a lack of research on this topic, until recently. Today
many popular magazines are using terms like empowering, motivating, visioning,
inspiring, rewarding, and committing. In summary, now appears to be an ideal time to
study the impact of transformational and transactional leadership on organizational
commitment, particularly in an international setting.
2.5.3 Supervision
Transformational leadership was positively related supervisor-rated performance, and job
satisfaction (p < .01). Transformational leaders also impacted subordinate outcomes
through the perceived climate they created for goal clarity and support for creative
thinking. Both goal clarity and support for creative thinking partially mediated the
44
relationship between transformational leadership and job satisfaction (p < .01; N = 447).
(Louise, 1998)
Results of Partial Least Squares analysis revealed that mentor transformational behavior
was more positively related to mentoring functions received (career development and
supervision) and Job-satisfaction of subordinations. (John. 1997)
Chiok Foong Loke,(2001) found that leadership behaviours explained 29% of job
satisfaction and Lucas (1991) that leadership style perceptions predicted 36,6% of the
variance in job satisfaction scores among nurses. Bratt et al. (2000) present results
indicating that job stress and nursing leadership are the most influential variables in the
explanation of job satisfaction among nurses.
Sorrentino, (1992) found significant correlations between head nurse managers
behaviours and job satisfaction in subordinates as well as a moderating effect of
leadership on job anxiety and support perceived by nurses.
Several studies have shown that transformational leadership correlates positively with
high job satisfaction among subordinates (Medley & Larochelle, 1995, Dunham-Taylor,
2000, Shieh, 2001).
(Medley & Larochelle, 1995) the driver analysis, based on individual survey responses
from 8,256 employees, supports the key finding that the local work unit manager
(leadership style) is absolutely critical in creating a respectful and empowering work unit
environment, which drives employee satisfaction/commitment. The key elements along
the path of the driver analysis are:
1 Respect and Diversity: Employees believe they are treated with respect and
dignity; that policies and procedures are fair; the company values diverse
viewpoints, a diverse workforce, and work/family balance.
2 Authority and Accountability: Employees have authority to carry out
responsibilities, are willing to take reasonable risks, feel safe to express
45
opinions/ideas, have a high regard for employees’ judgment.
3 Decision Making: Decisions are timely; employees are involved, asked for their
ideas, and have the necessary knowledge and information.
4 Work Unit Management: Managers understand issues, show concern for
employees’ well being, lead by example, and set clear priorities.
.
2.5.4 Pay and salary
Shieh et al. (2001) also found Contingent Reward Leadership styles to positively predict
job satisfaction. Results from a study conducted by Morrison et al. (1997) indicate that
both transformational and transactional leadership styles are positively related to Job
satisfaction.
Transformational leadership has also been found to positively impact followers’
development in terms of their motivation (monitory and non monitory rewards), morality,
and empowerment (Dvir, 2002), and it seems reasonable that a more favorable network
position may also be a developmental outcome.
Pollock, (1998) presents a result in accordance with this and puts emphasis on the
inspirational motivation leadership behaviours as being especially important for
subordinates’ job satisfaction.
Duxbury,(1985) found job satisfaction and burnout to be related to each other and
affected in a similar way by initiation of structure and consideration leadership, though
burnout was affected to a lesser degree. Blase, Dedrick, & Strathe,(1986)
Numerous factors influence job satisfaction, including: clinical duty/service and type of
work, nursing care delivery model, degree of professionalism, organizational climate,
supervision and interpersonal relationships, status, autonomy, repetition of duties, the
nature of tasks to be performed, job outcomes and pay (Sabine, 2002)
46
Bass, (1997) summarizes the research of the effects of transactional versus
transformational leadership on job satisfaction among subordinates and the effectiveness
of the organization. He ranks the different leadership styles in the following way:
1. Transformational leaders.
2. Leaders using Contingent Rewards.
3. Leaders using Active Management by Exception.
4. Leaders using Passive Management by Exception.
5. Laissez-faire Leaders.
2.5.5 Career development
The most common reason that departing staff give for their headlong rush to the sign
marked “exit” is the feeling that their career has come to a standstill with their current
employer; that they are in a “dead-end job”. (Virginia, 2005)
According to Simon Wilde, director of the HR firm Capita People and Development:
“Poor people- management practices cost UK employers millions of pounds each year
and many people leaving their jobs cite the lack of opportunity for career development as
the prime reason.”
“Career management helps identify peoples’ potential, guides them when there is change
in the organization – including a period of downsizing – and may even help them achieve
a better work/life Liverpool Hope University balance. Motivated employees are happier
and work more productively.” (Virginia, 2005)
So career management and long-term career planning are essential for employee job
satisfaction and essential too if employers are to retain their top people and a competitive
edge over their rivals. Career management involves ensuring that staff receive regular
training in their field and may encompass personal development courses that appear to
have no direct impact on work. (Virginia, 2005)
47
By paying for a top-performing salesperson to learn ballroom dancing or flower
arranging – just because they have taken a fancy to it – a smart employer builds on the
loyalty of that employee and reduces the risk that she or he will jump ship. The feeling
that you are learning something new –making yourself more employable, not more
vulnerable to the axe – can only increase your happiness at work rating(Virginia, 2005)
According to the latest British Social Attitudes survey – reveals that what makes us
unhappy at work includes the following: feelings of insecurity, stress, inadequate income,
exhaustion and “the feeling that my work is not useful to society.” While the first four are
perhaps self-evident, it is the fifth that is more intriguing. Wanting to do well and help
people is a career ambition that has traditionally been limited to social workers and
beauty queens, yet the notion that our job should have “meaning” aside from paying the
mortgage is now spreading to all parts of society. Organizations must give employees
opportunities to develop their employability in exchange for enhanced productivity and
commitment as long as an employee works in the firm (Waterman, 2000)
Therefore we could identify that all of the above four sub variables of Job-satisfaction
plays a significant role in subordinates Job-satisfaction.
Morrison, (1997) explore the relation between leadership style and empowerment and its
effect on job satisfaction among the nursing staff of a regional medical center. And
identified significant relationship between transformational leadership styles and Job-
satisfaction variables such as supervision, salary, work condition and career
opportunities.
Several empirical studies on transformational leadership found that transformational
leadership behaviors were positively related to work team success and leadership
effectiveness. Transformational leadership processes have also been suggested to enhance
followers' work-oriented values and shape the self-efficacies of followers. Employee
empowerment may be influenced by the perception that the organization cares about its
employees' well-being and that their work is valued. Empowering nurses may increase
48
job satisfaction and improve patient care. Leadership style and empowerment influence
job satisfaction among workers. Morrison, (1997)
2.6 Summary of Chapter 2
The Independent and Dependant variables were discussed in comprehensive detail.
Furthermore, literature justifying each of the hypotheses was presented. All of the
literature was gathered from a wide variety of research articles, papers and journals, after
a critical and thorough review of each of them.
CHAPTER 3
3.0 RESEARCH DESIGN
3.1 Conceptual Framework
The framework would be to test different Transformational leadership styles against
Subordinates Job-satisfaction measures. Independent Variables would be the
49
Transformational leadership styles and the Dependent Variables would be Subordinates
Job-satisfaction measures. As mentioned in the review of literature all variables have
been tested in different researches. The following diagram would best explain the
conceptual framework of this study.
INDEPENDENT VARIABLES DEPENDENT VARIABLES
The hypotheses formulated are shown in the next page.
Formulated hypotheses (Please refer Conceptual Framework):
TL= leadership styles variable (e.g. TL1= Transformational leadership variable 1)
TLA= Transformational Leadership Style of managers
DC= Demographic variable (e.g. DC1= Demographic variable 1)
JS= Job-Satisfaction variable (e.g. JS1= Job-Satisfaction variable 1)
JSA= Job-Satisfaction of Subordinates
50
Transformational leadership
style of managers
Idealized influence
Inspirational motivation
Intellectual Stimulation
Individual consideration
Demographic characteristics
of managers
Age
Gender
level of education
Income level
length of time in
position,
Job-Satisfaction of
Subordinates
Pay (Salary)
Work conditions
Career development
Supervision
TL1
TL2
TL3
TL4
DC4
JS1
JS2
JS3
JS4
TLA JSA
DC2
DC5
DC3
DC1
TL1 = JS1, JS2, JS3 & JS4
TL2 = JS1, JS2, JS3 & JS4
TL3 = JS1, JS2, JS3 & JS4
TL4 = JS1, JS2, JS3 & JS4
TLA= JSA
DC1 = JSA
DC2 = JSA
DC3 = JSA
DC4 = JSA
DC5 = JSA
51
3.1 List of Hypotheses that were formulated
Table 1: Hypothesis related to Idealized influence
Hypothesis Related to Idealized influence Statistical Tool Used
1 Ho1 There is a relationship between Idealized influence and supervision
Linear Regression
2. Ho2There is a relationship between Idealized influence and Pay of subordinates
Linear Regression
3 Ho3There is a relationship between Idealized influence and working conditions.
Linear Regression
4 Ho4There is a relationship between Idealized influence and career opportunities
Linear Regression
5 Ho5Idealized influence correlates positively with Job Satisfaction
Linear Regression
Table 2: Hypothesis related Inspirational motivation
Hypothesis Related to Inspirational motivation Statistical Tool Used
6 Ho6 There is a relationship between Inspirational motivation and supervision
Linear Regression
7 Ho7There is a relationship between Inspirational motivation and Pay of subordinates.
Linear Regression
8 Ho8There is a relationship between Inspirational motivation and working conditions
Linear Regression
9 Ho9There is a relationship between Inspirational motivation and career opportunities
Linear Regression
10 Ho10: Inspirational motivation correlates positively with Job Satisfaction
Linear Regression
52
Table 3: Hypothesis related Intellectual stimulation
Hypothesis Related to Intellectual stimulation Statistical Tool Used
11 Ho11There is a relationship between Intellectual stimulation and supervision
Linear Regression
12 Ho12There is a relationship between Intellectual stimulation and Pay of subordinates
Linear Regression
13 Ho13There is a relationship between Intellectual stimulation and working conditions.
Linear Regression
14 Ho14There is a relationship between Intellectual stimulation and career opportunities
Linear Regression
15 Ho15Intellectual stimulation correlates positively with Job Satisfaction
Linear Regression
Table 4: Hypothesis related individualized consideration
Hypothesis Related to Individualized consideration Statistical Tool Used
16 Ho16There is a relationship between Individualized consideration and supervision
Linear Regression
17 Ho17There is a relationship between Individualized consideration and Pay of subordinates.
Linear Regression
18 Ho18There is a relationship between Individualized consideration and working conditions
Linear Regression
19 Ho19There is a relationship between Individualized consideration and career opportunities
Linear Regression
20 Ho20Individualized consideration correlates positively with Job Satisfaction
Linear Regression
53
Table 5: Hypothesis related demographic characteristics
Hypothesis Related to Demographic characteristics managers Statistical Tool Used
21 Ho21There is a relationship between manager’s age and Job-satisfaction.
ANOVA
22 Ho22There is a relationship between manager’s Gender and Job-satisfaction.
ANOVA
23 Ho23There is a relationship between manager’s educational level and Job-satisfaction.
ANOVA
24 Ho24There is a relationship between manager’s income level and Job-satisfaction.
ANOVA
25 Ho25 There is a relationship between managers experience level and Job-satisfaction.
ANOVA
26 Ho26There is a relationship between Transformational leadership style and Subordinates Job-satisfaction.
Linear Regression
3.2 Summary of Chapter 3
The conceptual framework for this study was presented in this chapter, along with a
presentation of the independent and dependant variables. These were the measures of
transformational leadership, Furthermore the list hypotheses which would be tested later
in the study were presented in this chapter.
54
CHAPTER 4
4.0 METHODOLOGY
4.1 Introduction to the chapter
This chapter deals with the research methodology used for this research. This chapter will
give a brief summary on the research approach used, research strategy, sampling
techniques, the research procedure, data collection methods and relevant data analysis
techniques.
The research approach would be using to conduct the study is the deductive approach
with the use of developed hypotheses. The variables that were selected for the study
would therefore be tested using this method.
The literature of previous studies reveals that the dominant method of researching the
link between leadership styles and Job-satisfaction has been the quantitative
questionnaire (Huselid, 1995; Hoque, 1999). Saunders, (2003) have pointed out that the
quantitative survey “is a popular and common strategy in business and management
research,” and surveys enable “easy comparisons and appear to be authoritative.” Thus
primary data would be gathered by the use of a developed questionnaire. Secondary data
is gathered by the use of previously conducted research papers articles and journals.
4.2 Research approach
The research approach used would be the deductive approach. This would also consider
the use of developed hypotheses which would be tested in terms of their relationships.
Hence the selected variables would be tested in order to prove their relationships.
55
4.3 Research design
The research is design by taking into consideration only one dimensions of Multifactor
Leadership Questionnaire (MLQ) which is transformational leadership behaviours and it
was developed by Bass in 1985 this approach has been used in many pervious research
relating to leadership styles and MLQ questioner is used to identify the type of leadership
style existing in the organization. Therefore to identify the independent variable of
transformational leadership behaviours in banks a modified MLQ would be used.
The MLQ was first developed by Bass in 1985 and was revised several times through
subsequent Research. The TF subscales measured in this study included (a) Idealized
Influence (attributed), (b) Idealized Influence (behavior) (c) Inspirational Motivation, (d)
Intellectual Stimulation, and;(e) Individual Consideration. Confirmatory Factor Analysis
(CFA) will used to test convergent and discriminate validity for each MLQ subscale. This
questionnaire would help identify the TF leadership characteristics of leaders and
managers in banks.
4.3 Research strategy
The main strategy of the research in order to achieve the objectives of the research is to
do a cross section survey which would be carried out to gather data for the study. This is
appropriate because data would be gathered through the adoption of both interviews and
questionnaire methods.
4.4 Respondents and Sampling Procedure
4.4.1 Sampling
The sample consisted of the Ten Commercial Banks operating in Sri Lanka that are listed
by the Central Bank of Sri Lanka and each and every bank has many branches with many
staff members. Thus it is quite difficult to predict the exact amount of employees in the
Sri Lankan commercial banking sector. Hence the population is relatively large and
unknown the sample size would be estimated as a minimum of 384 according to
Anderson, 1996 p202.
56
Table 6: Population/ (Sampling Frame)
Population/(Sampling
Frame)
5% 4% 3% 2%
100 79 85 91 96
500 217 272 340 413
1000 277 375 516 705
5000 356 535 897 1622
50000 381 593 1044 2290
100000 382 596 1055 2344
1000000 384 599 1065 2344
25,000,000 384 600 1067 2400
Source: Anderson, 1996 p202.
Thus the same sampling model would be used in this study and a sample size which is
approximately 5% of the total population would be selected. Since there are many
branches for all six of the listed banks the distribution of questionnaires would evenly
spread amongst the branches. The employees in the banks would be selected with regards
to their level of understanding of English, the years of experience in the bank
4.4.2 Research procedure
The aim of this research is to identify leadership behaviours of managers and its impact
on subordinates Job Satisfaction therefore more priority was given to the managers and
staff that have been in the banks for a reasonable time period. Therefore the main
objective of research procedure would be to gather most important and appropriate data
for the research form selected commercial banks in Sri Lanka.
4.5 Data collection and Data analysis methods
Data Collection and Analysis would be done by the development of a questionnaire and
the questionnaires would be analyzed using correlation analysis and regression analysis
by employing available software packages (SPSS). The questionnaire is available in the
Appendix section for every variable.
57
4.6 Data collection
A quantitative method of data collection will be used in this study, where primary data
will be gathered using a questionnaire and secondary data will be collected with the help
of journals and research articles.
4.6.1 Primary data
The research is focused on the Banking employees in the commercial banking sector in
Sri Lanka where as the questionnaires were designed to evaluate independent and
dependent variables. The questionnaire would be developed based on the objectives and
the conceptual framework of the study. Thus each variable would be analyzed by the use
of measures that relate to the derived variables in the framework. A sample of the
questionnaire is attached in the Appendix.
4.6.2 Secondary data
Secondary data was gathered through the central bank reports, the department of statistics
and various interviews with Managers of the Banks. Also previously conducted
researches and written texts of several authors were referred.
4.6.3 Designing the questionnaire
A lot of time and effort was devoted to designing the main body of the questionnaire.
This was necessary, as questionnaires offer only one chance to collect data. This meant
that before actually started designing the format and context of the questionnaire had to
spend a great deal of time planning precisely what data was needed to collect and how
they should be analyzed, which implied going back to the aims and objectives of the
research and finding the best way to collect the information required.
58
4.6.4 Development of the Questionnaire
The questionnaire was developed using a standard format used in an earlier research
(Multifactor Leadership Questionnaire (MLQ) developed by Bass in 1985).
However, this was only available for the Leadership style variables. Measures of Job-
satisfaction have not been developed for banking industry. However, in the case of bank
industry the Job-satisfaction outcome should be easily observed. The measurements of
Job-satisfaction were developed through in-depth interviews with managers experts in the
banking industry as well as through the analysis of other empirical studies. Four main
measures were identified for this purpose, which were Salary, work condition, career
development and supervision.
4.6.5 Pilot Study
The pilot-tested the questionnaire with ten people, to ensure that it was clear and not
liable to be misinterpreted by potential respondents. The pilot test revealed several
problems and therefore the questionnaire needed improvement before it could be
distributed among the respondents.
4.6.6 Distribution of the questionnaire
The number of questionnaires distributed was 450 out of which 388 were received. The
questionnaires were distributed in a methodical manner in order to ensure the least
amount biasness. Questionnaires were distributed as follows:
275Questionnaires were Distributed among friends and employees at Public
Banks
175 Questionnaires were Distributed among the friends and employees at Private
Banks
59
4.6.7 Measurement of variables in the Questionnaire
The main variables of leadership style and Job-Satisfaction were measured using Likert
scales as proposed by William C. Johnson and Anuchit Sirikit, 2002. The Likert scale
was constructed using a 5-point scale anchored by “not at all” (1) to “Once in a while”
(2). And “Strongly agree” (1) to “Strongly disagree” (2).Variables such as age, gender,
type of service package and income was measured using nominal scales.
Dependent variables
As identified through the review of literature the following employee behaviours would
be measured using the following measures:-
Dependent variable Table 6: Dependent variable measures
Job Satisfaction
Measures Questions Work Itself
Pay
Career development
Supervision
Section 4( 6)
Section 4 (3)
Section 4 (9)
Section 4 (5)
Independent variables Table 7: Independent variable measures
Transformational leadership behaviours of managers
Measures QuestionsIdealized influence. Section 2( 1, 4, 8, 12, 16, 20,
24, 28,30,34)Inspirational motivation. Section 2(2,5,9,13,17,21,25, 29,
31,35)Intellectual stimulation. Section 2 (6,10,14,18,22,26,32,
36, 38)Individualized consideration Section 2( 3,7,11,15,19,23,27,
33,37)Demographic characteristics of managers
Age, marital status, sex, level of education and length of time in position,
Demographic questions
60
4.7 Statistical Treatment of Data
The SPSS software package was used to analyze the primary data gathered in the
research. The following techniques were used.
Descriptive Statistics: descriptive statistics were used to describe the basic
features of the data in this study. They provided simple summaries about the
sample and the measures. Together with simple graphics analysis, it proved to be
very useful for this study. By using descriptive statistics I was able to display
simply large amounts of data in a sensible way.
Cross tabs: Cross tabs were used to compare two variables with each other
(Independent & Dependant). This was used to develop a competitive analysis
between Public and private Banks
Reliability Analysis: This was used to check the reliability of the questionnaire.
This was a very useful tool since it helped to validate the study. From the
reliability analysis it was found that all variables used were reliable since the
alpha values were satisfactory.
Linear Regression: Linear regression was used to test out the hypothesis. A
justification of the chosen method is given below.
4.8 Justification of the chosen method
In order to test the hypothesis there were two methods that were considered. They are as
follows:
Linear Regression ( simple/multiple liner regression method)
Spearman’s Rank Correlation
61
The method that was chosen was liner regression. There are several reasons why I chose
this method. Linear regression was a simple and easy to use method which displayed
results which were easy to describe. Furthermore since mean values were calculated the
recommended method is linear regression, since correlation is basically used for
categorical variables.
4.9 Summary of Chapter 4
In this chapter, the research approach and strategy were discussed. Also the developments
and design of the questionnaire was discussed. The sample frame, sample size and the
sample selection were discussed. The statistical tools used were also discussed in this
chapter.
62
CHAPTER 5
5.0 ANALYSIS AND FINDINGS
5.1 Introduction to chapter
Chapter 5 deals with data analysis and presentation of the data regarding this research.
The software used to analyze the data is SPSS 13.0. The first stage involves a descriptive
analysis of the elements in the questionnaire. The next focuses on the reliability of the
questionnaire. This is where the variables in the questionnaire are tested for reliability
using the Cronbach’s alpha value. Finally, the developed hypothesis will be tested using a
regression analysis, and new findings will also be presented.
The first stage of the data presentation provides the demographic information of the
respondents. The gender, age, education level, income level, experience in banking and
Designation and leadership styles (4I’s) were the variables considered. The second stage
of this chapter covers the objectives of the study and the results of the conducted tests of
reliability and significance of the relationships through factor analysis and regression
analysis.
5.2Descriptive Analysis
5.2.1Gender
Out of the total amount of actual respondents, which was 384, 60 percent were male
while 40 percent were female this shows the un-biasness of the distribution of the sample
size
Table 8: Gender
63
Gender
60%
40%Male
Female
Figure 2: Gender
5.2.2 Age
Out of the 384 respondents subjected to the study the majority was of the age group of 25
or under Years is (49%). 44 percent were aged 26 and above while 4.4 percent were 41-
55 and 3.4 percent were 56 or older years of age.
Table 9: Age
Age Group
49%
44%
4%
3%
25 or under
26-40
41-55
56 or older
Figure 3: Age
64
5.2.3 Education level
Out of the 384 respondents subjected to the study the majority of 28.4 percent were
undergraduate. A/L qualified 29.4 percent professional were 21.4 percent and others
each had above 4.8 percent.
Table 10: Education level
Education Level
7%
30%
28%
9%
5%
21%O/L
A/L
Undergraduate
Graduate
Post Gratuate
Professional
Figure 4: Education level
65
5.2.4 Income level
The table shows the respondents income level. Where 41% of the respondents had a
monthly income level Rs.15001 - 25000. The reason behind the high percentage being
the 25000 and below income category was because of most of the respondents were
trainee and banking assistant level.
Table 11: Income level
Income level
28%
40%
15%
10%
3%
4%
Below 15000
15001-25000
25001-35000
35001-45000
45001-55000
55001 & above
Figure 5: Income level
5.2.5 Experience
40% of the respondents have worked in banks for less than 2 years. 26% have worked for
2-5 years. Finally 23% have worked for 5-10 years.
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Table 12: Experience in the industry
Experience in the industry
40%
26%
23%
3%
2%
6%
less than 2 years
betw een 2-5 years
betw een 5-10 years
betw een 10-15 years
betw een 15-25 years
more than 25 years
Figure 6: Experience in the industry
5.2.6 Designation
Around 57% of the employees have been working in the trainee and banking assistant
level. 33% are working as executives.
67
Table 13: Designation
Designation
18%
40%
33%
6% 3%
Traniee
Banking Assistant
Executive( Snr/Jur)
Manager
Regional Manager
Figure 7: Designation
5.2.7 Idealized Influence
Table 14: Idealized influence
According to the questionnaire analysis it is evident that the majority of respondents 44
percent agree that Idealized influence is used by their managers and 38.4 percent agree
that it is sometimes used on them. And because of due to the fact that the idealized
68
influence mean value is 3.35. Therefore it is possible to come to a conclusion that overall
the respondents agree that idealized influence is used by their managers. The next
diagram gives a graphical interpretation of the results.
FrequenntlyFairly oftenSometimesOnce in a whileNot at all
Idealized influence
200
150
100
50
0
Fre
qu
en
cy
Idealized influence
Figure 8: Idealized Influence
5.2.8 Inspirational Motivation
Table 15: Inspirational Motivation
According to the SPSS output it is evident that the majority of respondents (51%) agree
that “inspirational motivation” is fairly often used by their managers. And as a whole
mangers leadership style is only moderate with an inspirational motivation mean value of
69
3.44(sometimes). Therefore it is possible to come to a conclusion that overall the
majority of the respondents agree that inspirational motivation is fairly often used by
their managers.
FrequenntlyFairly oftenSometimesOnce in a whileNot at all
Inspirational Motivation
60
50
40
30
20
10
0
Pe
rcen
t
Inspirational Motivation
Figure 9: Inspirational Motivation
5.2.9 Intellectual Stimulation
Table 16: Intellectual Stimulation
Out of the 384 respondents it is evident that the majority of respondents agree that as a
whole the intellectual stimulation aspect of the leadership style is only moderate with a
reliability mean value of only 3.31 (sometimes). Therefore it is possible to come to a
70
conclusion that overall the respondents agree that managers sometimes use intellectual
stimulation leadership styles. The bar chart below depicts that the number of respondent’s
who say “sometimes” and “fairly often” are almost equal.
FrequenntlyFairly oftenSometimesOnce in a whileNot at all
Intellectual Stimulation
200
150
100
50
0
Fre
qu
en
cy
Intellectual Stimulation
Figure 10: Intellectual Stimulation
5.2.10 Individualized Consideration
Table 17: Individualized Consideration
The SPSS results point out the fact that the majority of the respondents (48%) agree that
as a whole the individualized consideration aspect of the leadership style is at a fairly
often level and is the highest compared to the variables tested previously. Therefore it
could be said that overall the respondents agree that individualized consideration
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leadership style is fairly often used by their managers. “Individualized consideration”
aspect of the leadership style they are currently using (individualized consideration mean
= 3.31). The bar chart given below points out that there is a higher percentage of people
who have selected “fairly often”.
FrequenntlyFairly oftenSometimesOnce in a whileNot at all
Individualized Consideration
200
150
100
50
0
Fre
qu
en
cy
Individualized Consideration
Figure 11: Individualized Consideration
5.1.11 Supervision
Table 18: supervision
When considering this variable it could be said that the respondents are satisfied since the
Supervision mean value is 3.65 which is high satisfactory level (Respondents agree).
72
Therefore it could be said that the respondents are satisfied with the supervision by their
managers. The bar chart shows that almost 210 respondents agree and approximately 60
other respondents strongly agree to the fact that supervision is of a satisfactory level. The
bar chart given below points out that there is a higher percentage of people who have
selected “Agree”.
Strongly AgreeAgreeNeither agree NorDisagree
DisagreeStrongly Disagree
Supervision mean
250
200
150
100
50
0
Fre
qu
en
cy
Supervision mean
Figure 12: Supervision
5.1.12 Salary
Table 19: Salary
Out of the 384 respondents it is evident that the majority of respondents agree that as a
whole the pay/salary aspect of the Job-satisfaction is at a moderate level (Neither agree
73
nor disagree) and is the lowest compared to the variables tested previously. Therefore it
could be said that overall the respondents are not highly satisfied but moderately happy
with the “pay/salary” aspect of the managers they are currently using (Overall pay/salary
mean = 2.69). The bar chart given below points out that there is a higher percentage of
people who have selected “Neither agree nor disagree”.
Strongly AgreeAgreeNeither agree NorDisagree
DisagreeStrongly Disagree
Salary mean
200
150
100
50
0
Fre
qu
en
cy
Salary mean
Figure 13: Salary
5.1.13 working condition mean
Table 20: work condition
74
According to the SPSS output it is evident that the majority of respondents(40%) agree
that as a whole “work condition” provided by managers is only moderate with a
reliability mean value of only 3.12 (Neither agree nor disagree). Therefore it is possible
to come to a conclusion that overall the respondents are not totally satisfied with the
“work condition” aspect of the service providers they are currently using. The bar chart
given below depicts the results of this variable.
Strongly AgreeAgreeNeither agree NorDisagree
DisagreeStrongly Disagree
Working condition mean
150
100
50
0
Fre
qu
ency
Working condition mean
Figure 14: Work condition
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5.1.14 Achievement and Career opportunities
Table 21: Achievement and Career opportunities
According to the SPSS output it is evident that the majority of respondents (40%) agree
that as a whole “career Achievement” provided by managers is only moderate with a
reliability mean value of only 3.11 (Neither agree nor disagree). Therefore it is possible
to come to a conclusion that overall the respondents are not totally satisfied with the
“career Achievement” aspect of the managers leadership style. The bar chart given below
depicts the results of this variable.
Strongly AgreeAgreeNeither agree NorDisagree
DisagreeStrongly Disagree
Achievement and Career development
150
100
50
0
Fre
qu
en
cy
Achievement and Career development
Figure 15: Career opportunities
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5.1.15 Overall leadership style
Table 21: Overall leadership style
Out of the 384 respondents it is evident that the majority of respondents (44%) agree that
all four transformational leadership styles are used sometimes by managers. And 36
percent of the respondents say that all four transformational leadership is used fairly often
by their managers in banks. The aspect of the leadership style is only moderate with a
leadership style mean value of only 3.22 (sometimes). Therefore it is possible to come to
a conclusion that overall the respondents agree that transformational leadership style is
used by their managers in banks. The bar chart given below depicts the results of this
variable.
FrequenntlyFairly oftenSometimesOnce in a whileNot at all
overall leadership style
200
150
100
50
0
Fre
qu
en
cy
overall leadership style
Figure 16: Overall Leadership style
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5.1.16 Overall job satisfaction
Table 22: Overall Job-satisfaction
When considering this variable it could be said that the majority of the respondents (49%)
are satisfied with their job. Job-satisfaction mean value is 3.22 which is a satisfactory
level (Respondents agree). Therefore it could be said that the respondents are satisfied
with the leadership styles adopted by their managers. The bar chart shows that almost 188
respondents agree and approximately 13 other respondents strongly agree to the fact that
coverage is of a satisfactory level.
Strongly AgreeAgreeNeither agree NorDisagree
DisagreeStrongly Disagree
overall Jobsatisfaction
200
150
100
50
0
Fre
qu
en
cy
overall Jobsatisfaction
Figure 17: Overall Job-satisfaction
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5.2 Manager’s demographic variables base on data gathered form managers
5.2.1 Manager’s gender
Out of the total amount of actual respondents, which was 100, 82 percent were male
while 18 percent were female this shows that most banks are having male managers in
their organization.
Table 23: Manager’s Gender
Manager’s gender
Frequency Percent Valid PercentCumulative
PercentValid male 82 82.0 82.0 82.0
female 18 18.0 18.0 100.0Total 100 100.0 100.0
Manger's Gender
82%
18%
male
female
Figure 18: Manager’s Gender
5.2.2 Managers Age
Out of the100 respondents subjected to the study the majority was of the age group of 36-
45 Years (49%). 30 percent were aged 25-35 while 15 percent were 45-55 and 6 percent
were 56 or older years of age. This shows that there are younger managers in banks.
79
Table 24: Manager’s Age
Manager’s age
Frequency Percent Valid PercentCumulative
PercentValid 25 - 35 30 30.0 30.0 30.0
36-45 49 49.0 49.0 79.045-55 15 15.0 15.0 94.055 or older 6 6.0 6.0 100.0Total 100 100.0 100.0
Manger's Age
30%
49%
15%
6%
25 - 35
36-45
45-55
55 or older
Figure 19: Manager’s Age
5.2.3 Manager’s Educational level
Out of the 100 respondents subjected to the study the majority was of undergraduate 27
percent. A/L qualified 28 percent professional were 23 percent and O/L qualified were 8
percent and post graduate were 4 percent.
Table 25: Manager’s Education level
Manager’s education level
Frequency Percent Valid PercentCumulative
PercentValid O/L 8 8.0 8.0 8.0 A/L 28 28.0 28.0 36.0 Undergraduate 27 27.0 27.0 63.0 Graduate 10 10.0 10.0 73.0 Post Graduate 4 4.0 4.0 77.0 Professional 23 23.0 23.0 100.0
Total 100 100.0 100.0
80
Manager’s education level
8%
28%
27%
10%
4%
23% O/L
A/L
Undergraduate
Graduate
Post Graduate
Professional
Figure 19: Manager’s Educational level
5.2.4 Managers Experience level
31% of the respondents have worked in banks between 5- 10 years.21% have worked for
10-15 years. 22% have worked for 15-25 years. And finally 16 percent have worked in
banks for more than 25 years.
Table 26: Manager’s Experience Level
Manager’s experience level
Frequency Percent Valid PercentCumulative
PercentValid between 2-5 years 10 10.0 10.0 10.0
between 5-10 years 31 31.0 31.0 41.0between 10-15 years 21 21.0 21.0 62.0between 15-25 years 22 22.0 22.0 84.0more than 25 years 16 16.0 16.0 100.0Total 100 100.0 100.0
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Managers experience level
10%
31%
21%
22%
16%
betw een 2-5 years
betw een 5-10 years
betw een 10-15 years
betw een 15-25 years
more than 25 years
Figure 20: Manager’s Experience level
5.2.5 Managers Income level
The table shows the respondents income level. Where 29% of the respondents had a
monthly income level Rs.35001 - 45000. And it can be said that the income is evilly
distributed among other categories.
Table 27: Manager’s Income level
Manager’s income
Frequency Percent Valid PercentCumulative
PercentValid 25001-35000 25 25.0 25.0 25.0
35001-45000 29 29.0 29.0 54.045001 -55000 23 23.0 23.0 77.055001 & above 23 23.0 23.0 100.0Total 100 100.0 100.0
Managers income
25%
29%23%
23%
25001-35000
35001-45000
45001 -55000
55001 & above
Figure 21: Manager’s Income level
82
5.3 Reliability Analysis of the Questionnaire
In order to check the reliability of the questionnaire the ‘KMO Bartlett’s test’ was
conducted on the data set in order to find out whether to continue on a factor analysis.
However this test proved to be insignificant since the factors that were extracted had a
low correlation. Therefore another method had to be uses in order to check the reliability
of the questionnaire.
Thereafter Chronbach’s Alpha value was calculated to measure the reliability of the
questionnaire. The results are as follows:
Table 28: Reliability Analysis
Variables CRONBACH’S α
Idealized Influence 0.9120
Inspirational motivation 0.9200
Intellectual stimulation 0.8940
Individual consideration 0.8630
Supervision 0.9120
Pay/ salary 0.7250
Work condition 0.9430
Career Development 0.9360
Over all reliability 0.9710
As a first step, scale reliability coefficients (Cronbach Alphas) for all measures adopted
in this study were computed. Nunnally, (1978) maintains that reliabilities which are less
than 0.6 are considered poor those in the 0.7 range are acceptable, while those above 0.8
are good. Results showed that the reliability measures ranged from 0.7250 up to 0.9430.
And an overall reliability of the variables was 0.9710. And the transformational
leadership style scale reliability estimate is 0.863, Job satisfaction scale showed a
reliability of minimum 0.725, while
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5.4 Results of the Regression Analysis
According to the literature review several variables both dependant and independent were
identified. Also from the literature several hypotheses were formed. Therefore in order to
measure the relationships of the independent and dependant variables regression analysis
was used (Hypotheses were tested). Regression analysis was carried out on each
independent and dependant variable separately. And ANOVA method was used to check
the relationship between manager’s demographic variables and subordinates Job-
satisfaction.
Squared Change: This is the change in the R squared statistic that is produced by adding
or deleting an independent variable. If the R squared change associated with a variable is
large, that means that the variable is a good predictor of the dependent variable.
5.4.1 H1
There is a positive relationship between Idealized influence and supervision
A regression analysis was carried out to identify the relationship between Idealized
Influence and supervision. Thus table clearly shows that the relationship between the two
variables is significant (P=0.000). Further it is evident that idealized influence has a 94%
correlation with supervision (Beta=0.694)
Table 29: Hypotheses 1
Model Beta R Square change Sig. F change Idealized Influence 0.941 0.482 0.000
Thus as the relationship between the two variables were highly significant hence the null
hypothesis Ho1 was rejected and the alternative hypothesis H1 was accepted.
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5.4.2 H2
There is a positive relationship between Idealized influence and salary.
A regression analysis was carried out to identify the relationship between Idealized
Influence and salary. Thus table clearly shows that the relationship between the two
variables is significant (P=0.000). Further it is evident that idealized influence has a 48%
correlation with salary (Beta=0.485).However the R square is not highly significant.
Table 30: Hypotheses 2
Model Beta R Square change Sig. F change Idealized Influence 0.485 0.236 0.000
Thus as the relationship between the two variables were highly significant hence the null
hypothesis Ho1 was rejected and the alternative hypothesis H1 was accepted.
5.4.3 H3
There is a positive relationship between Idealized influence and work condition.
A regression analysis was carried out to identify the relationship between Idealized
Influence and work condition. Thus table clearly shows that the relationship between the
two variables is significant (P=0.000). Further it is evident that idealized influence has a
41% correlation with work condition (Beta=0.411). However the R square is not highly
significant.
Table 31: Hypotheses 3
Model Beta R Square change Sig. F change Idealized Influence 0.411 0.169 0.000
Thus as the relationship between the two variables were highly significant hence the null
hypothesis Ho1 was rejected and the alternative hypothesis H1 was accepted.
85
5.4.4 H4
There is a positive relationship between Idealized influence and career Achievements
A regression analysis was carried out to identify the relationship between Idealized
Influence and career Achievements. Thus table clearly shows that the relationship
between the two variables is significant (P=0.000). Further it is evident that idealized
influence has a 46% correlation with career Achievements (Beta=0.469). However the R
square is not highly significant.
Table 32: Hypotheses 4
Model Beta R Square change Sig. F change Idealized Influence 0.469 0.220 0.000
Thus as the relationship between the two variables were highly significant hence the null
hypothesis Ho1 was rejected and the alternative hypothesis H1 was accepted.
5.4.5 H5
Idealized influence correlates positively with Job Satisfaction
A regression analysis was carried out to identify the relationship between Idealized
Influence and over all job-satisfaction. Thus table clearly shows that the relationship
between the two variables is significant (P=0.000). Further it is evident that idealized
influence has a 57% correlation with Job Satisfaction (Beta=0.576)
Table 33: Hypotheses 5
Model Beta R Square change Sig. F change Idealized Influence 0.576 0.332 0.000
Thus as the relationship between the two variables were highly significant hence the null
hypothesis Ho1 was rejected and the alternative hypothesis H1 was accepted.
86
5.4.6 H6
There is a positive relationship between Inspirational motivation and supervision.
A regression analysis was carried out to identify the relationship between Inspirational
motivation and supervision. Thus table clearly shows that the relationship between the
two variables is significant (P=0.000). Further it is evident that Inspirational motivation
has a 70% correlation with supervision (Beta=0.705)
Table34: Hypotheses 6
Model Beta R Square change Sig. F change Inspirational motivation 0.705 0.497 0.000
Thus as the relationship between the two variables were highly significant hence the null
hypothesis Ho1 was rejected and the alternative hypothesis H1 was accepted
5.4.7 H7
There is a positive relationship between Inspirational motivation and salary.
A regression analysis was carried out to identify the relationship between Inspirational
motivation and salary. Thus table clearly shows that the relationship between the two
variables is significant (P=0.000). Further it is evident that Inspirational motivation has a
49% correlation with salary (Beta=0.498). However the R square is not highly
significant.
Table 35: Hypotheses 7
Model Beta R Square change Sig. F change Inspirational motivation 0.498 0.248 0.000
Thus as the relationship between the two variables were highly significant hence the null
hypothesis Ho1 was rejected and the alternative hypothesis H1 was accepted
87
5.4.8 H8
There is a positive relationship between Inspirational motivation and work condition
A regression analysis was carried out to identify the relationship between Inspirational
motivation and work condition. Thus table clearly shows that the relationship between
the two variables is significant (P=0.000). Further it is evident that Inspirational
motivation has a 52% correlation with work condition (Beta=0.525). However the R
square is not highly significant.
Table 36: Hypotheses 8
Model Beta R Square change Sig. F change Inspirational motivation 0.525 0.275 0.000
Thus as the relationship between the two variables were highly significant hence the null
hypothesis Ho1 was rejected and the alternative hypothesis H1 was accepted
5.4.9 H9
There is a positive relationship between Inspirational motivation and career Achievements
A regression analysis was carried out to identify the relationship between Inspirational
motivation and career Achievements. Thus table clearly shows that the relationship
between the two variables is significant (P=0.000). Further it is evident that Inspirational
motivation has a 54% correlation with career Achievements (Beta=0.546). However the
R square is not highly significant.
Table 37: Hypotheses 9
Model Beta R Square change Sig. F change Inspirational motivation 0.546 0.298 0.000
Thus as the relationship between the two variables were highly significant hence the null
hypothesis Ho1 was rejected and the alternative hypothesis H1 was accepted
88
5.4.10 H10
There is a positive relationship between Inspirational motivation and over all job-satisfaction of subordinates
A regression analysis was carried out to identify the relationship between Inspirational
motivation and over all job-satisfaction. Thus table clearly shows that the relationship
between the two variables is significant (P=0.000). Further it is evident that Inspirational
motivation has a 65% correlation with over all job-satisfaction (Beta=0.651)
Table 38: Hypotheses 10
Model Beta R Square change Sig. F change Inspirational motivation 0.651 0.423 0.000
Thus as the relationship between the two variables were highly significant hence the null
hypothesis Ho1 was rejected and the alternative hypothesis H1 was accepted
5.4.11 H11
There is a positive relationship between Intellectual stimulation and supervision. A regression analysis was carried out to identify the relationship between Intellectual
stimulation. Thus table clearly shows that the relationship between the two variables is
significant (P=0.000). Further it is evident that Intellectual stimulation has a 71%
correlation with supervision (Beta=0.712).
Table 19: Hypotheses 11
Model Beta R Square change Sig. F change Intellectual stimulation 0.712 0.506 0.000
Thus as the relationship between the two variables were highly significant hence the null
hypothesis Ho1 was rejected and the alternative hypothesis H1 was accepted
89
5.4.12 H12
There is a positive relationship between Intellectual stimulation and salary. A regression analysis was carried out to identify the relationship between Intellectual
stimulation and salary. Thus table clearly shows that the relationship between the two
variables is significant (P=0.000). Further it is evident that Intellectual stimulation has a
48% correlation with salary (Beta=0.482). However the R square is not highly
significant.
Table 40: Hypotheses 12
Model Beta R Square change Sig. F change Intellectual stimulation 0.482 0.232 0.000
Thus as the relationship between the two variables were highly significant hence the null
hypothesis Ho1 was rejected and the alternative hypothesis H1 was accepted
5.4.13 H13
There is a positive relationship between Intellectual stimulation and work condition. A regression analysis was carried out to identify the relationship between Intellectual
stimulation and work condition. Thus table clearly shows that the relationship between
the two variables is significant (P=0.000). Further it is evident that Intellectual
stimulation has a 38% correlation with work condition (Beta=0.388). However the R
square is not highly significant.
Table 21: Hypotheses 13
Model Beta R Square change Sig. F change Intellectual stimulation 0.388 0.151 0.000
Thus as the relationship between the two variables were highly significant hence the null
hypothesis Ho1 was rejected and the alternative hypothesis H1 was accepted
90
5.4.14 H14
There is a positive relationship between Intellectual stimulation and career Achievements.
A regression analysis was carried out to identify the relationship between Intellectual
stimulation and career Achievements. Thus table clearly shows that the relationship
between the two variables is significant (P=0.000). Further it is evident that Intellectual
stimulation has a 48% correlation with career Achievements (Beta=0.480). However the
R square is not highly significant.
Table 42: Hypotheses 14
Model Beta R Square change Sig. F change Intellectual stimulation 0.480 0.230 0.000
Thus as the relationship between the two variables were highly significant hence the null
hypothesis Ho1 was rejected and the alternative hypothesis H1 was accepted
5.4.15 H15
There is a positive relationship between Intellectual stimulation and over all job-satisfaction of subordinates. A regression analysis was carried out to identify the relationship between Intellectual
stimulation and over all job-satisfaction of subordinates. Thus table clearly shows that the
relationship between the two variables is significant (P=0.000). Further it is evident that
Intellectual stimulation has a 58% correlation with over all job-satisfaction of
subordinates (Beta=0.578).
Table 43: Hypotheses 15
Model Beta R Square change Sig. F change Intellectual stimulation 0.578 0.334 0.000
Thus as the relationship between the two variables were highly significant hence the null
hypothesis Ho1 was rejected and the alternative hypothesis H1 was accepted
91
5.4.16 H16
There is a positive relationship between Individualized consideration and supervision. A regression analysis was carried out to identify the relationship between Individualized
consideration and supervision. Thus table clearly shows that the relationship between the
two variables is significant (P=0.000). Further it is evident that Individualized
consideration has a 74% correlation with supervision (Beta=0.746). However the R
square is highly significant.
Table 44: Hypotheses 16
Model BetaR Square change Sig. F change
Individualized consideration 0.746 0.557 0.000
Thus as the relationship between the two variables were highly significant hence the null
hypothesis Ho1 was rejected and the alternative hypothesis H1 was accepted
5.4.17 H17
There is a positive relationship between Individualized consideration and salary. A regression analysis was carried out to identify the relationship between Individualized
consideration and salary. Thus table clearly shows that the relationship between the two
variables is significant (P=0.000). Further it is evident that Individualized consideration
has a 54% correlation with salary (Beta=0.543). However the R square is not highly
significant.
Table 45: Hypotheses 17
Model Beta R Square change Sig. F change Individualized consideration 0.543 0.295 0.000
Thus as the relationship between the two variables were highly significant hence the null
hypothesis Ho1 was rejected and the alternative hypothesis H1 was accepted
92
5.4.18 H18
There is a positive relationship between Individualized consideration and work condition. A regression analysis was carried out to identify the relationship between Individualized
consideration and work condition. Thus table clearly shows that the relationship between
the two variables is significant (P=0.000). Further it is evident that Individualized
consideration has a 48% correlation with work condition (Beta=0.489).
Table 46: Hypotheses 18
Model BetaR Square change Sig. F change
Individualized consideration 0.489 0.239 0.000
Thus as the relationship between the two variables were highly significant hence the null
hypothesis Ho1 was rejected and the alternative hypothesis H1 was accepted
5.4.19 H19
There is a positive relationship between Individualized consideration and career Achievements. A regression analysis was carried out to identify the relationship between Individualized
consideration and career Achievements. Thus table clearly shows that the relationship
between the two variables is significant (P=0.000). Further it is evident that
Individualized consideration has a 59% correlation with career Achievements
(Beta=0.599).
Table 47: Hypotheses 19
Model BetaR Square change Sig. F change
Individualized consideration 0.599 0.359 0.000
Thus as the relationship between the two variables were highly significant hence the null
hypothesis Ho1 was rejected and the alternative hypothesis H1 was accepted
93
5.4.20. H20
There is a significant relationship between Individualized consideration and over all job-satisfaction of subordinates. A regression analysis was carried out to identify the relationship between Individualized
consideration and over all job-satisfaction of subordinates. Thus table clearly shows that
the relationship between the two variables is significant (P=0.000). Further it is evident
that Individualized consideration has a 67% correlation with over all job-satisfaction of
subordinates (Beta=0.679).
Table 48: Hypotheses 20
Model BetaR Square change Sig. F change
Individualized consideration 0.679 0.462 0.000
Thus as the relationship between the two variables were highly significant hence the null
hypothesis Ho1 was rejected and the alternative hypothesis H1 was accepted
5.4.21 H21
There is a significant relationship between manager’s age and Job-satisfaction
A regression analysis was carried out to identify the relationship between manager’s age
and over all job-satisfaction of subordinates. Thus ANOVA table clearly shows that there
is no Significant relationship between the two variables (P=0.867).
Table 49: Hypotheses 21
Thus as the relationship between the two variables were significant hence the alternative
hypothesis H1 was rejected and the null hypothesis H01 was accepted
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5.4.22 H22
There is a significant relationship between manager’s Gender and Job-satisfaction A regression analysis was carried out to identify the relationship between manager’s
Gender and over all job-satisfaction of subordinates. Thus ANOVA table clearly shows
that there is no Significant relationship between the two variables (P=0.856).
Table 50: Hypotheses 22
Thus as the relationship between the two variables were significant hence the alternative
hypothesis H1 was rejected and the null hypothesis H01 was accepted
5.4.23 H23
There is a significant relationship between manager’s educational level and Job-satisfaction A regression analysis was carried out to identify the relationship between manager’s
educational level and over all job-satisfaction of subordinates. Thus ANOVA table
clearly shows that there is no Significant relationship between the two variables
(P=0.956).
Table 51: Hypotheses 23
Thus as the relationship between the two variables were significant hence the alternative
hypothesis H1 was rejected and the null hypothesis H01 was accepted
95
5.4.24 H24
There is a significant relationship between manager’s Experience level and Job-satisfaction A regression analysis was carried out to identify the relationship between manager’s
experience level and over all job-satisfaction of subordinates. Thus ANOVA table clearly
shows that there is no Significant relationship between the two variables (P=0.618).
Table 52: Hypotheses 24
Thus as the relationship between the two variables were significant hence the alternative
hypothesis H1 was rejected and the null hypothesis H01 was accepted
5.4.25 H25
There is a significant relationship between manager’s Income level and Job-satisfaction A regression analysis was carried out to identify the relationship between manager’s
income level and over all job-satisfaction of subordinates. Thus ANOVA table clearly
shows that there is no Significant relationship between the two variables (P=0.320).
Table 53: Hypotheses 25
Thus as the relationship between the two variables were significant hence the alternative
hypothesis H1 was rejected and the null hypothesis H01 was accepted
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5.4.26 H26
There is a positive relationship between Transformational leadership style and Subordinates Job-satisfaction.
A regression analysis was carried out to identify the Transformational leadership style
and over all job-satisfaction of subordinates. Thus table clearly shows that the
relationship between the two variables is significant (P=0.000). Further it is evident that
Transformational leadership style has a 64% correlation with over all job-satisfaction of
subordinates (Beta=0.647). However R Square is highly significant.
Table 54: Hypotheses 26
Model BetaR Square change Sig. F change
Individualized consideration 0.647 0.418 0.000
Thus as the relationship between the two variables were highly significant hence the null
hypothesis Ho1 was rejected and the alternative hypothesis H1 was accepted
5.5 Summary of tested Hypotheses
Table 55: summary of tested Hypotheses
Hypothesis Regression Analysis Decision
1.
H1
There is a positive relationship between Idealized influence and supervision
Under 95% confidence level there is a significance of p = 0.000Therefore µ1 = µ2
Accept H1There is a positive relationship between Idealized influence and supervision
2. H2
There is a positive relationship between Idealized influence and salary
Under 95% confidence level there is a significance of p = 0.000 Therefore µ1 = µ2
Accept H2There is a positive relationship between Idealized influence and salary
3. H3
There is a positive relationship between Idealized influence and work condition
Under 95% confidence level there is a significance of p = 0.000 Therefore µ1 = µ2
Accept H3There is a positive relationship between Idealized influence and work condition
4. H4
There is a positive relationship between Idealized influence and career Achievements
Under 95% confidence level there is a significance of p = 0.000
Accept H4There is a positive relationship between Idealized influence and career Achievements
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Therefore µ1 = µ25. H5
Idealized influence correlates positively with over all job-satisfaction of subordinates
Under 95% confidence level there is a significance of p = 0.000 Therefore µ1 = µ2
Accept H5Idealized influence correlates positively with over all job-satisfaction of subordinates
6. H6
There is a positive relationship between Inspirational motivation and supervision.
Under 95% confidence level there is a significance of p = 0.000 Therefore µ1 = µ2
Accept H6There is a positive relationship between Inspirational motivation and supervision.
7. H7
There is a positive relationship between Inspirational motivation and salary
Under 95% confidence level there is a significance of p = 0.005 Therefore µ1 = µ2
Accept H7There is a positive relationship between Inspirational motivation and salary
8. H8 There is a positive relationship between Inspirational motivation and work condition
Under 95% confidence level there is a significance of p = 0.000 Therefore µ1 = µ2
Accept H8There is a positive relationship between Inspirational motivation and work condition
9. H9
There is a positive relationship between Inspirational motivation and career Achievements
Under 95% confidence level there is a significance of p = 0.000 Therefore µ1 = µ2
Accept H9There is a positive relationship between Inspirational motivation and career Achievements
10. H10
There is a positive relationship between Inspirational motivation and over all job-satisfaction of subordinates
Under 95% confidence level there is a significance of p = 0.000 Therefore µ1 = µ2
Accept H10There is a positive relationship between Inspirational motivation and over all job-satisfaction of subordinates.
11. H11
There is a positive relationship between Intellectual stimulation and supervision
Under 95% confidence level there is a significance of p = 0.000 Therefore µ1 = µ2
Accept H11There is a positive relationship between Intellectual stimulation and supervision
12. H12
There is a positive relationship between Intellectual stimulation and salary
Under 95% confidence level there is a significance of p = 0.000 Therefore µ1 = µ2
Accept H12There is a positive relationship between Intellectual stimulation and salary
13. H13
There is a positive relationship between Intellectual stimulation and work condition
Under 95% confidence level there is a significance of p = 0.000Therefore µ1 = µ2
Accept H13There is a positive relationship between Intellectual stimulation and work condition
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14. H14
There is a positive relationship between Intellectual stimulation and career Achievements.
Under 95% confidence level there is a significance of p = 0.000 Therefore µ1 = µ2
Accept H14There is a positive relationship between Intellectual stimulation and career Achievements.
15. H15
There is a positive relationship between Intellectual stimulation and over all job-satisfaction of subordinates.
Under 95% confidence level there is a significance of p = 0.001 Therefore µ1 = µ2
Accept H15There is a positive relationship between Intellectual stimulation and over all job-satisfaction of subordinates.
16. H16
There is a positive relationship between Individualized consideration and supervision. .
Under 95% confidence level there is a significance of p = 0.000 Therefore µ1 = µ2
Accept H16There is a positive relationship between Individualized consideration and supervision.
17. H17
There is a positive relationship between Individualized consideration and salary
Under 95% confidence level there is a significance of p = 0.000 Therefore µ1 = µ2
Accept H17There is a positive relationship between Individualized consideration and salary
18. H18
There is a positive relationship between Individualized consideration and work condition
Under 95% confidence level there is a significance of p = 0.000 Therefore µ1 = µ2
Accept H18There is a positive relationship between Individualized consideration and work condition
19. H19
There is a positive relationship between Individualized consideration and career Achievements.
Under 95% confidence level there is a significance of p = 0.000 Therefore µ1 = µ2
Accept H19There is a positive relationship between Individualized consideration and career Achievements.
20. H20
There is a positive relationship between Individualized consideration and over all job-satisfaction of subordinates.
Under 95% confidence level there is a significance of p = 0.000 Therefore µ1 = µ2
Accept H20There is a positive relationship between Individualized consideration and over all job-satisfaction of subordinates.
21. H21
There is a significant relationship between manager’s age and Job-satisfaction.
Under 95% confidence level there is a significance of p = 0867Therefore µ1 = µ2
Rejected H21There is a No relationship between manager’s age and Job-satisfaction.
22. H22
There is a significant relationship between manager’s Gender and Job-satisfaction.
Under 95% confidence level there is a significance of p = 0.856
Rejected H22There is a No relationship between manager’s Gender and Job-satisfaction.
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Therefore µ1 = µ223. H23
There is a significant relationship between manager’s educational level and Job-satisfaction.
Under 95% confidence level there is a significance of p = 0.965 Therefore µ1 = µ2
Rejected H23There is NO relationship between manager’s educational level and Job-satisfaction.
24. H24
There is a significant relationship between manager’s income level and Job-satisfaction.
Under 95% confidence level there is a significance of p = 0.618Therefore µ1 = µ2
Rejected H24There is No relationship between manager’s income level and Job-satisfaction.
25 H25
There is a significant relationship between managers experience level and Job-satisfaction.
Under 95% confidence level there is a significance of p = 0.320 Therefore µ1 = µ2
Rejected H25There is No relationship between managers experience level and Job-satisfaction.
26 H26
There is a positive relationship between Transformational leadership style and Subordinates Job-satisfaction.
Under 95% confidence level there is a significance of p = 0.000Therefore µ1 = µ2
AcceptedH26There is a positive relationship between Transformational leadership style and Subordinates Job-satisfaction.
5.6 Further findings
A Multiple regression analysis (stepwise) was carried out to identify inter- relationship
between relationship Transformational Leadership styles and also to identify the
relationship between subordinates Job-satisfaction Sub-variables such as supervision,
salary, work condition and career opportunities. And based on the findings of multiple
linear regression analysis the findings of simple linear regression method will be
strengthening even more.
Multiple linear regression attempts to model the relationship between two or more
explanatory variables and a response variable by fitting a linear equation to observed
data. Every value of the independent variable x is associated with a value of the
dependent variable y. (http://www.stat.yale.edu/Courses/1997-98/101/linmult.htm)
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5.6.1 Hypotheses testing for Transformational Leadership styles and Supervision.
Table 56: Model summary for Leadership styles and Supervision.
Model Beta R Square change Sig. F change Individualized consideration 0.486 0.603 0.000 intellectual Stimulation 0.383 0.603 0.000
a. Predictors: (constant), Individualized consideration and Intellectual stimulation
Thus table below clearly shows that the relationship between the two variables is
significant. This is the change in the R squared statistic that is produced by adding or
deleting an independent variable. Because of the R squared change associated with a
variable is large, that means that the variable is a good predictor of the dependent
variable. (0.603)
Table 57: Coefficients for Leadership styles and Supervision.
Based on this model regression analysis was carried out to identify the relationship
between Leadership styles and supervision. Thus table clearly shows that the inter-
relationship between Individualized consideration and intellectual Stimulation and also
shows that those two variables has significant relationship between supervision.
(P=0.000). Further it is evident that both Individualized consideration and intellectual
Stimulation Beta values shows a positive correlation with supervision (Beta=0.486,
Beta=0.338)
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Table 58: Excluded for Leadership styles and Supervision
Excluded Variables Beta t Sig. F change Idealized Influence -0.041 -0.517 0.605Inspirational Motivation 0.011 0.142 0.887
a. Predictors in the Model: ( Constant), Individualized Consideration and Intellectual
Stimulation
b. Dependent Variable: Supervision
According the multiple regression analysis carried out check the relationship between
Leadership styles and supervision. And thus according to the table only Idealized
influence and Inspirational Motivation were rejected or showed no significant
relationship between supervision.
Therefore the multiple regression analysis identified significant inter-relationship
between Individualized consideration and intellectual Stimulation and also significant
relationship between supervision as well. And Idealized influence and Inspirational
Motivation were rejected or showed no significant relationship between supervision.
5.6.2 Hypotheses testing for Leadership styles and Salary
Table 59: Model summary for Leadership styles and salary
Model Beta R Square change Sig. F change Individualized consideration 0.422 0.305 0.000 intellectual Stimulation 0.157 0.305 0.018
a. Predictors: (constant), Individualized consideration and Intellectual stimulation
Thus table clearly shows R Square values of the two models used to check the hypotheses
and Thus table clearly shows that the relationship between the two variables is significant
(P=0.000). This is the change in the R squared statistic that is produced by adding or
deleting an independent variable. Because of the R squared change associated with a
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variable is large, that means that the variable is a good predictor of the dependent
variable. (0.305).
Table 60: Coefficients for Leadership styles and salary
According to above model regression analysis was carried out to identify the relationship
between Leadership styles and supervision. Thus table clearly shows that the inter-
relationship between Individualized consideration and intellectual Stimulation and also
shows that those two variables has significant relationship between salary. (P=0.000,
P=0.018). Further it is evident that both Individualized consideration and intellectual
Stimulation Beta values shows a positive correlation with salary (Beta=0.422,
Beta=0.157)
Table 61: Excluded variables for Leadership styles and salary
Excluded Variables Beta t Sig. F change Idealized Influence -0.014 -0.132 0.895Inspirational Motivation 0.031 0.305 0761
a. Predictors in the Model: ( Constant), Individualized Consideration and Intellectual
Stimulation
b. Dependent Variable: Supervision
According the multiple regression analysis carried out check the relationship between
Leadership styles and salary. According to this model Idealized influence and
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Inspirational Motivation were rejected or showed no significant relationship and other
two independent variables were accepted.
Therefore the multiple regression analysis identified significant inter-relationship
between Individualized consideration and intellectual Stimulation and also significant
relationship between salary as well. And Idealized influence and Inspirational Motivation
were rejected or showed no significant relationship between salary.
5.6.3 Hypotheses testing for Leadership styles and Work condition
Table 62: Model Summary for Leadership styles and work condition
Model Beta R Square change Sig. F change Inspirational Motivation 1.113 0.357 0.000Idealized Influence -0.836 0.357 0.000Individualized consideration 0.238 0.357 0.002
a. Predictors: (constant), Individualized consideration and Intellectual stimulation
Thus table clearly shows R Square values of the two models used to check the hypotheses
and Thus table clearly shows that the relationship between the two variables is significant
(P=0.000). This is the change in the R squared statistic that is produced by adding or
deleting an independent variable. Because of the R squared change associated with a
variable is large, that means that the variable is a good predictor of the dependent
variable. (0.357).
Table 63: Coefficients for Leadership styles and work condition
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According to multiple linear regression analysis the relationship between leadership
styles and work condition is significant. Thus table clearly shows that the inter-
relationship between Inspirational motivation, Intellectual Stimulation and Individualized
consideration and also shows that those three variables has significant relationship
between work condition. (P=0.000, P=0.000, P=0.002).
Further it is evident that both inspirational motivation and Individualized consideration
have a positive relationship with work condition and Idealized influence has a negative
relationship between work conditions. Beta values shows a correlation with work
condition (Beta=1.113, Beta=-0.836 and Beta=-0.238)
Table 64: Excluded Variables for Leadership styles and work condition
Excluded Variables Beta t Sig. F change Intellectual stimulation -0.079 -0.874 0.383
a. Predictors in the Model: ( Constant), Inspirational Motivation, Individualized
Consideration and Intellectual Stimulation
b. Dependent Variable: Working condition mean
According the multiple regression analysis carried out check the relationship between
Leadership styles and work condition. And according to the multiple linear regression
model only Intellectual Stimulation was rejected and the rest were identified to have
significant relationship between work conditions.
Therefore the multiple regression analysis identified significant inter-relationship
between Inspirational motivation, Intellectual Stimulation and Individualized
consideration and also significant relationship between work conditions as well. And
Intellectual Stimulation was identified to have no relationship between work conditions
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5.6.4 Hypotheses testing for Leadership styles and Career opportunities
Table 65: Model Summary for Leadership styles and career development
Model Beta R Square change Sig. F change Individualized consideration 0.599 0.359 0.000
a. Predictors: (constant), Individualized consideration and Intellectual stimulation
To identify the relationship between Transformational Leadership styles Sub- variables
and work condition A Multiple regression analysis (stepwise) was carried out. Thus table
clearly shows R Square values of the two models used to check the hypotheses and Thus
table clearly shows that the relationship between the two variables is significant
(P=0.000). This is the change in the R squared statistic that is produced by adding or
deleting an independent variable. Because of the R squared change associated with a
variable is large, that means that the variable is a good predictor of the dependent
variable. (0.357)
Table 66: coefficients for Leadership styles and career development
Coefficientsa
.746 .172 4.324 .000
.745 .051 .599 14.698 .000
(Constant)
IndividualizedConsideration mean
Model1
B Std. Error
UnstandardizedCoefficients
Beta
StandardizedCoefficients
t Sig.
Dependent Variable: Achievement meana.
Multiple regression model analysis carried out to identify the relationship between
Leadership styles and career development. Thus table clearly shows that the relationship
between Individualized consideration and career development is significant (P=0.000).
Further it is evident that Individualized consideration has a positive 59% correlation with
work condition (Beta=0.599).has mentioned early the R square is also significant for
Model one (R square=0.359).
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Table 67: Excluded variables for Leadership styles and career development
Excluded Variables Beta t Sig. F change Idealized Influence -0.078 -1.088 0.277Inspirational Motivation 0.140 1.842 0.066Intellectual stimulation 0.048 0.752 0.453
a. Predictors in the Model: ( Constant), Individualized Consideration
b. Dependent Variable: Career Achievements mean
According the multiple regression analysis carried out check the relationship between
Leadership styles and career opportunities. Only one variable Individualized
consideration was identified as having significant relationship with career development
and the rest (Idealized influence, Inspirational motivation and Intellectual Stimulation)
were rejected or showed on significant relationship between career opportunities.
Therefore the multiple regression analysis identified significant relationship between
Individualized consideration and significant relationship between career opportunities.
And Idealized influence, Inspirational motivation and Intellectual Stimulation were
identified to have no relationship between career opportunities.
5.6.5 Hypotheses testing for Leadership styles and over all job-satisfaction of subordinates.
A Multiple regression analysis (stepwise) was carried out to identify the relationship
between Transformational Leadership styles Sub- variables and overall Job-satisfaction
of subordinates. Thus table below clearly shows R Square values of the three models
used to check the hypotheses. The change in the R squared statistic that is produced by
adding or deleting an independent variable. Because of the R squared change associated
with a variable is large, that means that the variable is a good predictor of the dependent
variable. (0.462, 0.482 and 0.506)
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Table 68: Model summary for Leadership styles and overall Job-satisfaction
Model Beta R Square change Sig. F change Individualized consideration 0.599 0.498 0.000Inspirational motivation 0.677 0.498 0.000Idealized Influence -0.474 0.498 0.000
a. Predictors: (constant), Individualized consideration, Inspirational Motivation and Idealized Influence.
A Multiple regression analysis (stepwise) was carried out. Thus table clearly shows R
Square values of the two models used to check the hypotheses and Thus table clearly
shows that the relationship between the two variables is significant (P=0.000). This is the
change in the R squared statistic that is produced by adding or deleting an independent
variable. Because of the R squared change associated with a variable is large, that means
that the variable is a good predictor of the dependent variable. (0.498)
Table 69: Coefficients for Leadership styles and overall Job-satisfaction
Coefficientsa
.779 .138 5.642 .000
.543 .074 .498 7.358 .000
.695 .119 .677 5.832 .000
-.514 .119 -.474 -4.311 .000
(Constant)
IndividualizedConsideration mean
Inspirational Motivation
Idealized influence mean
Model3
B Std. Error
UnstandardizedCoefficients
Beta
StandardizedCoefficients
t Sig.
Dependent Variable: overall Jobsatisfactiona.
According to the multiple linear regression analysis the relationship between Leadership
styles and overall Job-satisfaction. Thus table clearly shows that the inter-relationship
between Inspirational motivation, Individualized consideration and Idealized Influence
and also shows that those three variables has significant relationship between work
conditions. (P=0.000, P=0.000, P=0.000). Further it is evident that both Individualized
consideration and intellectual Stimulation and Individualized consideration Beta values
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shows a correlation with overall Job-satisfaction (Beta=498, Beta=0.677 and Beta=-
0.474)
Table 70: Coefficients for Leadership styles and overall Job-satisfaction
Excluded Variables Beta In t Sig. F change Intellectual stimulation 0.144 1.823 0.069
a. Predictors in the Model: ( Constant), Individualized Consideration
b. Dependent Variable: Over all Job-satisfaction
According to the multiple regression model only Intellectual Stimulation was rejected
and the rest were identified to have significant relationship between overall Job-
satisfaction.
Therefore the multiple regression analysis identified significant inter-relationship
between Inspirational motivation, Idealized influence and Individualized consideration
and also significant relationship between overall Job-satisfaction as well. And Intellectual
Stimulation was identified to have no relationship between overall Job-satisfaction
5.7 Summary of chapter 5
Chapter 5 deals with the analysis of the data set. The analysis was conducted using SPSS
13.0. At first descriptive frequencies were used to analyse the various characteristics of
the dataset. Next reliability testing was conducted in order to check whether all variables
had an appropriate alpha value. Finally Simple and Multiple linear Regression analysis
and ANOVA were conducted to check whether the hypotheses used were significant.
This chapter reveled that there is a positive relationship between transformational
leadership styles and Job-satisfaction of subordinates (B=0.647, R Square=0.418,
P=0.000). Further more the sub-variables of both transformational leadership styles
(independent) and Job-satisfaction (dependent) showed positive relationship with each
other. And manager’s demographic variables such as age, gender, educational level,
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experience and income and subordinates job-satisfaction did not show any significant
relationship between each other.
CHAPTER 6
6.0 Discussion and Implications
6.1 Introduction to the chapter
This section will deal with the significant or alternate hypotheses that were accepted and
will provide a summarized discussion of all the hypotheses used in this study.
6.2 Discussion and findings
The first research question is concerned with relationship between Transformational
leadership styles such as Idealized Influence, Inspirational motivation, Intellectual
Stimulation, Individual consideration of mangers and subordinates Job-satisfaction such
as supervision, salary, and work condition and career opportunities. The result suggests
that the studied Transformational leadership styles have significant relationship with Job-
satisfaction of subordinates and sub-scales. Each one of these Transformational
leadership styles will accordingly be discussed.
6.3 Idealized Influence
According to the simple linear regression analysis this study Idealized Influence
leadership styles showed significant relationship with the subordinates Job-satisfaction
sub-scale and total Job-satisfaction. And the regression analysis identified the
relationship between Idealized Influence and over all job-satisfaction (Beta=0.576,
P=0.000) significant relationship and regression analysis carried out with sub-sales of
Job-satisfaction such as supervision, salary, and work condition and career opportunities
found out (Beta=0.951, P=0.000), (Beta=0.485, P=0.000), (Beta=0.411, P=0.000) and
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(Beta=0.469, P=0.000).This clearly goes in line with the findings of Medley &
Larochelle, (1995), Dunham-Taylor, (2000) and according to the meta analysis identified
the relationship between idealized influence and Job-satisfaction showed correlation
coefficients of 0.90 .
Multiple linear regression analysis identified the relationship between Idealized Influence
and over all job-satisfaction (P=0.000) significant relationship and regression analysis
carried out with sub-sales of Job-satisfaction such as supervision, salary, and work
condition and career opportunities found out that Idealized influence had significant
positive relationship with only work condition and the rest of the sub variables such as
supervision, salary, and career opportunities of Job-satisfaction did not have relationship.
And overall Idealized influence has significant relationship with overall Job-satisfaction
of subordinates
Therefore the linear regression analysis proves that Idealized Influence leadership styles
seem to have significant statistically relationship with subordinates Job-satisfaction and
in particular work conditions in Sri Lankan banking sector.
6.4 Inspirational motivation
Similar to Idealized Influence, Inspirational motivation leadership styles showed
significant relationship with the subordinates Job-satisfaction sub-scale and total Job-
satisfaction. And the simple Linear regression analysis found out to identify the
relationship between Idealized Influence and over all job-satisfaction (Beta=0.651,
P=0.000) significant relationship and regression analysis carried out with sub-sales of
Job-satisfaction such as supervision, salary, and work condition and career opportunities
found out (Beta=0.705, P=0.000), (Beta=0.498, P=0.000),( Beta=0.525, P=0.000) and
(Beta=0.549, P=0.000).This clearly goes in line with the findings of Morrison (1997),
Pollock (1998.) and according to the meta analysis identified the relationship between
Inspirational motivation and Job-satisfaction showed correlation coefficients of 0.75.
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And the multiple linear regression analysis identified the relationship between
inspirational motivation and over all job-satisfaction (Beta=0.677, P=0.000) significant
relationship and regression analysis carried out with sub-sales of Job-satisfaction such as
supervision, salary, and work condition and career opportunities found out that
Inspirational motivation had significant positive relationship with only work condition
and the rest of the sub variables such as supervision, salary, and career opportunities of
Job-satisfaction did not have relationship. And overall Inspirational motivation has
significant relationship with overall Job-satisfaction of subordinates.
Therefore Inspirational motivation leadership styles seem to have significant statistically
relationship with subordinates Job-satisfaction and it sub-scales in particular work
condition had a positive relationship of banking sector in Sri Lanka.
6.5 Intellectual stimulation
Intellectual stimulation leadership styles showed significant relationship with the
subordinates Job-satisfaction sub-scale and total Job-satisfaction. And the simple linear
regression analysis identified the relationship between Intellectual stimulation and over
all job-satisfaction (Beta=0.578, P=0.000) significant relationship and regression analysis
carried out with sub-sales of Job-satisfaction such as supervision, salary, and work
condition and career opportunities found out (Beta=0.712, P=0.000), (Beta=0.482,
P=0.000),( Beta=0.388, P=0.000) and (Beta=0.488, P=0.000).This clearly goes in line
with the findings of Bass (1997), Medley & Larochelle, (1995), Dunham-Taylor, (2000)
and according to the meta analysis identified the relationship between Intellectual
stimulation and Job-satisfaction showed correlation coefficients of 0.73
And the multiple linear regression analysis found out the relationship between
Intellectual stimulation and over all job-satisfaction (P=0.069) which reveled an
insignificant relationship and regression analysis carried out with sub-sales of Job-
satisfaction such as supervision, salary, and work condition and career opportunities
found out supervision and salary had a positive relationship with Intellectual Stimulation.
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and work condition and career opportunities did not have significant relationship with
Intellectual Stimulation.
Intellectual stimulation leadership styles therefore seem to have significant with
subordinates Job-satisfaction and it sub-scales (Supervision and Salary) of banking sector
in Sri Lanka.
6.6 Individualized consideration
In this study Individualized consideration leadership styles showed significant
relationship with the subordinates Job-satisfaction sub-scale and total Job-satisfaction.
And the simple linear regression analysis identified the relationship between
Individualized consideration and over all job-satisfaction has (Beta=0.679, P=0.000)
significant relationship and regression analysis carried out with sub-sales of Job-
satisfaction such as supervision, salary, and work condition and career opportunities
found out (Beta=0.746, P=0.000), (Beta=0.543, P=0.000),( Beta=0.489, P=0.000) and
(Beta=0.599, P=0.000).This clearly goes in line with the findings of Northouse (2001)
Dunham-Taylor, (2000) and Sorrentino. (1992) and according to the Meta analysis
identified the relationship between Individualized consideration and Job-satisfaction
showed correlation coefficients of 0.81.
And the multiple linear regression analysis also found out the relationship between
Individualized consideration and over all job-satisfaction (Beta=0.679, P=0.000)
significant. Regression analysis carried out with sub-sales of Job-satisfaction such as
supervision, salary, and work condition and career opportunities also found out a positive
relationship all the sub-variables of Job-satisfaction and Individualized consideration
(Beta=0.746, P=0.000), (Beta=0.543, P=0.000),( Beta=0.525, P=0.000) and (Beta=0.599,
P=0.000).
Individualized consideration leadership styles therefore seem to have significant
statistically relationship with subordinates Job-satisfaction and it sub-scales of banking
113
sector in Sri Lanka. Further the multiple linear regression analysis conformed that
Individualized consideration leadership styles showed significant relationship with the
subordinates Job-satisfaction sub-scale and total Job-satisfaction of subordinates.
6.7 Transformational leadership style
According to a Meta-Analysis Results found out that all four Transformational leadership
styles had significant relationship between subordinates Job-satisfaction the numbers are
correlation coefficients. The higher the number the stronger the relationship between the
behavior and performance outcome (0.40). And each of transformational leadership styes
dimensions Idealized influence (0.90), Inspirational motivation (0.75), Intellectual
stimulation (0.83) and Individualized consideration (0.92) showed positive or strong
relationship with subordinates Job-satisfaction. A summary of key findings from a meta-
analysis of 49 leadership studies published in 2002 is available in appendix.
Finally study showed significant relationship with Transformational leadership style and
Subordinates Job-satisfaction sub-scale and total Job-satisfaction a simple an multiple
linear regression analysis were carried out to identify the Transformational leadership
style and over all job-satisfaction of subordinates. And the relationship between the two
variables was significant (P=0.000). Further it is evident that Transformational leadership
style has a 64% correlation with over all job-satisfaction of subordinates (Beta=0.647).
However R Square is highly significant.
This clearly goes in line with the findings of Medley & Larochelle, 1995, Dunham-
Taylor, 2000, Shieh et al., 2001. Shieh. (2001), Morrison (1997), Pollock (1998), Schultz,
Greenly & Brown (1995), Northouse (2001) and Sorrentino et al. (1992).
Transformational leadership style therefore seems to have significant statistically
relationship with subordinates Job-satisfaction and it sub-scales of banking sector in Sri
Lanka.
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6.8 Demographic variables of managers
The Second research question is concerned with relationship between demographic
variables such as age, gender, experience, educational level and income level of mangers
and subordinates Job-satisfaction. The result suggests that the studied demographic
variables have no significant relationship with either Job-satisfaction or sub-scales or
total Job-satisfaction. Each one of these demographic variables will accordingly be
discussed.
According to Ogshahemi (2001) He found that approximately half (51.9%) of bank
subordinates are satisfied with the behaviours of their managers while about a third
(23%) are dissatisfied. Through regression analysis, he found that age and length of
service in higher education were important in explaining an academic’s satisfaction or
dissatisfaction with the behaviours of their managers
In this study age showed no significant relationship with any of the Job-satisfaction sub-
scale or total Job-satisfaction. This finding is on contrast to by Kakabadse et al. (1998)
and Ogshahemi (2001) who reported that who reported a positive correlation between age
and affecting Job-satisfaction. The current non-significant findings are similar to what
was reported by Hawkins (1998) and Colbert and Kwon’s (2000). Age therefore seem to
have no significant statistically significant relationship with subordinates Job-satisfaction
of banking sector in Sri Lanka.
Similar to age, gender showed no significant influence on the subordinate’s job-
satisfaction of respondents in this study. This finding is in with similar reports by
Kalderberg (1995) and Hawkins (1998). This findings differs form popular belief and
report by Mathieu and Zajac (1990) as well as Wahn (1998) and Ogshahemi (2001) who
reported that woman have higher Job-satisfaction than men. Gender therefore seems to
have no significant statistically significant relationship with subordinates Job-satisfaction.
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The level of Experience, Income level and educational level of mangers also showed no
significant difference in the Job-satisfaction of respondents. This was despite the
expectation that managers with higher education levels, experience and income levels
would crate better Job-satisfaction for subordinates. These findings are contrast according
Ogshahemi (2001). But go in line with popular belief and report by Darwish Yousef
1998) as well as Wahn (1998), Hogan (2001) and Kakabadse (1999). who reported that
while the managers Experience, Income level and educational level had no significant
relationship with subordinates Job-satisfaction. Therefore no significant statistically
relationship were found between the demographic variables and subordinates Job-
satisfaction
The study shows that transformational leadership styles that are perceived as of a Job-
satisfaction to its subordinates are positively associated with all sub-scales and overall
Job-satisfaction. With personal development of subordinates such as supervision, salary,
work condition and career opportunities were essential in satisfaction of subordinates and
therefore mangers should forces they leadership styles on these variables to satisfy the
subordinates.
From this study, it appears that demographic variables of manager’s personal factors do
not have a statistically significant role in the subordinate’s job-satisfaction in Sir Lanka
the banking setting. This is important as mangers in banks should rather focus on
Leadership and employee variables in an attempt to build the right leadership style.
Overall several relationships were identified this research. Also there were strong
relationships between Transformational leadership and subordinates Job-satisfaction in
the Sri Lankan banking sector context.
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6.9 Competitive Comparison Private and Public banks
Public BankPrivate Bank
Bank type
120
100
80
60
40
20
0
Co
un
t
Frequenntly
Fairly often
Sometimes
Once in a while
Not at all
Idealizedinfluence mean
Bar Chart
Figure 22: Idealized Influence competitive comparison
117
Public BankPrivate Bank
Bank type
125
100
75
50
25
0
Co
un
t
Frequenntly
Fairly often
Sometimes
Once in a while
Not at all
InspirationalMotivation
Bar Chart
Figure 23: Inspirational Motivation competitive comparison
Public BankPrivate Bank
Bank type
120
100
80
60
40
20
0
Co
un
t
Frequenntly
Fairly often
Sometimes
Once in a while
Not at all
IntellectualStimulation mean
Bar Chart
Figure 24: Intellectual Stimulation competitive comparison
118
Public BankPrivate Bank
Bank type
120
100
80
60
40
20
0
Co
un
t
Frequenntly
Fairly often
Sometimes
Once in a while
Not at all
IndividualizedConsideration
mean
Bar Chart
Figure 25: Individualized consideration competitive comparison
Public BankPrivate Bank
Bank type
120
100
80
60
40
20
0
Co
un
t
Strongly Agree
Agree
Neither agreeNor Disagree
Disagree
StronglyDisagree
overallJobsatisfaction
Bar Chart
119
Figure 26: Overall Job-satisfaction competitive comparison
The competitive comparison looks into the leadership styles are most commonly adopted
by managers in banks. The banks considered here are only private and public banks and
there were 240 respondents from private banks and 148 respondents were from public
bank.
According to the competitive comparison bar charts it is very clear that Idealized
influence, Inspirational motivation and Individualized consideration aspect of leadership
styles there is a comparatively higher percentage of respondents who have voted towards
the positive side of private banks and public banks which means these three leadership
styles were fairly often used by managers in both private and public banks.
And in the Intellectual Stimulation leadership style the respondents from both private and
public banks respond reveled the following:
Table 57: Public and private banks Leadership styles
Banks Moderate Fairly often
Private 43% 45%
Public 38% 40%
Source: Questionnaires analysis
Therefore according to the respondents we can say Intellectual Stimulation leadership
style was percent or used by managers in both banks but not has frequently used as other
three leadership styles.
And Overall Job-satisfaction competitive comparison bar chart shows that subordinates
are satisfied in both private and public banks. And are satisfied with the leadership styles
used by their managers as well. Therefore based the study we can say all four
transformational leadership styles are present among in both private and public bank
managers in Sri Lankan banking sector Idealized influence, Inspirational motivation and
120
Individualized consideration are most commonly used by mangers and Intellectual
Stimulation is not much used by them but it is used by some managers.
6.10 Summary of Chapter 6
This chapter discusses the results of the regression analysis for each and every variable
and detailed discussion of the past research finding with this study was cared out. It also
provides a competitive analysis Transformational leadership styles used in the banking
industry
CHAPTER 7
7.0 Recommendations
7.1 Introduction to this chapter
The results of this study can be used by the Managers or leaders practitioners in the Sri
Lankan Commercial banking industry in order to succeed or have the right combination
of Practices that would directly lead the bank to improved subordinates Job-satisfaction
and performance.
The findings of the study suggested that having Transformational Leadership Practices
lead to better Job-satisfaction. Thus it is important for Managers to have pre planned out
the staffing needs of the bank and maintain an adequate level of people. Further the study
121
also confirmed that manager’s leadership styles have a positive relationship with over all
Job Satisfaction. Thus Managers should look into leadership matters of the banks through
the Job satisfaction of the employees’ point of view. This can be done by having fair pay
and rewards, create suitable work conditions, provide clear career advancement programs
and provide better supervision.
7.2 Recommendations on Idealized Influence
When considering Idealized Influence the respondents agree that overall manager’s have
adopted this leadership style. Based on the findings it can be said the Idealized Influence
was frequently adopted by managers and subordinates were happy with this leadership
style. However, they also identified that managers with Idealized Influence needed to
improve their career opportunities programs and salary and supervision. Therefore it
would be beneficial for managers if they developed these three areas of Idealized
Influence leadership style. This could be achieved by investing more on career
development and training programs for both managers and subordinates in banks.
This could be supported by developing systems to confirm that the subordinates of their
career opportunity programs and benefits and reward programs in banks if they perform
or meet specific targets. Further the managers must concentrate more in-terms of
supervision and leadership and the manager should inspire individuals to achieve their
specific targets. Supervision could be increased by having a limited number of
subordinates under your command this will give the manager enough time to supervise
each subordinates more closely.
7.3 Recommendations on Inspirational motivation
And Inspirational motivation had significant correlation with subordinates Job-
satisfaction. Thus it was evident that Inspirational motivation had a highly significant
relationship with Job satisfaction of the employees. Thus managers should look into ways
how they can motivate their subordinate’s and Inspirational Motivational mangers should
looking in areas such as motivating subordinates through rewards or higher Salary and
career opportunities provide the subordinates with monitory and non- monitory reward
122
when they achieve their objectives or consistently perform well. And the manager should
build the subordinates team playing abilities and also should consider the salary and
career opportunities which are highly important factor which brings out Job satisfaction.
This could be achieve by providing subordinates better work condition this can be and
providing them with realistic Job previews so that the subordinates can get a good idea of
how the job would be like what exactly is required of them and try to meet those
objectives.
7.4 Recommendations on Intellectual stimulation
The findings of the study suggested further that Intellectual stimulation leadership style
has insignificant effect on Job-Satisfaction. Further the study confirmed that Intellectual
stimulation have a positive relationship with two of the sub variables of Job Satisfaction.
Therefore Managers should create a work condition where the manager stimulating the
followers to think through issues and problems for themselves and thus to develop their
own abilities. This could be hard because where many managers favor a ‘telling’
approach. Supervision should be eased and the work condition has to be improving to
adopt this culture. Further the managers must concentrate inspirational supervision and
the manager should inspire individuals to achieve their specific targets. Some sort of
career development program should be incorporated in banks or by managers so that
subordinates would know where they want to be in future and so would try to achieve
those objectives.
And also managers and banks should create an organizational culture (work condition)
where new ideas and creative problems solutions are solicited from followers, who are
included in the process of addressing problems and finding solutions. Followers should
be encouraged to try new approaches, at the same time their ideas should not be criticized
because they differ from the leaders’ ideas. Therefore the managers should create team
based culture where all of the above mentioned can be achieved.
7.5 Recommendations on Individualized consideration
123
Individualized consideration was another factor that had a highly significant relationship
with subordinates Job-satisfaction according to the study. Individualized consideration
leadership styles adopted by managers of the banks should be flexible and must consider
each and every individual’s need and further based on these finding they should design
the jobs to subordinates in order to make maximum utilization of the employee’s abilities.
Hence the results of the study also claimed that Individualized consideration had a highly
significant relationship with Job Satisfaction of the subordinates. Thus the managers
should encourage team work; and also the subordinates should be involved in setting
performance targets. This way the employees would be motivated to work and get
satisfaction from their work. In addition to that managers should make sure that
subordinates are trained and monitored better supervision is required so that they will
have an adequate level of proficiency in their jobs which would lead to Job Satisfaction
of the subordinates.
7.6 Over all recommendations to Banks and Mangers to build transformational
leadership style
In addition this study also confirmed that relationship between subordinates Job-
satisfaction and Transformational Leadership styles seemed to have a highly significant
correlation between them. And Transformational leadership styles include the four I’s
which are Idealized influence, Inspirational motivation, Intellectual Stimulation and
Individualized consideration and according the research finding Job-satisfaction and
Intellectual stimulation had a relationship but was comparatively lower other three
leadership styles.
So the managers in Sri Lankan context lack Intellectual stimulation. And furthermore
subordinates Job-satisfaction depends on four major variables which are supervision,
salary, work condition and career opportunities.
124
As a result Managers should maintain a good level of motivation towards the employees.
Maintain better communication channels in the bank between managers and subordinates
and also the banks should have fair and consistent discipline, grievance, reward and
promotional procedures. The results of the study also produced a highly significant
relationship between Job satisfaction and Relations at work and others. For this purpose
mangers should promote good relations and high morale at work by continuously
encouraging the staff with their jobs and giving them a friendly atmosphere to work
around.
And banks could distribute MLQ to subordinates and analyze the questionnaire through
that they could identify which transformational leadership behaviours are lacking in
managers and than take necessary steps like training, workshops, coaching and
counseling could be provided to the manager which could create a platform to learn and
improve their existing transformational leadership style even more. And with regards to
the evidence, organizations, such as banks, will benefit by actively training their
managers to acquire transformational leadership qualities and skills.
Therefore if the Mangers leadership style could guarantee the fulfillment of the above
mentioned leadership styles the banks should be able to assure better performance and
high Job Satisfaction of the subordinates.
7.7 Summary of Chapter 7
This chapter provides recommendations on how to improve the Leadership styles in the
banking industry.
125
CHAPTER 8
8.0 Conclusions and Future Research
8.1 Summary of key finding of the research
The main purpose of this study was to identify the relationship between transformational
leadership styles and Job-satisfaction of subordinates and the finding show that there is a
positive relationship between these tow variables (B=0.647,R square=0.418,P=0.000).
Further more the sub-variables of both transformational leadership styles (independent)
and Job-satisfaction (dependent) showed positive relationship with each other. And
manager’s demographic variables such as age, gender, educational level, experience and
income and subordinates job-satisfaction did not show any significant relationship
between each other.
126
And according to the subordinates response to the questionnaire it was evident that
Idealized influence, Inspirational motivation and Individualized consideration leadership
behaviours were mostly used by managers in banks and Intellectual stimulation was
present but not used an much as other leadership styles. And further this was the case in
both private and public commercial banks.
8.2 Conclusion
The purpose of this research was to understand the Influences of Transformational
leadership styles on subordinates Job-satisfaction of a sample from the Sri Lankan service
industry’s Banking sector.
Initial secondary research was conducted by referring journal articles and books on the
subject of leadership style in different service settings. Reading was also carried out in
the realm of Job-satisfaction aspects of Subordinates/employees. Following this study a
conceptual framework was developed to study the Sri Lankan market. The conceptual
framework was in 2 parts one measuring Transformational Leadership style while the
other measured Subordinates Job-satisfaction
The literature review and survey study results have proven that the Transformational
leadership style and Demographic characteristics of managers have a positive relationship
with the subordinates Job-satisfaction. The study further found which Transformational
leadership style sub variables or sub leadership styles have positive relationships with
subordinates Job Satisfaction. And their was no significant relationship between
managers demographic characteristic and subordinates Job-satisfaction in the Sri Lankan
Banking sector context.
Leadership styles were measured using the researched Multifactor Leadership Model
(MLQ) developed by Bass 1985 which included Idealized Influence, Inspirational
motivation, Intellectual stimulation and Individualized consideration. Subordinates Job-
127
satisfaction was measured according to supervision, salary, and work condition and
career opportunities.
A questionnaire was used to gather information for the research. The sample was derived
from the banks employees and managers’ population living in the Colombo and greater
Colombo areas. 450 questionnaires were distributed and 388 were used for the analysis.
The SPSS software was used as the statistical tool in the analysis. Linear regression,
reliability tests and various other statistical tools were used to derive the results.
The research objectives set out were achieved. It was able to establish relationships
between Transformational leadership styles and subordinates Job-satisfaction. Thus the
study would be able to help the Managers and leaders to make the right decisions in their
policies and procedures towards subordinates and to invest on the practices that actually
lead to subordinates Job-satisfaction and Performance. Hence they can also use the
results of the study to competitive advantage in this highly competitive commercial
banking sector of Sri Lanka.
Further the study was able to achieve its objectives successfully by being able to measure
Transformational Leadership Style of the Sri Lankan Banking Industry in terms of
subordinates Job Satisfaction. Also it was possible to examine the impact of Leadership
Style adopted by managers on subordinates Job-satisfaction of the Commercial Banks.
Further this study was able identify the relationship between Leadership Style and
demographic characteristics of manager’s with the selected dependent variables of Job-
satisfaction in the commercial banking industry.
Therefore based the study we can say all four Transformational leadership styles are
present among in both private and public bank managers in Sri Lankan banking sector but
Idealized influence, Inspirational motivation and Individualized consideration are most
commonly and Intellectual Stimulation leadership style is not much used by managers.
128
8.2 Further Research
As this study is limited to only the commercial banking industry of Sri Lanka and the
results are limited to this industry alone. Thus future research could be carried out in
other service and manufacturing industries. Further the developed model in the study can
be upgraded according to the measures and practices of the respective industry.
Research could also be built to test the impact of Leadership styles on subordinates Job-
performance, commitment and Job stress. And use several actual financial aspects of the
organizations performance instead measuring through the views of the employee’s point
of view. This might result in a much more accurate analysis of the study.
Several published studies indicate that female leaders are more likely to be identified as
transformational leaders than are their male counterparts (Avolio & Bass, 2004; Bass;
Eagly, 2003; Padde, 1995; Roueche, 1989). Given the geographic limitation of the
Colombo and grater Colombo, the study could be conducted nationwide in order to
determine if gender is related to leadership style.
Future research should evaluate the association of leadership style with age and Years of
supervisory experience, of leadership style with gender and years of supervisory
experience and of leadership style with ethnicity and years of supervisory experience
129
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APPENDIX A (Questionnaire)
QUESTIONNAIRE
Dear respondent the purpose of this Questionnaire is to identify the type of
Transformational leadership behaviors adopted by Sri Lankan banking managers
and it impact on the subordinates Job Satisfaction This study is conducted by
Student No: CB001607 of Asia Pacific Institute of Information Technology (APIIT)
for his final year research in BA (Hons) in Business Administration.
141
I would greatly appreciate your participation in this research. Anonymity of
personal information provided would be withheld. Thank you for your Co-
operation.
1. What is your gender? 2. What is your age?
3. Educational Level 4. Income Level
5. Experience in the industry or in Banking 6. Designation
SECTION 2
Please judge how often each statement fits your current manager. If you are not sure or
do not know, leave the answer blank, please use the following rating scale. Put a ( ) in
the box under the best statement that fits your perception on the following statements.
The scale stands for the following statements:
1- Not at all, 2- Once in a while, 3- Sometimes, 4- Fairly often, 5- Frequently
1 2 3 4 5
Age ( )25 or under.26 - 4041 - 5556 or older
Gender ( )MaleFemale
Income level ( )
Below 1500015001-2500025001-3500035001-4500045001-5500055001 & above
Education level. ( )O/LA/L
UndergraduateGraduatePost GraduateProfessional
Experience level. ( )
Less than 2 yearsBetween 2-5 yearsBetween 5-10 yearsBetween 10 to 15 years Between 15- 25 years More than 25 years
Designation level. ( )TraineeBanking AssistantExecutive (Snr/Jnr)ManagerRegional ManagerOther
142
1 Talks to us about his/her most important values and beliefs
2 The manager sets high standards of work
3 Treats me as an individual rather than just a member of a group
4 Emphasizes the importance of being committed to our beliefs
and norms.
5 The manager envisions exciting new possibilities in work
6 Re-examines critical assumptions to question whether they are
appropriate and relevant.
7 Listens carefully to my concerns and ideas
8 Specifies the importance of having a strong sense of purpose in
work
9 Talks optimistically about the future
10 Encourages us to rethink ideas which had never been questioned
11 Provides useful advice for my development and career
12 Considers the moral and ethical consequences of his/her actions
13 Express his/her confidence that we will achieve our goals
14 Questions the traditional ways of doing things
15 Focuses me on developing my strengths
16 The manager displays conviction in his/her ideals, beliefs, and
standards
17 Provides continuous encouragement
18 Seeks differing perspectives when solving problems
19 Spends time teaching and coaching me
20 Takes a stand on difficult issues
21 Focuses my attention on “what it takes” to be successful
22 Suggests new ways of looking at how we do our jobs
23 Treats each of us as individuals with different needs, abilities and
aspirations
24 Clarifies the central purpose underlying our actions
25 Talks enthusiastically about what needs to be accomplished
26 Encourages me to express met to ideas and opinions
143
27 Teach me how to identify the needs and capabilities
28 Talks about how trusting each other can help us to overcome our
difficulties and achieve our goals
29 Makes aware of essential work related issues
30 Emphasizes the importance of having a collective sense of
mission
31 Articulates a compelling vision of the future
32 Gets me to look at problems from different angles and
perspectives
33 Promotes self-development
34 Behaves in ways that are consistent with his/her expressed values
and beliefs
35 Shows determination to accomplish what he/she sets out to do
36 Encourages non-traditional thinking to deal with traditional
problems
37 Gives personal attention to members who seem neglected
38 Encourages addressing problems by using reasoning and
evidence, rather than unsupported opinion.
SECTION 3
The following are your judgements about the overall Job satisfaction and your level of
satisfaction with your manager, and which factors are important in being satisfied,Put a (
) in the box under the best statement which fits your answer.
Note: The scale for the rest of the questions in this section stands for
144
1- Strongly Disagree, 2- Disagree, 3- Neither agree Nor Disagree, 4- Agree, 5- Strongly
Agree
Supervision 1 2 3 4 5
1 Does the manager of the organization have leadership skills
2 Do they treat individuals fairly
3 Do you feel that you can trust your managers
4 Do the managers of organization give positive feedback to
employees
5 Does the organization have a consistent, timely and fair method
for evaluating individual performance of employees
Salary 1 2 3 4 5
1 Are the amount of pay received, the perceived equity of the pay and
the method of payment adequate?
2 Are the benefits of the organization similar to what other offices in
your area offer
3 Does the organization have clear policies related to salaries,
increments and bonuses
Working Condition and Work itself 1 2 3 4 5
1 Are the equipment of the organization (everything from
computers to scales) in proper conditions
2 Are the organizations facility up to date
3 Are office conditions comfortable
4 Do employees have adequate space
5 Do you perceive that the work you do is meaningful
6 Do your managers communicate their appreciation of your work
to the organization
Achievement and Career development 1 2 3 4 5
1 Do you have clear, achievable goals and standards for your position
145
2 Do you receive regular, timely feedback on how you are performing
3 Are your talents being utilized for the fullest by your manager
4 Are you adequately challenged in your work
5 Are you being rewarded for your loyalty
6 Are you being rewarded based on your performance
7 Does your manager promote from within, when organization
appropriate
8 Does your manager support continuing education and personal
growth
9 Does the organization have a consistent, timely and fair method for
evaluating individual performance of employees
THANKYOU FOR YOUR CO-OPERATION
QUESTIONNAIRE
Dear respondent the purpose of this Questionnaire is to identify the type of
Transformational leadership behaviors adopted by Sri Lankan banking managers
and it impact on the subordinates Job Satisfaction This study is conducted by
Student No: CB001607 of Asia Pacific Institute of Information Technology (APIIT)
for his final year research in BA (Hons) in Business Administration.
146
I would greatly appreciate your participation in this research. Anonymity of
personal information provided would be withheld. Thank you for your Co-
operation.
1. What is your gender? 2. What is your age?
3. Educational Level 4. Income Level
5. Experience in the industry or in Banking
THANKYOU FOR YOUR CO-OPERATION
APPENDIX B: Meta-Analysis Results
The following is a summary of key findings from a meta-analysis of 49 leadership studies
published in 2002. The numbers are correlation coefficients. The higher the number the
stronger the relationship between the behavior and performance outcome.
Age ( )25 -3535 – 4545 - 5556 or older
Gender ( )MaleFemale
Income level ( )
25001-3500035001-4500045001-5500055001 & above
Education level. ( )O/LA/L
UndergraduateGraduatePost GraduateProfessional
Experience level. ( )
Between 2-5 yearsBetween 5-10 yearsBetween 10 to 15 years Between 15- 25 years More than 25 years
147
Appendixes
Correlations Found between Leadership Behaviors & Organizational Commitment for
All Valid Participating Organizations
148
Subordinates Job-satisfactionR R
Square
Sig.
Transformational Leadership 0.472 0.223 0.000
Charisma (Attributed) 0.359 0.129 0.000
Idealized Influence (Behavior) 0.395 0.156 0.000
Inspirational Motivation0.378 0.143 0.000
Intellectual Stimulation 0.338 0.114 0.000
Individual Consideration 0.377 0.142 0.000
Transactional Leadership 0.461 0.213 0.000
Contingent Reward 0.355 0.126 0.000
Management by Exception
(Active)
0.296 0.088 0.000
Management by Exception
(Passive)
0.284 0.080 0.000
Laissez-faire 0.354 0.126 0.000
Source: Li-Yueh Chen, Nova Southeastern University
An Examination of the Relationship between Leadership Behavior and Organizational Commitment at Steel Companies
APPENDIX C: Approval Page
149
Approval of the Project Manager
Mr. Syed Rehan
I certify that this thesis satisfies the requirement as a thesis for the degree of BA (Hons)
in Business Administration
Dr. Kennedy
I certify that I have read this thesis and that in my opinion it’s fully adequate in scope and
quality as a thesis for the degree of BA (Hons) in Business Administration
Mrs. Kanchanie Jayawardena
APPENDIX D
Reliability Analysis
150
Idealized Influence
Reliability Statistics
.912 .911 10
Cronbach'sAlpha
Cronbach'sAlpha Based
onStandardized
Items N of Items
Item Statistics
3.19 1.093 388
3.43 1.115 388
3.60 1.108 388
3.21 .947 388
3.24 1.147 388
3.38 1.108 388
2.95 1.119 388
3.39 1.128 388
3.40 1.070 388
3.02 1.086 388
Idealized Influence
Idealized Influence
Idealized Influence
Idealized Influence
Idealized Influence
Idealized Influence
Idealized Influence
Idealized Influence
Idealized Influence
Idealized Influence
Mean Std. Deviation N
Item-Total Statistics
29.62 56.179 .561 .473 .910
29.37 54.276 .673 .617 .903
29.21 53.545 .728 .667 .900
29.59 56.831 .619 .529 .906
29.57 54.815 .615 .581 .907
29.43 52.158 .824 .745 .894
29.86 53.150 .746 .634 .898
29.42 52.466 .786 .708 .896
29.41 53.808 .741 .639 .899
29.78 57.328 .490 .465 .914
Idealized Influence
Idealized Influence
Idealized Influence
Idealized Influence
Idealized Influence
Idealized Influence
Idealized Influence
Idealized Influence
Idealized Influence
Idealized Influence
Scale Mean ifItem Deleted
ScaleVariance if
Item Deleted
CorrectedItem-TotalCorrelation
SquaredMultiple
Correlation
Cronbach'sAlpha if Item
Deleted
Scale Statistics
32.81 66.575 8.159 10Mean Variance Std. Deviation N of Items
Inspirational Motivation
151
Reliability Statistics
.920 .922 10
Cronbach'sAlpha
Cronbach'sAlpha Based
onStandardized
Items N of Items
Item Statistics
3.47 1.077 388
3.28 1.222 388
3.37 1.203 388
3.77 1.194 388
3.79 1.266 388
3.23 1.096 388
3.25 1.123 388
3.42 1.100 388
3.02 .912 388
3.32 1.069 388
Inspirational Motivation
Inspirational Motivation
Inspirational Motivation
Inspirational Motivation
Inspirational Motivation
Inspirational Motivation
Inspirational Motivation
Inspirational Motivation
Inspirational Motivation
Inspirational Motivation
Mean Std. Deviation N
Item-Total Statistics
30.43 60.928 .728 .662 .910
30.62 60.680 .638 .586 .916
30.53 60.224 .678 .518 .913
30.13 60.509 .667 .634 .914
30.11 58.104 .757 .663 .909
30.67 61.540 .673 .587 .913
30.65 61.111 .680 .674 .913
30.48 60.302 .750 .647 .909
30.88 63.209 .709 .593 .912
30.58 60.756 .745 .726 .910
Inspirational Motivation
Inspirational Motivation
Inspirational Motivation
Inspirational Motivation
Inspirational Motivation
Inspirational Motivation
Inspirational Motivation
Inspirational Motivation
Inspirational Motivation
Inspirational Motivation
Scale Mean ifItem Deleted
ScaleVariance if
Item Deleted
CorrectedItem-TotalCorrelation
SquaredMultiple
Correlation
Cronbach'sAlpha if Item
Deleted
Scale Statistics
33.90 74.323 8.621 10Mean Variance Std. Deviation N of Items
Intellectual Stimulation
152
Reliability Statistics
.894 .894 9
Cronbach'sAlpha
Cronbach'sAlpha Based
onStandardized
Items N of Items
Item Statistics
3.28 1.133 388
3.37 1.132 388
2.98 1.146 388
3.31 1.239 388
3.37 1.119 388
3.38 1.145 388
3.27 1.150 388
2.78 1.129 388
3.43 1.228 388
Intellectual Stimulation
Intellectual Stimulation
Intellectual Stimulation
Intellectual Stimulation
Intellectual Stimulation
Intellectual Stimulation
Intellectual Stimulation
Intellectual Stimulation
Intellectual Stimulation
Mean Std. Deviation N
Item-Total Statistics
25.89 47.613 .633 .456 .884
25.80 48.625 .562 .527 .889
26.19 48.823 .540 .385 .891
25.86 44.919 .742 .666 .875
25.80 45.901 .768 .671 .873
25.79 46.515 .701 .634 .878
25.90 46.552 .696 .653 .879
26.39 47.257 .661 .569 .882
25.74 47.388 .585 .446 .888
Intellectual Stimulation
Intellectual Stimulation
Intellectual Stimulation
Intellectual Stimulation
Intellectual Stimulation
Intellectual Stimulation
Intellectual Stimulation
Intellectual Stimulation
Intellectual Stimulation
Scale Mean ifItem Deleted
ScaleVariance if
Item Deleted
CorrectedItem-TotalCorrelation
SquaredMultiple
Correlation
Cronbach'sAlpha if Item
Deleted
Scale Statistics
29.17 58.788 7.667 9Mean Variance Std. Deviation N of Items
Individualized consideration
153
Reliability Statistics
.863 .867 9
Cronbach'sAlpha
Cronbach'sAlpha Based
onStandardized
Items N of Items
Item Statistics
3.14 1.272 388
3.77 1.253 388
3.32 1.248 388
3.16 1.018 388
3.18 1.202 388
3.21 1.080 388
3.10 1.053 388
3.30 1.162 388
3.54 1.256 388
IndividualizedConsideration
IndividualizedConsideration
IndividualizedConsideration
IndividualizedConsideration
IndividualizedConsideration
IndividualizedConsideration
IndividualizedConsideration
IndividualizedConsideration
IndividualizedConsideration
Mean Std. Deviation N
Item-Total Statistics
26.59 48.207 .201 .204 .887
25.96 40.450 .712 .650 .836
26.40 40.571 .707 .665 .837
26.56 44.046 .613 .484 .847
26.54 41.918 .644 .612 .843
26.51 43.021 .649 .465 .844
26.62 42.794 .688 .615 .841
26.42 43.670 .544 .369 .853
26.19 41.371 .645 .607 .843
IndividualizedConsideration
IndividualizedConsideration
IndividualizedConsideration
IndividualizedConsideration
IndividualizedConsideration
IndividualizedConsideration
IndividualizedConsideration
IndividualizedConsideration
IndividualizedConsideration
Scale Mean ifItem Deleted
ScaleVariance if
Item Deleted
CorrectedItem-TotalCorrelation
SquaredMultiple
Correlation
Cronbach'sAlpha if Item
Deleted
Supervision
154
Reliability Statistics
.912 .913 5
Cronbach'sAlpha
Cronbach'sAlpha Based
onStandardized
Items N of Items
Item Statistics
3.96 1.237 388
3.65 1.069 388
3.86 1.187 388
3.68 1.151 388
3.35 1.241 388
Supervision
Supervision
Supervision
Supervision
Supervision
Mean Std. Deviation N
Item-Total Statistics
14.53 15.831 .849 .744 .877
14.85 17.907 .737 .593 .901
14.64 16.444 .817 .700 .884
14.81 16.684 .820 .701 .884
15.15 17.237 .674 .499 .915
Supervision
Supervision
Supervision
Supervision
Supervision
Scale Mean ifItem Deleted
ScaleVariance if
Item Deleted
CorrectedItem-TotalCorrelation
SquaredMultiple
Correlation
Cronbach'sAlpha if Item
Deleted
Scale Statistics
18.49 25.718 5.071 5Mean Variance Std. Deviation N of Items
Salary and Pay
155
Reliability Statistics
.725 .728 3
Cronbach'sAlpha
Cronbach'sAlpha Based
onStandardized
Items N of Items
Item Statistics
2.71 1.090 388
2.68 1.132 388
2.86 1.205 388
Salary
Salary
Salary
Mean Std. Deviation N
Inter-Item Correlation Matrix
1.000 .545 .495
.545 1.000 .376
.495 .376 1.000
Salary
Salary
Salary
Salary Salary Salary
The covariance matrix is calculated and used in the analysis.
Item-Total Statistics
5.54 3.758 .626 .395 .545
5.56 3.942 .527 .311 .660
5.39 3.815 .494 .261 .705
Salary
Salary
Salary
Scale Mean ifItem Deleted
ScaleVariance if
Item Deleted
CorrectedItem-TotalCorrelation
SquaredMultiple
Correlation
Cronbach'sAlpha if Item
Deleted
156
Working conditions
Reliability Statistics
.943 .944 6
Cronbach'sAlpha
Cronbach'sAlpha Based
onStandardized
Items N of Items
Item Statistics
3.08 1.169 388
3.07 1.130 388
3.43 1.145 388
2.99 1.177 388
3.31 1.332 388
3.09 1.225 388
Working Conditionand Work itself
Working Conditionand Work itself
Working Conditionand Work itself
Working Conditionand Work itself
Working Conditionand Work itself
Working Conditionand Work itself
Mean Std. Deviation N
Item-Total Statistics
15.89 28.623 .819 .714 .933
15.90 28.990 .819 .754 .934
15.54 28.234 .878 .833 .927
15.97 28.581 .816 .699 .934
15.66 26.991 .828 .743 .933
15.88 28.112 .817 .685 .934
Working Conditionand Work itself
Working Conditionand Work itself
Working Conditionand Work itself
Working Conditionand Work itself
Working Conditionand Work itself
Working Conditionand Work itself
Scale Mean ifItem Deleted
ScaleVariance if
Item Deleted
CorrectedItem-TotalCorrelation
SquaredMultiple
Correlation
Cronbach'sAlpha if Item
Deleted
Scale Statistics
18.97 40.229 6.343 6Mean Variance Std. Deviation N of Items
Career Development
157
Reliability Statistics
.936 .937 9
Cronbach'sAlpha
Cronbach'sAlpha Based
onStandardized
Items N of Items
Item Statistics
3.46 1.268 388
3.01 1.090 388
3.00 1.082 388
3.38 1.255 388
3.08 1.392 388
3.14 1.316 388
3.33 1.132 388
3.44 1.277 388
3.02 1.332 388
Achievement andCareer Development
Achievement andCareer Development
Achievement andCareer Development
Achievement andCareer Development
Achievement andCareer Development
Achievement andCareer Development
Achievement andCareer Development
Achievement andCareer Development
Achievement andCareer Development
Mean Std. Deviation N
Item-Total Statistics
25.40 67.187 .665 .751 .934
25.86 68.551 .714 .758 .931
25.87 68.003 .754 .733 .929
25.48 64.648 .813 .798 .925
25.78 63.427 .779 .727 .927
25.72 65.293 .734 .765 .930
25.53 66.224 .821 .825 .925
25.43 63.553 .857 .796 .922
25.84 65.421 .716 .761 .931
Achievement andCareer Development
Achievement andCareer Development
Achievement andCareer Development
Achievement andCareer Development
Achievement andCareer Development
Achievement andCareer Development
Achievement andCareer Development
Achievement andCareer Development
Achievement andCareer Development
Scale Mean ifItem Deleted
ScaleVariance if
Item Deleted
CorrectedItem-TotalCorrelation
SquaredMultiple
Correlation
Cronbach'sAlpha if Item
Deleted
Scale Statistics
28.86 82.630 9.090 9Mean Variance Std. Deviation N of Items
158
Regression Analysis
Table 37: Hypothesis 1
Table 48:Hypothesis 2
159
Table 59:Hypothesis 3
Table 60: Hypothesis 4
160
Table 60: Hypothesis 5
Table 61:Hypothesis 6
161
Table 62: Hypothesis 7
Table 63: Hypothesis 8
162
Table 64: Hypothesis 9
Table 65: Hypothesis 10
163
Table 66: Hypothesis 11
164
Table 67: Hypothesis 12
Table 68: Hypothesis 13
165
Table 69: Hypothesis 14
Table 70: Hypothesis 15
166
Table 71: Hypothesis 13
Table 72: Hypothesis 17
167
Table 73: Hypothesis 14
Table 74: Hypothesis 19
168
Table 75: Hypothesis 20
ANOVA
overall Jobsatisfaction
.224 2 .112 .143 .867
302.549 385 .786
302.773 387
Between Groups
Within Groups
Total
Sum ofSquares df Mean Square F Sig.
Table 76: Hypothesis 21
ANOVA
overall Jobsatisfaction
1.048 4 .262 .333 .856
301.725 383 .788
302.773 387
Between Groups
Within Groups
Total
Sum ofSquares df Mean Square F Sig.
Table 77: Hypothesis 22
ANOVA
overall Jobsatisfaction
.056 2 .028 .036 .965
302.717 385 .786
302.773 387
Between Groups
Within Groups
Total
Sum ofSquares df Mean Square F Sig.
Table 78: Hypothesis 23
ANOVA
overall Jobsatisfaction
4.751 5 .950 1.218 .300
298.022 382 .780
302.773 387
Between Groups
Within Groups
Total
Sum ofSquares df Mean Square F Sig.
169
Table 79: Hypothesis 24
ANOVA
overall Jobsatisfaction
3.683 4 .921 1.179 .320
299.090 383 .781
302.773 387
Between Groups
Within Groups
Total
Sum ofSquares df Mean Square F Sig.
Table 80: Hypothesis 25
170
Multiple Linear Regression analysis
Table 81: Multiple Regression 1
Table 82: Multiple Regressions 2
171
Table 83: Multiple Regression 3
172