Impacts of Leadership Styles on Employee Job Satisfaction and Turnover Intentions

Impacts of Leadership Styles on Employee Job Satisfaction and Turnover Intentions
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Abstract
Leadership styles, job satisfaction, and turnover intentions were evaluated in a sample of employees from various firms. Transformational leadership increases job satisfaction and decreases turnover intentions. Transactional and laissez-faire leadership styles did not affect work satisfaction but did affect turnover intentions. These findings show that firms should conduct training and development programs to help executives acquire transformational leadership skills to increase job satisfaction and decrease turnover intentions. However, self-reported metrics and the inability to show causality limited the study. This study adds to the literature on leadership styles and employee outcomes, providing insights for firms wanting to enhance leadership.
Table of Contents Abstract. 2 Impacts of Leadership Styles on Employee Job Satisfaction and Turnover Intentions. 4 Research Questions. 4 Hypothesis. 4 Dependent and Independent Variables. 5 Proposed New Research Model 5 Literature Review.. 6 Transformational Leadership. 6 Employee Relations Climate. 7 Employee Empowerment. 8 Theoretical Review.. 9 Transformational Leadership Theory. 9 Social Exchange Theory. 10 Psychological Empowerment Theory. 11 Empirical Review.. 11 Methodology and Research Design. 12 Results. 13 Hypotheses test 13 Discussion. 14 Limitations. 15 Conclusion. 16 Recommendations. 17 References. 18
Impacts of Leadership Styles on Employee Job Satisfaction and Turnover Intentions
Thinking about how leadership contributes to accomplishing corporate goals and objectives is essential. Effective leadership has enhanced overall employee well-being, lowered inclinations to leave the company, and greater work satisfaction (Gom et al., 2021). Conversely, poor leadership can result in low morale, a high turnover rate, and a detrimental effect on organizational performance. Transformational leadership is one particular approach that has drawn more and more attention in recent years. Instead of depending on incentives and penalties, this leadership approach inspires and encourages team members to work toward a common goal (Asgari et al., 2020). Although transformational leadership is gaining popularity, more study is still required to fully understand its impact on employee outcomes. Contrasting transformational leadership with other leadership philosophies is necessary to ascertain which encourages productive employee results. Based on these needs, the study examined the connections between transformational, transactional, and laissez-faire leadership styles and employee job satisfaction and desire to leave the company.
Research Questions
1. How do leadership philosophies (transformational, transactional, and laissez-faire) affect employees' work satisfaction levels?
2. How do employees' intentions to leave the company affect the transformational, transactional, and laissez-faire leadership styles?
Hypothesis
1. H1: Transformational leadership will significantly improve employee work satisfaction.
2. H2: There will be no discernible connection between transactional leadership and employee job satisfaction.
Dependent and Independent Variables
Dependent variables: employee job satisfaction and turnover intentions.
Independent variable: transformational leadership style.
Proposed New Research Model
The proposed new research model builds on the findings of the journal article by Chen et al. (2021) and adds the variable of employee empowerment as a moderator in the relationship between transformational leadership and employee job satisfaction. The proposed new research model is as follows.
According to the model, transformational leadership, defined by a leader's capacity to encourage and motivate workers to attain higher performance levels, positively impacts worker happiness. The employee relations climate mediates this relationship, including the environment and culture of the business and the standard of interactions and communication between employees and their leaders (Chen et al., 2021). According to the postulated mediation effect, the leader's ability to foster a healthy atmosphere for employee interactions may help explain some of the transformational leadership's positive effects on employee job satisfaction. Notably, employees are likelier to experience a favourable work environment and report better job satisfaction when leaders exhibit transformational leadership qualities, including customized concern, intellectual stimulation, and inspiring motivation.
The model also suggests that employee empowerment moderates the association between transformative leadership and employee job satisfaction. Employee empowerment describes how much control people feel over their job, decisions, and consequences. According to the postulated moderating effect, empowered individuals are more important to the excellent association between transformational leadership and employee job satisfaction (Chen et al., 2021). This moderating effect is explained by the fact that empowered workers have more influence over their job and are more likely to be inspired by transformational leadership behaviours like thoughtful consideration of each and intellectual stimulation (Asgari et al., 2020). Additionally, authorized workers are more likely to perceive a favourable work environment, strengthening transformational leadership's beneficial impacts on job satisfaction.
Literature Review
Transformational Leadership
Transformational leaders inspire and motivate people to do better. Transformational leadership improves work satisfaction. Transformational leadership was substantially associated with job satisfaction in a Chinese sample (Nidadhavolu, 2018). In a Malaysian hospital sample, transformational leadership increased work satisfaction. Organizational behaviour research shows that transformative leadership boosts work satisfaction. Transformational leaders inspire and drive their followers to perform better, which increases work satisfaction. According to Nidadhavolu (2018), transformational leadership and work satisfaction were evaluated in U.S. Air Force employees. Job satisfaction was positively correlated with transformative leadership (Nidadhavolu, 2018). This association was more robust than transactional leadership (task-oriented) and work happiness. Another research by Naseem et al. (2018) evaluated transformative leadership and work satisfaction in Malaysian hospitals; according to the study, transformational leadership increases work satisfaction through employee empowerment (Naseem et al., 2018). The research concluded that workers benefit from transformational leadership because it encourages individual accountability and a sense of personal success at work. Another recent study looked at the link between transformative leadership and employee satisfaction in China, and how that link is mediated by the employee relations climate (Lan et al., 2019). Transformational leadership increases employee work satisfaction, primarily mediated by the employee relations atmosphere (Lan et al., 2019). The study concluded that transformative leadership improves employee relations and work satisfaction.
Figure SEQ Figure \* ARABIC 1: Transformational leadership: How to inspire and motivate employees (Belayhun, 2021)
Employee Relations Climate
Employee relationships are crucial to both transformational leadership and workplace satisfaction. The interactions between management and staff, as well as the culture of the business, are all components of the employee relations environment. Workplaces characterized by trust, respect, open communication, and teamwork tend to be more productive and healthier for employees. According to studies conducted by Ali et al. (2018), transformative leadership positively impacts workplace relationships and morale. Transformative leadership enhanced confidence and job satisfaction among Chinese healthcare workers. Ali et al. (2018) found that the employee relations climate in China moderated the transformative leadership-job satisfaction association. The research found that transformational leadership in the workplace increased employee happiness by encouraging open lines of communication and teamwork.
A key mediator is the employee relations environment, which encompasses the ties between management and staff and the company's culture. Employees' positive interactions with their leaders moderate the link between transformational leadership and work satisfaction (Eliyana et al., 2019). A Chinese study found that the quality of ties between management and staff tempered the relationship between transformational leadership and workers' happiness.
Figure SEQ Figure \* ARABIC 2: Leadership characteristics, employee happiness, and the likelihood of employee turnover (Ali et al., 2018).
Employee Empowerment
Transformational leadership and work satisfaction need employee empowerment. In their research, Jena et al. (2018) found that employee empowerment is how much employees believe they can manage their job, make decisions, and affect outcomes. Empowered workers are more satisfied, engaged, and motivated (Jena et al., 2018). Empowering employees strengthens the beneficial association between transformational leadership and work happiness. Employee empowerment attenuated the connection between transformative leadership and work satisfaction in salespeople. When empowered, transformative leadership improves work satisfaction (Jena et al., 2018). The study indicated that transformational leadership and work satisfaction were more vital for empowered nurses. According to the research, transformational leadership increased employee empowerment and nurse job satisfaction. The moderating processes between transformative leadership and employee job satisfaction have also been studied (Jena et al., 2018). Empowerment- the degree to which workers believe they can manage their job, make decisions, and impact outcomes, is a moderator. Empowerment moderates the transformational leadership-job satisfaction connection.
Figure SEQ Figure \* ARABIC 3: A mediating model of the effect of transformative leadership on productivity, burnout, and laziness in the workplace (Yucel, 2021).
Theoretical Review
Transformational Leadership Theory
Transformational leadership theory states that leaders and followers collaborate to achieve goals. According to this view, transformational leaders may inspire and encourage people to surpass their self-interests and perform well (Inegbedion et al., 2020). Four leadership behaviours-idealized influence, inspiring drive, intellectual stimulation, and individualized consideration, achieve this. The leader's capacity to inspire people by modelling their ideals and beliefs is called idealized influence (Inegbedion et al., 2020). Leaders must present a compelling vision to encourage people to strive for it. Leaders must inspire people to think critically and creatively and develop fresh ideas. Leaders who identify and address followers' needs build trust and loyalty.
Transformational leadership theory improves work satisfaction, organizational commitment, and performance. The theory has also been challenged for its lack of clarity and the empirical validity of its constructs (Brown et al., 2019). Despite these concerns, transformational leadership theory is a popular organizational behaviour research paradigm. Transformational leadership theory holds that influential leaders inspire and drive their people to succeed (Brown et al., 2019). Transformational leaders inspire followers, challenge them to reach their potential and create a pleasant work atmosphere that promotes growth.
Social Exchange Theory
Social exchange theory proposes that people interact with the expectation of gaining advantages or rewards for their efforts while paying or sacrificing. Benefits and expenses may include emotional support, acknowledgment, personal growth, and development possibilities (Chernyak-Hai & Rabenu, 2018). Employees exchange their time, effort, and abilities for income, perks, promotions, and training and development. According to social exchange theory, employees are more dedicated and engaged when they feel appreciated and rewarded and part of a healthy social environment that fosters trust, respect, and collaboration. According to social exchange theory, people trade incentives and expenses to optimize results (Chernyak-Hai & Rabenu, 2018). Social exchange theory implies that equitable treatment and benefits for labour will make workers more loyal.
Psychological Empowerment Theory
Psychological empowerment theory claims that empowered workers are more satisfied and motivated, which improves work performance and well-being. Empowered workers are more inclined to take charge, solve problems, and support the company's aims (Monje Amor et al., 2021). They also pursue development possibilities more actively. Research has shown other antecedents to employee psychological empowerment besides the four categories. Transformational leadership, democratic decision-making, and supportive organizational culture are examples (Monje Amor et al., 2021). Lack of resources, perceived injustice, and h...