Leadership styles

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

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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

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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

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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

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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

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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

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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

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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.

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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.

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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.

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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).

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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

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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

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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.

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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.

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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

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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

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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


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


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)


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




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


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.


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.

66

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


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.


Inspirational Motivation

60

50

40

30

20

10

0

Pe

rcen

t


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.



200

150

100

50

0

Fre

qu

en

cy


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

71

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”.


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”.



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.



Working condition mean

150

100

50

0

Fre

qu

ency

Working condition mean

Figure 14: Work condition

75

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.



Achievement and Career development

150

100

50

0

Fre

qu

en

cy

Achievement and Career development

Figure 15: Career opportunities

76

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.


overall leadership style

200

150

100

50

0

Fre

qu

en

cy

overall leadership style

Figure 16: Overall Leadership style

77

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.



overall Jobsatisfaction

200

150

100

50

0

Fre

qu

en

cy


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


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


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


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

81

Managers experience level

10%

31%

21%

22%

16%

betw een 2-5 years

betw een 5-10 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


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.


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.





5.4.3 H3

There is a positive relationship between Idealized influence and work condition.


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.





85

5.4.4 H4

There is a positive relationship between Idealized influence and career Achievements


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.





5.4.5 H5

Idealized influence correlates positively with Job Satisfaction


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)





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


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.


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.





87

5.4.8 H8

There is a positive relationship between Inspirational motivation and work condition


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






5.4.9 H9

There is a positive relationship between Inspirational motivation and career Achievements


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.





88

5.4.10 H10

There is a positive relationship between Inspirational motivation and over all job-satisfaction of subordinates


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)





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).


Model Beta R Square change Sig. F change Intellectual stimulation 0.712 0.506 0.000



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.





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






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.





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).





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.


Model BetaR Square change Sig. F change

Individualized consideration 0.746 0.557 0.000



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.


Model Beta R Square change Sig. F change Individualized consideration 0.543 0.295 0.000



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).






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).






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).






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).


Thus as the relationship between the two variables were significant hence the alternative

hypothesis H1 was rejected and the null hypothesis H01 was accepted

94

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).




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).




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).




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).




96

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.






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


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

97

Therefore µ1 = µ25. H5

Idealized influence correlates positively with over all job-satisfaction of subordinates


Accept H5Idealized influence correlates positively with over all job-satisfaction of subordinates

6. H6

There is a positive relationship between Inspirational motivation and supervision.


Accept H6There is a positive relationship between Inspirational motivation and supervision.

7. H7

There is a positive relationship between Inspirational motivation and salary


Accept H7There is a positive relationship between Inspirational motivation and salary

8. H8 There is a positive relationship between Inspirational motivation and work condition


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


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


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


Accept H11There is a positive relationship between Intellectual stimulation and supervision

12. H12

There is a positive relationship between Intellectual stimulation and salary


Accept H12There is a positive relationship between Intellectual stimulation and salary

13. H13

There is a positive relationship between Intellectual stimulation and work condition


Accept H13There is a positive relationship between Intellectual stimulation and work condition

98

14. H14

There is a positive relationship between Intellectual stimulation and career Achievements.


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.


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. .


Accept H16There is a positive relationship between Individualized consideration and supervision.

17. H17

There is a positive relationship between Individualized consideration and salary


Accept H17There is a positive relationship between Individualized consideration and salary

18. H18

There is a positive relationship between Individualized consideration and work condition


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.


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.


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.

99

Therefore µ1 = µ223. H23

There is a significant relationship between manager’s educational level and Job-satisfaction.


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.


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.


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.


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)

100

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)

101

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


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


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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


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.


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


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




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


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.


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


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




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


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


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.


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

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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.

115

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.

116

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


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


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


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


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.


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

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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.


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

CHAPTER 9

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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


151


.920 .922 10

Cronbach'sAlpha


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













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












ScaleVariance if

Item Deleted


SquaredMultiple

Correlation


Deleted

Scale Statistics



152


.894 .894 9

Cronbach'sAlpha


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












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











ScaleVariance if

Item Deleted


SquaredMultiple

Correlation


Deleted

Scale Statistics


Individualized consideration

153


.863 .867 9

Cronbach'sAlpha


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












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











ScaleVariance if

Item Deleted


SquaredMultiple

Correlation


Deleted

Supervision

154


.912 .913 5

Cronbach'sAlpha


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



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


ScaleVariance if

Item Deleted


SquaredMultiple

Correlation


Deleted

Scale Statistics


Salary and Pay

155


.725 .728 3

Cronbach'sAlpha


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


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.


5.54 3.758 .626 .395 .545

5.56 3.942 .527 .311 .660

5.39 3.815 .494 .261 .705

Salary

Salary

Salary


ScaleVariance if

Item Deleted


SquaredMultiple

Correlation


Deleted

156

Working conditions


.943 .944 6

Cronbach'sAlpha


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








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








ScaleVariance if

Item Deleted


SquaredMultiple

Correlation


Deleted

Scale Statistics


Career Development

157


.936 .937 9

Cronbach'sAlpha


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











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











ScaleVariance if

Item Deleted


SquaredMultiple

Correlation


Deleted

Scale Statistics


158

Regression Analysis

Table 37: Hypothesis 1

Table 48:Hypothesis 2

159



160



161



162



163


164



165



166



167



168


ANOVA


.224 2 .112 .143 .867

302.549 385 .786

302.773 387

Between Groups

Within Groups

Total

Sum ofSquares df Mean Square F Sig.


ANOVA


1.048 4 .262 .333 .856

301.725 383 .788

302.773 387

Between Groups

Within Groups

Total



ANOVA


.056 2 .028 .036 .965

302.717 385 .786

302.773 387

Between Groups

Within Groups

Total



ANOVA


4.751 5 .950 1.218 .300

298.022 382 .780

302.773 387

Between Groups

Within Groups

Total


169


ANOVA


3.683 4 .921 1.179 .320

299.090 383 .781

302.773 387

Between Groups

Within Groups

Total



170

Multiple Linear Regression analysis

Table 81: Multiple Regression 1

Table 82: Multiple Regressions 2

171

Table 83: Multiple Regression 3

172

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