The role of tranformational leadership as cause of positive outcomes in organizations

Oliver Egbuna, Ngodo Ngodo. (2011) The role of tranformational leadership as cause of positive outcomes in organizations. PhD thesis, Universiti Malaysia Sarawak.

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Abstract

The main purpose of this study has two parts. One is to examine whether a new paradigm of organisational leadership known as Transfonnational Leadership wiB cause positive outcomes in organisations, particularly in Malaysia. The other part is to identify the influence processes involved in the way Transfonnational Leadership works to cause positive outcomes in organisations After thorough examination of both theoretical and empirical data available in this and related fields, seven hypotheses were fonnulated for testing in the study. These hypotheses were then structured into a hypothesized model to link Transfonnational Leadership through the mediating influences of Procedural Justice and Trust to positive outcomes in organisations, specifically Organisational Citizenship Behaviour, Organisational Commitment and Job Satisfaction. The data used in evaluating the structural model were gathered from 16 companies registered in the category ofBerhad by CCM and based in Kuching District ofSarawak State of Malaysia. On the whole 510 pennanent employees of these companies completed the questionnaire used to gather data for the study. This model was then evaluated by application of structural equation modeling (SEM) analysis with AMOS 16.0 software. VI I .. The result indicated that the model was well fitting. This means that now there is empirical support for the hypothesized structural model linking Transformational Leadership through the mediating influences of Procedural Justice and Trust to positive outcomes. Therefore the study found positive relationship between Transformational Leadership and both Procedural Justice and Trust as well as between Procedural Justice and Trust. Furthermore it found positive relationship between Trust and each of Organisational Citizenship Behaviour, Organisational Commitment and Job Satisfaction. The study therefore concludes that Transformational Leadership caused positive outcomes in organisations studied. The study also now offers explanations for how this leadership paradigm works to cause positive outcomes, which is that Transformational Leadership works by influencing Procedural Justice and Trust directly. Then Trust subsequently impacts on Organisational Citizenship Behaviour, Organisational Commitment and Job Satisfaction, which are positive outcomes.

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