Impact of Transformational Leadership on Psychological Empowerment and Job Satisfaction Relationship: A Case of Yemeni Banking
DOI:
https://doi.org/10.21512/bbr.v7i2.1584Keywords:
transformational leadership, psychological empowerment, job satisfaction.Abstract
The banking sector of Yemen is under threat due to the lack of confidence and trust of the prospective clients that hindered economic development of the country. The study aimed to measure a moderating effect of transformational leadership on employees’ psychological empowerment and job satisfaction relationship so that attitudes of the Yemeni can be bumped towards banking. In this study, 160 employees were surveyed in different branches of four banks in Yemen. The data were analyzed in four stages namely, reliability and validity analysis, descriptive analysis, multivariate analysis, and hypotheses testing analysis. The study revealed a significant positive relationship between employees’ psychological empowerment and transformational leadership towards their job satisfaction level. If the policy makers consider the findings and undertake necessary measures, the Yemeni banking is expected to be accelerated which will contribute to the economy of the country.
Plum Analytics
References
Afshari, M., Kamariah, A. B., & Wong, S. L. (2012). Factors Affecting the Transformational Leadership Role of Principals in Implementing ICT in Schools. The Turkish Online Journal of Educational Technology, 11(4), 164-176.
Ahmed, S. & Uddin, N. (2012). Job Satisfaction of Bankers and its Impact in Banking. ASA University Review, 6(2), 95-102.
Ahmed, S., Raihan, M. Z., & Islam, N. (2013). Labor Unrest in the Ready-Made Garment Industry of Bangladesh.
Impact of Transformational Leadership......(Shaheen Ahmed; et. al)
International Journal of Business and Management, 8(15), 68-80
Al-Hussami, M. (2008). A Study of Nurses’ Job satisfaction: The Relationship to Organizational commitment, Perceived organizational Support, Transactional Leadership, Transformational Leadership and the Level of Education. European Journal of Scientific Research, 22(2), 286-295.
Al-Swidi, A. K. & Mohammad, R. (2011). Yemeni Banking System: Critical Issues and Future Recommended Strategies. European Journal of Social Sciences, 20(4), 637-655.
Al-Zahrani, A. A., Ahmad, M. Z., Ahmad, Y. M. Z., Ahmad, Y. M.
O., & Nidal, A. (2012). The Impact of Antecedents Supporting Organizational Innovation on employees’ Psychological Empowerment: An Empirical Study of Saudi and Jordanian Industrial Corporations. African Journal of Business Management, 6(24), 7329-7343.
Aryee, S., and Chen, Z. X. (2006). Leader-Member Exchange in a Chinese Context: Anteceedent, the Mediating Role of Psychological Empowerment and Outcomes. Journal of Business Research, 59(7), 793-801.
Avey, J. B.; Hughes, S. E. F.; Norman, S. M., & Luthans, K. W. (2008). Using Positively Transformational Leadership and Empowerment to Combat Employee Negatively. Leadership and Organizational Development Journal, 29(2), 110-126.
Avolio, B., Zhu, W., & Bhatia, P. (2004). Transformational Leadership and Organizational Commitment: Mediating Role of Psychological Empowerment and Moderating Role of Structural Distance. Journal of Organizational Behavior, 25, 951-1019.
Babbie, E. R. (1990). Survey research methods. Belmont, CA: Wadsworth.
Baron, R. M. & Kenny, D. A. (1986). The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173-82.
Bartram, T. & Casimir, G. (2007). The relationship between leadership and follower in-role performance and satisfaction with the leaders: The mediating effects of empowerment and trust in the leader. Leadership & Organization Development Journal, 28(1), 4-19.
Bass, B. M. (1985). Leadership and performance beyond expectation. New York, NY: Free Press.
Bass, B. M., & Riggio, R. E. (2010). The transformational model of leadership. In G. R. Hickman (Ed.), Leading organizations: Perspectives for a new era (2nd ed.). Thousand Oaks, CA: Sage.
Berson, Y. & Linton, J. D. (2005). An Examination of the Relationship between Leadership Style, Quality and Employee satisfaction in R & D versus Administrative Environment. R & D Management, 35(1), 51-60.
Bloom, N., & Van Reenen, J. (2007). Measuring and explaining management practices across firms and countries. Quarterly Journal of Economics, 122(4), 1351–1408.
Caudron, S. (1995). Create an empowering environment. Personnel Journal, 74(9), 28-36.
Chebat, J. C. & Kollias, P. (2000). The impact of empowerment on customer-contact employees’ role in service organizations. Journal of Science Research, 3(1), 66-82.
Chen, J. C. & Silverthorne, C. (2008). The impact of locus of control on job stress, job performance and job satisfaction in Taiwan. Leadership and Organization Development Journal, 29(7), 572-654.
Choong, O. Y., Kee, L. W., & Teck, C. L. (2011).Psychological Empowerment and Organizational Commitment in the Malaysian Private Higher Education Institutions. Academic Research International, 1(3), 236-245.
Emami, F., Omidian, N. B., Fazel Hashemi S. M. & Mitra Pajoumnia (2013). Teacher’s Job Attitudes: Comparison and Relationship between Organizational Commitment and Job Involvement among Physical Education Teachers of Iran. Australian Journal of Basic and Applied Sciences, 7(1), 7-11.
Finkelstein, S., Hambrick, D. C., & Cannella, A. A., Jr. (2010). Strategic leadership. In R. Hick- man (Ed.), Hickman, Gill Robinson (2nd ed., pp. 122–161). Thousand Oaks, CA: Sage.
Ghani, A. A. N.; Tengku, A. B. S.; & Kamaruzaman, J. (2009). Antecedents of Psychological Empowerment in the Malaysian Private Higher Education Institutions. International Educational Studies, 2(3).
Gill, A., Fitzgerald, S., Bhutani, S., & Mand, H. (2010). The relationship between transformational leadership and employee desire for empowerment. International Journal of Contemporary Hospitality Management, 22(2), 263-335.
Guest, D. (2007). HRM and the Worker: Towards a New Psychological Contract. International Journal of Human Resource Management, 12(7), 1092-1106.
Guest, D. E. (2004). Flexible employment contract, the psychological contract and employee outcomes: An analysis and review of the evidence. International Journal of Management Review, 5/6(1), 1-19.
Hair, Jr., J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate Data Analysis: A global perspective (7th ed.) Upper Saddle River, NJ: Pearson Prentice Hall.
Han, S. S., Moon, S. J. & Yun, E. K. (2009). Empowerment, Job satisfaction, and organizational commitment: Comparison of permanent and temporary nurses in Korea. Applied Nursing Research, 22(4), 15-34.
Hechanova, M., Alampay, R. & Franco, E. (2006). Psychological empowerment, job satisfaction and performance among Filipino service workers. Asian Journal of Social Psychology, 9(1), 72-79.
Jha, S. S. & Nair, S. (2008). Influence of locus of control, job characteristics and superior-subordinate relationship on psychological empowerment: A study on five-star hotels. Journal of management Research, 8(3), 147-16.
Judge, T. A., & Piccolo, R. F. (2004). Transformational and Transactional leadership: A meta analytic test of their relative validity. Journal of applied psychology,89(5), 755–768.
Kirkbride, P. (2006). Developing Transformational Leaders: The Full Range Leadership Model in Action. Industrial and Commercial Training, 38(1), 23-32.
Kuo, H. T., Yin, T. J., & Li, I. C. (2007). Relationship between Organizational Empowerment and Job Satisfaction Perceived by Nursing Assistant at Longterm Care Facilities. Journal of Clinical Nursing, 10, 1-9.
Lankau, M. J. & Scandura, T. A. (2002). An Investigation of Personal Learning in Mentoring Relationships: Contents, Antecedents and Consequences. Academy Of Management Journal, 45(4), 779-791.
Laschinger, H. K. S., Finegan, J. E., Shamian, J., & Wilk, P. (2004). A Longitudinal Analysis of the Impact of Workplace Empowerment on Work Satisfaction. Journal of Organizational Behavior, 25(4), 527-571.
Liang, J. W. & Zhen, H. W (2012). The influence of Psychological empowerment on work attitude and behaviour in Chinese Organizations. Journal of Business Management, 6(30), 8938-8947.
Locke, E. A. (1976). The nature and Causes of Job Satisfaction. Handbook of Industrial and Organizational Psychology. Chicago, IL: Rand McNally.
Lowe, K. B., & Gardner, W. L. (2001). Ten years of the Leadership Quarterly: Contributions and challenges for the future. Leadership Quarterly, 11(4), 459–514.
Luthans, F. (2005). Organizational Behavior (10th ed.). New York: The McGraw Hill Companies.
Maister, D. H. (2001). Practice what you Preach. New York: The Free Press.
Maslow, A. (1971). The farther reaches of human nature. New York: The Viking Press.
Naidoo, R., Balmford, R. A., Costanza, B., Fisher, R. E. Green, B., Lehner, T. R., & Malcolm, T. H. (2008). Global mapping of ecosystem services and conservation priorities. Proceedings of the National Academy of Science, USA 105(28), 9495-9500.
Northhouse, P. G. (2010). Leadership: Theory and practice (5th ed.). Thousand Oaks, CA: Sage.
Nunnally, J. C. (1978). Psychometric Theory (1st ed.). New York: McGraw Hill.
Omar, W. A. A. & Hussin, F. (2013). Transformational Leadership Style and Job Satisfaction Relationship: A Study of Structural Equation Modeling. International Journal of Academic Research in Business and Social Sciences, 3(2), 346-365.
Pelit, E., Yuksel Ozturk, Y. & Arslanturk, Y, (2011). The Effects of Employee Empowerment on Employee Job satisfaction: A Study on Hotels in Turkey. International Journal of Contemporary Hospitality Management, 23(6), 784-802.
Podsakoff, P. M., MacKenzie, S. B., Moorman, R. H., & Fetter, R. (1990). Transformational leader behaviors and their effects on followers’ trust in leaders, satisfaction, and organizational citizenship behaviors. Leadership Quarterly, 1(2), 107–142.
Ramlall, S. (2004). A Review of Employee Motivation Theories and their Implications for Employee Retention within Organizations. Journal of American Academy of Business, 5(1/2), 52.
Saeed, A. (2011). Only four percent of Yemenis have bank account. Yemen Times, 14010. Retrieved January 15, 2011, from http://Yementimes.com
Schein, E. H. (2010). The learning culture and the learning leader. In G. R. Hickman (Ed.), Leading organizations: perspectives for a new era (2nd ed.). Thousand Oaks, CA: Sage.
Sekaran, U. (2003). Research methods for business (4th ed.). Hoboken, NJ: John Wiley & Sons.
Seo, Y., Ko, J., & Price, J. L. (2004). The determinants of job satisfaction among hospital nurses: model estimation in Korea. International Journal of Nursing Studies, 41(4), 437-483.
Sigler, T. H. & Pearson, C. M. (2000). Creating an empowering culture: examining the relationship between organizational culture and perception of empowerment. Journal of quality management, 5(2000), 27-52.
Silla, I., Gracis, F., & Peiro, J. M. (2005). Job insecurity and health related outcomes among different types of temporary workers. Economic Independent Democracy, 26(1), 89-117.
Standards and Industrial Research Institute of Malaysia. (2010). SIRIM Berhad Corporate Website - Home. Retrieved from http://www.sirim.my/
Spreitzer, G.,& Mishra. A. (2002).Toslayortogo:Voluntary survivor turnover following an organizational downsizing. Journal of Organizational Behavior, 23(6), 707-729.
Stordeur, S., Vandenbarghe, C., & D’hoore, W. (2000). Leadership Style across Hierarchical Levels in Nursing Departments. Nursing Research, 49(1), 37-43.
Swidi, K. A.; Mohd, K. M. N. & Asma, A, H. (2012). Is the Relationship between Employees’ Psychological Empowerment and Employees’ Job Satisfaction Contingent on the Transformational Leadership? A Study on the Yemeni Islamic Banks, Asian Social Science, 8(10), 130-150.
Varekamp, I., Verbeek, J. H., & Dijk, F. J. (2006). How can we help employees with chronic diseases to stay at work? A review of interventions aimed at job retention and based on an empowerment perspective. International Achieve of Occupational Environment Health, 80(2), 87-97.
Welch, J., & Welch, S. (2005). Winning. New York: Harper Collins
Yemen Country Profile (2011). Retrieved September 18, 2011, from http://www.fco.gov.uk/en/about-the-fco/country-profiles/middle-east-north-africa/yemen?profile=geography&pg=5
Yukl, G. (1989). Managerial leadership: A review of theory and research. Journal of Management, 15(2), 251–289.
Downloads
Published
Issue
Section
License
Authors who publish with this journal agree to the following terms:
a. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License - Share Alike that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
b. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
c. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
USER RIGHTS
All articles published Open Access will be immediately and permanently free for everyone to read and download. We are continuously working with our author communities to select the best choice of license options, currently being defined for this journal as follows: Creative Commons Attribution-Share Alike (CC BY-SA)