The factors effect of transformational leadership on organization comment and the employees job satisfaction at puma vietnam

ABSTRACT This research focus on the factors effect of transformation leadership on organizational commitment and the employee’s job satisfaction aperformanc at PUMA Vietnam.. All these f

(OUM OPEN UNIVERSITY MALAYSIA

THE FACTORS EFFECT OF TRANSFORMATIONAL LEADERSHIP ON

ORGANIZATION COMMITMENT AND THE

EMPLOYEE’S JOB SATISFACTION AT PUMA

ABSTRACT This research focus on the factors effect of transformation leadership on

organizational commitment and the employee’s job satisfaction aperformanc at

PUMA Vietnam Data were collected through a questionnaire from 200

employees in PUMA Vietnam The 133 questionnaires were sent back to

researcher In this study, multiple regression was used to analyze data Results

showed that transformational and had direct relationship with the employee’s

satisfaction and and the organizational commitment The main implication of

this study, the leader should use appropriate polices and innovative managing

methods to increase employee’s job satisfaction and job performance by uses of

limited resources

IV

ACKNOWLEDEMENTS Iwould like to thank a lot of people for their continued guidance and

support with whom in this study was made possible

I would like to express my sincere gratitude and appreciation to Dr Bui

Phi Hung, my thesis advisor who has given permission and approval for me to

proceed with this research His wide knowledge and thinking have been much

great value for me, his understanding, encouraging and personal guidance have

provided a good basis for present thesis, inspiring guidance, patience, wisdom,

cannot complete my thesis successfully and smoothly

TABLE OF CONTENTS

1.1 Imtroducfion . - nh nh nh th h tt 1

1.3 Statement of the problem - - - - - Tu ng xa 5

1.5 Research questions 0 6.6 eee ee ett nh nh nh 6

2.1.3 The relationship between leadership and employee’s job satisfaction

cece eee ne eee eee eee ene eee eee eee eee ene eres 17

Part 1: Demographic . - +e ee reer nh 27

Part 2: Leadership 20-2 2-2 cece eee reer nh nh nh nh 27

Part 3: Organizafional commitment - - - - - - - - - 27

3.3 Samples si . - - {ch nh nh nh nh nh nh nh nh nợ 29

3.4 Variables of the research - - - - Lee eee eee 29

3.5 Data analysis eee eee e rere eens este es 30

CONCLUSIONS, LIMITATION AND FUTURE RESEARCH 37

5.1Conclusons: - - - - - - ¬ e eee ree enters: 37

5.2 Limitation of the Study: . - 2 seer cere terres 37

Part 2: Leadership

Part 3: Organizational commitment

Part 4: Employee’s job satisfaction

ee rere rere eee eH OHH

LIST

Viil

OF TABLE Table-1; Demographic Analysis 6 eee eee creer

Table-2: Descriptive Statistics

Table-3: Regression Analysis

INTRODUCTION

This chapter presented the importance of transformational leadership

on organizational commitment and employee’s satisfication in the organization The following points have been discussed

1.6 Scope of the Research

1.7 Expected Benefit of the Research

1.8 Operation Definition

1.1 Introduction

To run organizations smoothly, effectively and efficiently, the most valuable and indispensable factor organizations need is human resource (Mosadragh, 2003) Well-qualified and capable personnel are important in context of achieving goals and objectives of an organization The success of an organization depends on the hard working, loyal and involved managers and employees In this modern era where world has become a global village, firms are considered to be competitive on the basis of competence of their human resources It is somewhat a difficult task to handle people who are physically, psychologically, culturally and ethnically different from each other Management of employees is largely dependent on the quality of leadership organizations have (Albion & Gagliardi, 2007) Leadership is a bond which makes people to work together Organizations at present are more concerned about understanding, development and improvement of their leadership Transformational leadership is a modern approach towards leadership Hall et al

2 (2008) defined transformational leadership as a system of changing and

transforming people

If leaders want to produce a positive influence on individuals, groups and

organizations, then leadership should be broadened from old rigid autocratic

style to friendly and contemporary style (Dess et al., 1998) Modern leaders

perfectly adopt an attitude that support employees, provide them a vision,

cultivate hope, encourage them to think innovatively, individualized

consideration and broaden the communication All these factors are the main

features of transformational leadership style leading to boost up organizational

strengths and increasing level of job satisfaction and organizational commitment

in workforce Job satisfaction is the degree to which a person is pleased or

satisfied with his/her job or work Success of organizations highly depends on

its workforce More satisfied and happy employees would be more productive

and profitable for the organization (Saari & Judge, 2004) Job satisfaction helps

to create positive attitudes in employees, boosts up their morals, improves their

performance and creates pleasant relationship with their co-workers Employees

who are satisfied with their jobs tend to be more creative and innovative that help

businesses to grow, flourish and bring positive changes according to market

situations and thus making organizations able to compete at international level

For the organizations, they have no longer layoffs in the forms of voluntary

resignation to cut costs to brace for the worst, it’s to find ways to retain

employees to make the organization be efficiency and succeed Foosiri (2002)

explained that the organizational commitment is an important job outcome

because of its demonstrated influence on positive work-related attitudes and

behaviors, for example, employee’s job satisfaction, high performance,

organizational citizenship behavior and low turnover The other aspects of this

study are to research three-component model of organizational commitment by

Allen, Meyer (1990) and Meyer, Allen (1991) To explain with a high level of

commitment, employees may have a strong belief in the organization’s objective

and values, wish to optimistically express the organization, and finally have an

intense desire to continue being members in the organization (Mowday et al.,

1982) In the past studies, the concept of employees’ organizational commitment

was a very complex and diversified subject, but it is now considered as a

al., 2010)

1.2 Background of study

In the early studies of human resource, research began to describe on the

characteristics of leadership behavior between leaders and followers in the

1999) Recently the crises of organizational also have emphasized the need for

leadership from the decision maker and become more and more critical for

getting organizational success (Earle 1996) This means the leader who is an

important person who is able to give a clear view to the employees how to

achieve the organization’s goals and encourages employees to achieve the

organization’s goals and then to make organization succeed Thus, a lot of the

organizations in the world are deeply concerned with understanding, seeking and

developing leadership

On the other hands, if we would like to make the employee loyalty, share

employee’s beliefs and values with the organization become more popular topic

in the organization now The past empirical studies indicated that how to retain

employees and keep them committing to an organization is one of the most

significant issues in management David, Andrews and Bucklew (2010) also said

that the competitive advantage of the company is inevitable to have talented and

loyal individuals willing retain in the organization Therefore, until today there

are a lot of scholars regarding it as the study of organizational commitment

(Allen & Meyer, 1990; Jaussi, 2007)

Nowadays the competition is increasingly stiff, employee is the most

significant resource for every business organization (Chang & Lee, 2007)

Employee’s initiative work behaviors are decided to organizational success in

4 2001; Parker, 2000) As leadership has been seen as a very important for the

improvement of individual and institutional performance, it has attracted the

researchers to pay attention to studies (Northouse, 2010) Although the concept

of leadership has been used since the beginning of the 19th century, but it has

not consistent agreement upon a method to measure the nature and

consequences of successful leadership (Stogdill, 1974) Burns (1978) explain

that leadership is the most observed but the least understood standout in the

world While early theories focused on the exchange relationship between

leaders and employees was existed At that time, the leaders only set the goal,

support and increase the capacity for the employee But, now this business world

is changing constantly, the leaders should go out of and expansion from the old

rigid autocratic style to mix together present leadership style when leaders want

to have a positive impact on personal employee, team and the organization (Dess

et al., 1998)

To cope with increasing competition pressure globalization and demand for

efficiency, many organizations wish to have an excellent employee to stay in the

organization to increase the competitiveness of the organization In the past,

research on organizational commitment examined its specialized aspects with a

variety of definitions for each type of commitment However, further research

was difficult due to the conflicting definitions and inconsistencies in

measurement Meyer & Allen (1991) proposed a model of organizational

commitment that unified several streams of research They suggested that

researchers could better understand an employee’s relationship with an

organization by assessing and analyzing three distinct components of

organization commitment simultaneously Organizational commitment is a

psychological link between the employee and their organization Some studies

have presented strong relation of organizational commitment and job satisfaction

with turnover (Benkhoff, 1997) Particularly, employees have attitudes or

viewpoints about many aspects of employee’s jobs, employee’s careers and

organizations commitment (Lise & Timothy, 2004) Price (1997) also interpreted

that commitment and satisfaction focus on employees’ attitudes toward

organization and employees’ job, turnover referred to actual movement across

the membership boundary of an organization

1.3 Statement of the problem

Leader is one of the most indispensable roles in an organization (WeiChi et

2009) Since the leadership is a bond which to create willingness in the mind of

the led to achieve the goal and to make people to work together in organization

(Bushra et al., 2011) The employee can through the continuous learning to

creating more knowledge, to be excellent talents and products highly values,

which would make more profitable for organization and make the organization

achieve success The person to leaded and administrated the employee to become

more and more important at this time Leaders of the organization hope that they

can know the factors impact of leadership on employee’s job satisfaction and

performance well, so that they able guide the development of the organization

better Therefore now every organization wanted to different types of leadership

skills to be an arm to beat other organizations in the competition (Barlow et al.,

2003)

On the other side, organizational commitment is a very important employee

attitude In the turnover decision-making models linking employees’ affective

responses, employees’ attitudes have played an important role (Cotton & Tuttle,

1986) Organization wanted to retain employee and create greater performance

which will become an important factor in influence development of the

organization If the employees have lower level of commitment in the

organization, it will lead to higher intention to quit or turnover of employees and

all the performance of the organization will decrease (Elangovan 2001; Meyer

& Allen, 1990; Ton & Huckman, 2008) Thus, organizational commitment was

an important job outcome because of the demonstrated influence on positive

work-related attitudes and behaviors, such as high performance and low

turmmover

6 Past research had showed that leadership substantially cause influenced on

output of personnel resource such as performance, job satisfaction, job resigning

and job attitude A good leader can increase employee’s job satisfaction and

expand the organizational commitment On the other side, organizational

commitment can increase job attitude direct leads to job satisfaction and

performance, thereby enhancing the strength of the organization

1 How does transformational leadership affect employee’s job satisfaction?

2 How does transformational leadership affect employee’s job commitment?

1.6 Scope of research

The independent variables were transformational leadership The

dependent variables were employee’s job satisfaction and employee’s job

commitment The respondents of this research focus on the employees who work

in Puma

1.7 Expected benefits of study

1 To understand the effect of leadership on the employee’s job satisfaction and

employee’s job commitment in order to enhance employee’s job satisfaction

This may final contribute to an improvement in the overall performance of the

organization

te To help human resource department to find what factors of leadership which

will influence the employee's job satisfaction and job commitment and help

in making corrective actions in order to increase employee’s job satisfaction

and enhance employee commitment

3 The result of this study will help to raise the employee’s job satisfaction and

commitment from aspect of leader style

1.8 Operation definition

Leadership |

Leadership means the actions of the person who inspired, enabled,

supported and directed authority to employees and helps employee to complete

tasks toward the setting goal

Transformational leadership

Transformational leadership means the way of the leader inspire

actualization and produce excellent results for organization

Idealized influence

Idealized influence referred to the charismatic actions of the leader which

allowed leader to serve as role models for the employees The idealized influence

leaders who is admired, respected, and trusted to attracted employees to emulate

them, whereby the employees feel trust, admiration, loyalty and respect for the

leader

Inspirational motivation

Inspirational motivation which refers the way to inspire their followers by

rising communicated expectations that followers want to meet and also prove

commitment to goals and the shared vision

Intellectual stimulation

Intellectual stimulation referred to the actions of the leader who challenged

their followers’ ideas, to show their followers new ways to solved old problems,

values for solving problems and looking at how to complete assignments for

employees

Individualized consideration

Individualized consideration which referred acting as a mentor or coach

spends time in teaching employees, enable them to develop self-actualize, pay

§ helping employees to develop their strengths

Affective commitment

Affective commitment meant that the employee's emotional attachment,

self-identity and input on the organization Employee would loyalty and hard

work for the organization, mainly due to the employee's deep feelings of the

organization rather than the material interests of the organization

Work experiences

Work experience was the things that had happened to you which influenced

the way you think and behave which was to make person feel comfort and

competence towards working

Continuance commitment

Continuance commitment referred the willingness of employees to remain

in an organization because of the investment that the employee has with

“nontransferable” investments which is the employee pay times, job efforts,

development of work friendships and organization-specific skills in the

organization, thereby change the idea of employee's turnove

Normative commitment

Normative commitment was the personal commits to and remains with an

organization because of feelings of obligation and as an employee’s moral

commitment that the employee stays with the organization because employee

invests a great deal they will receive advanced rewards

Organization investment

Organization investment meant that the organization provided the rewards in

advance and incurs significant costs for the employees

Job satisfaction

Job satisfaction referred to the process of an individual work in the

organization could meet the needs of individual and provides him/her with

pleasure

Intrinsic satisfaction

Intrinsic satisfaction referred to the employees could get job meets the needs

of an employee and provides employee with pleasure comes from inside an

individual, including the feeling of self-esteem, worthwhile accomplishment in

the job and self-judgment at work etc It was level of satisfaction with various

features associated with the job itself

Extrinsic satisfaction

Extrinsic satisfaction referred to the employees could get job meets the

needs of an employee and provides employee with pleasure from outside an

individual, including relationship with supervision, promotion opportunities of

job, salary and Job security etc It was level of satisfaction with various features

associated with the environment in which the work was performed

10 CHAPTER 2 LITERATURE REVIEW

This chapter presented the relevant background literature for this study It

summarized the major streams of research on which this study was based on the

transformational leadership theory and Meyer and Allen (1997) integrated into

their model The first section was the leadership, in this study the

transformational leadership theories were applied The second section described

the organizational commitment, its antecedents and theoretical background,

which included the three-component model of organizational commitment (Allen

& Meyer, 1990; Meyer & Allen, 1991) The third section focused on the

employee’s job satisfaction which it had been separated into intrinsic and

extrinsic two portions by Herzberg (1966)

The objectives of this chapter were to review the effect of transformational

leadership on organizational commitment and the employee’s job satisfaction

2.1 Leadership

Leadership was the way of person who initiatives, enables and supports to

employees and helped employee to complete tasks which employees and

superiors were expected (Spillane et al., 2003) Daft (2005) also made a defined

that leadership as an affect relationship between leaders and followers who

intended real changes and outcomes that reflex their common goal Leadership

meant that the way to produce a clear vision, give the self-confidence to their

subordinates, created the detail through coordination and communication (Bohn

& Grafton, 2002) Lussier & Archua (2007) and McLaurin (2008) also gave an

explained that leadership was the process by which the leader influence their

employee to achieve organizational goals The leader through motivating their

employee to achievement the organization's goals and adapt the environment's

changes (Amis et al., 2004).Leadership had been described in terms of the

position, personality, responsibility, influence process, an instrument to achieve

a goal and behaviors Having various scholars give most definitions is the act of

influencing the activities of an organized group in its efforts toward setting goal

and achievement goal (Stogdill, 1950) Robbins (2003) explained that leaders

who built direction by developing a vision of the future for organization, then

leader communicating vision with employees, at the same time inspired the

employees to overcome hurdles

The book of “The Philosophy of Leadership” by Hodgkinson (1983) said

that classification was the beginning of scientific, from leading scientific research

can be divided from the type of the leader Depends on the characteristics of a

leader can be divided into Habitat for Humanity leadership and capable

leadership; Depending on the work style of the leaders can be divided into

dictatorial leadership, authoritarian leadership, democratic leadership and the

laissez-faire type; Accordant with the mentality of the leader can be divided into

transformational and transactional leadership Since 1980s, a lot of scholars have

begun to researches the distinguishing between the transformational and

transactional leadership (Figure 2.1) Burns (1978) was the first person to

articulate that a leader can be considered either transformational or transactional

The theories of leadership tried to found different leadership style, which was the

general ways to practice the leadership (Barling et al., 1983)

Leadership continued to be one of the most widely discussed topic by the

researchers from all over the world (Kuchler, 2008) Jong and Hartog (2007)

described leadership as a process to influence people in order to get desired

results Lok and Crawford (2004) proclaimed that leadership plays a vital role in

determining the success and failure of a firm Gill (2006) identified that leaders

help to stimulate, motivate, encourage, and recognize their followers in order to

get key performance results There are many different styles of leadership

Mosadeghard (2003) had pointed out following styles of leadership: autocratic,

bureaucratic, laissez-faire, charismatic, democratic, participative, situational,

12 transactional, and transformational leadership In this study, transformational

leadership is will be under discussion |

Each aspect of transformational leadership idealized influence, inspirational

motivation, intellectual stimulation, and individualized consideration all are

positive impact of worker,productivity, job satisf action and job commitment

2.1.1 Transformational leadership

Transformational leadership one of the leadership style that leaders inspired

employees to transcend employees self interests for the good of the organization,

increase the employee's motivation, beliefs, perceptions, level of their morals and

coalition with the objectives of the organization (Burns, 1978) At the same,

Burns (1978) also explained that transformational leader is encourages

employees to put in extra effort and to go beyond what the employees expected

Bass (1985) suggested that transformational leaders raised employees’

understanding of the signification of organizational outputs and helped transform

employees’ personal values to be accordant with the group objective or mission

of the organization The employees of transformational leaders will trust the

leader, adore, loyalty, and respect to the leaders and the employees will energetic

to perform extra-role behaviors (Bass, 1985; Katz & Kahn, 1978) Because of

transformational leaders able to inspire their employees to increase employees’

capabilities for success and develop employees’ innovative to solving issue skills,

therefore, scholars said that the transformational leaders can achieve the greatest

performance from employees (Bass, 1985; Yammarino & Bass, 1990)

Transformational leadership was positively connected with significant work-

related, attitudes and behaviors of employees, such as job satisfaction,

1999)

Bass (1985) explained that transformational leadership had four key

components: idealized influence, inspirational motivation, intellectual

stimulation and individualized consideration

First, idealized influence was referred to the charismatic actions of the

leader, whereby individuals transcend their self-interest for the benefit of the

organization and develop a collective sense of mission and purpose (Bryman et

al., 1996) The idealized influence leader to make employees be admired,

respected, and trusted The employees ensure leader with their charismatic

personality and attracted employees to imitate them At the same time, these

leader were endowed by employees have extraordinary capabilities, persistence

and determination (Bass & Riggio, 2006) Bass and Avolio(1994) purports that

in the idealized influence leader give signification to employees’ needs more

than leaders’ own, develop and practice higher ethical and moral principles and

do not use authority for their benefit

Second, inspirational motivation contains enthusiastically building shared

vision or shared purposes Inspirational motivation was an aspect of charismatic

leadership in which leaders inspire the employees by emotional appeals and good

visions, increasing employees' goals, and showing passion and hopefulness

(Northouse, 2010) Inspirational leadership is communication a vision with

fluency and confidence, raising optimism, warmth, and giving inspirational to

employees (Yammarino & Dubnisky, 1994) As a result of these behaviors,

employees can feel an affection attachment and identification with

transformational leader Inspirational motivation can make followers achieve

ambitious goals through producing enthusiastic excitement, increasing followers’

expectations and communicating confidence (Bass & Avolio, 2000)

Third, intellectual stimulation was referred a transformational leader

stimulates their employees’ struggles, through encouraging questioning and

critical reflection to increase employees’ innovation and creativity (Bass &

Avolio, 1994) Intellectual stimulation was encouraging employees to adopt new

perspectives and new idea how their work can be completed best The leaders

encourage employees to try out new behaviors or to find new solutions to solve

old problems Northouse (2010) proposed that in the intellectual stimulation

14 leadership also encourages employee to challenge their viewpoint and morals,

and the leader's philosophy

The fourth one was individualized consideration means that a

transformational leader through performing the role of a mentor to focuses on

employees’ success and development to their highest level (Avolio, 1999)

Individualized consideration was the behavior of leadership that conducive to

employee’s satisfaction by giving close attention to the individual needs of

employee, to be a mentor or coach for employee, and inspire employee to develop

and self-actualize

2.1.2 Job satisfaction

Job satisfaction is a topic which has derived attention of not only

organizational employees but also of researchers (Lu et al., 2005) Job

satisfaction is the emotional response of an individual toward his or her job or

place of job coming out from his or her experience from the job Luthans (2007,

p.141) defined job satisfaction as “a pleasurable or positive emotional state

resulting from the appraisal of one’s job or job experience” Job satisfaction

ultimately leads to job performance and organizational commitment which

ensures organizational success (Spector, 2003)

Job satisfaction has been defined differently by numerous researchers,

scholars often defined as the extent to which a job meets the needs ofanemployee

and provides him/her with pleasure or people like their jobs (Spector, 1997)

Locke (1976) perceives job satisfaction as an emotional state resulting from the

evaluation or appraisal of employee’s job experiences This emotional

satisfaction was achieved when an employee’s job offers something that

employee feels was worthwhile (Nguni et al., 2006; Lofquist & Dawis, 1991)

Some researchers defined that job satisfaction which an employee was positive

or negatively feeling about the job (Odom et al., 1990) The more satisfied and

happy employees were those which happy with their job, more productive and

profitable for the organization (Saari & Judge, 2004) Robbins (2005) defined job

satisfaction as an employee collection of feelings that an individual holds towards

their job In the wider sense, job satisfaction referred to employee cognition that

employees contributing to the overall achievement of organizational goals

(Guimareas, 1996; Weiss et al., 1976) Whereas, others consider defined job

satisfaction to be the attitude or feeling that an employee has towards his/her job

(Evans, 1999; Roberts, 2001; Smith et al., 1969) Literature suggests that a lot of

factors influence employee job satisfaction, including: wages, fringe benefits, co-

workers, supervisor, achievement and opportunities of promotion Based on the

others scholars thinks that the employees was the degree of fit between the job

features and employees’ expectations, employees were relatively more satisfied

with their jobs when met employee's expectations or exceeded, otherwise,

dissatisfaction would be the outcome of a work experience (Tutuncu & Kozak,

2007) Additionally, researchers often looked at job satisfaction in terms of

intrinsic and extrinsic rewards (Handel, 2005; Kalleberg, 1977)

Dawis and Lofquist (1990) explained that job satisfaction did not become

an issue until the early 19th century because prior to this time one’s career was

often predetermined by the occupation of that person’s parents Since that time a

lot of scholars were began to research the theories and measurements of job

satisfaction (Angela, 2008) Maslow (1943) had proposed the hierarchy of needs

theory, he concluded that individuals must satisfy five-level model ofa person's

needs, in which was physiological, safety, love, esteem, and self-actualization

(Figure 2.4) Based on the Maslow’s (1943) research, the organizations realized

that except to meet the lower-level needs of their employees which were the

physiological and safety needs, the organizations also have to meet the higher-

level needs, specifically self-esteem and self-actualization Siripak (2006)

explained the need hierarchy theory was the job satisfaction of employee to meet

their need or desires were fulfilled through his/her job and related work

atmosphere or through their job and related work atmosphere to achieve their

willing Maslow (1954) explained that the needs of an individual should satisfy

with the basic lower needs before higher levels If the individual dissatisfied with

basic lower needs, basic lower needs no longer serve as motivators for the

16 individual Moreover, Worrell (2004) referred the success of motivating people

depends on recognizing the needs that are unsatisfied and helping the individual

to meet those needs

Intrinsic satisfaction

Job satisfaction was the degree that how much the people like their jobs

Job satisfaction as a multidimensional complicated construct can be divided into

two dimensions which were intrinsic job satisfaction and extrinsic job satisfaction

(Sharp, 2008) Kalleberg (1977) also explained that job satisfaction consists of

two components These were intrinsic which referring to the work itself and

extrinsic which representing facets of the job external to the task itself for the job

satisfaction Herzberg (1966) suggested that composed of intrinsic and extrinsic

are two factors of job satisfaction as well The factors of intrinsic include

autonomy and responsibility for the work Have a lot of scholars explained that

definition of intrinsic job satisfaction was an attitude for individual toward work

based in internal factors such as work types, achievement and utilization ability

(Wanous & Lawler, 1972; Weiss, et al., 1967) Hirschfeld (2000) gave another

definition of intrinsic job satisfaction that was assesses the nature of the job tasks

themselves, it was in the intrinsic of job such as development of professional

opportunities and other similar factors William and Hazer (1986) gave other

defined for the intrinsic job satisfaction refers to an employee's emotional

condition Intrinsic job satisfaction was derived from the individual,

psychological value of employee and the work itself, employee can administered

satisfactions by themselves such as feelings of accomplishment and personal

growth (Mohammad et al., 2011)

2.3.2 Extrinsic satisfaction

Numerous researchers had explained definition of extrinsic job

satisfaction is an attitude for individual toward work based on the external or

environmental factors such as working environmental, supervision, and co-

workers (Wanous & Lawler, 1972; Weiss, et al., 1967) Another researcher said

that extrinsic job satisfaction assesses of the working situation outside the job

that were external to the job tasks such as wages, benefits and bonuses Page

(Hirschfeld, 2000) Extrinsic job satisfaction was derived from outside the

individual or external environment and employee cannot control extrinsic job

satisfaction by individual, the benefits of extrinsic job satisfaction associated with

doing the job rather than the work itself such as job security, fringe benefits,

promotion prospect and work condition (Mohammad et al., 2011) Herzberg, et

al., (1957) made a distinction between intrinsic and extrinsic factors of job

satisfaction Characteristic of the job was involved in the intrinsic factors, and the

work environment was concerned with the extrinsic satisfaction Researchers

found that intrinsic factors have relevance with job satisfaction and extrinsic

factors were related to job dissatisfaction

The present study used Mohrman-Cooke-Mohrman Job Satisfaction Scale

(MCMJSS) and along with the Multifactor Leadership Questionnaire (MLQ) to

measure the employee's job satisfaction The MCMJSS was developed by

Mohrman, et al., (1977) and the MLQ developed by Weiss, et al., (1967), the

aims of the MCMJSS and MLQ to use in this study was to measure employees’

self-perceived job satisfaction with a specific focus on leadership styles,

organizational commitment and both facets (intrinsic and extrinsic) of job

satisfaction (Mohrman et al., 1977) In this study, the employee's job satisfaction

was divided into intrinsic and extrinsic job satisfaction Personal growth and

development, achievement and expectations and self-respect were included in the

intrinsic job satisfaction The extrinsic job satisfaction facets contained fair

treatment, supervisor/leader and the opportunity to participate in the

determination of goals' organization

2.1.3 The relationship between leadership and employee’s job satisfaction

Although there are numerous leadership styles which could have an

impact on employees’ job satisfaction and their organizational commitment but

we are mainly concerned with transformational leadership We choose

transformational leadership because of its supportive, productive and innovative

nature Cumming et al (2010) stated that leadership that is concerned only with

the output of the workers and do not care about their feelings failed to attain best

efforts of the staff The study suggested that transformational leadership should

18

be adopted to improve workers satisfaction, selection, work environment and to

avoid employee turnover Miles and Mangold

(2002) proclaimed that job satisfaction is facilitated by leaders’

performance and effective supervisory interaction with employees Leader’s

capability to identify and solve the conflicts of employees determined the

employees’ perception about leaders’ performance AL-Hussami (2007)

concluded that transformational leadership positively effects the employees’ job

satisfaction Hamidifar (2009) conducted a study in Islamic Azad University in

Tehran and explored that among different leadership styles transformational

positively determine the employees’ job satisfaction Employees are more

satisfied with transformational leadership than any other style

2.2 Organizational commitment

Luthans (2007, p.147.) stated organizational commitment as “an attitude

reflecting employees’ loyalty to their organization and is an ongoing process

through which organizational participants express their concern for the

organization and its continued success and well-being” Henkin and Marchiori

(2003) defined organizational commitment as a feeling of employees which force

them to be the part of their organization and recognize the goals, values, norms

and ethical standards of an organization Shaw (2003) identified three dimensions

of organizational commitment: affective, continuance and normative

commitment Positive, sincere and utmost involvement of employee for its

organization is called affective commitment

Continuance commitment can be seen when individual is committed with the

organization because of some specific benefits like pension, insurance, medical

and other fringe benefits Employees’ Commitment with the organization

because of the ethical standards or social norms is called normative commitment

According to Tella et al (2007) Organizational commitment is the strongest

motivator that highly affects persons’ intentions to perform well, increases his

efficiency, and improves his skills Organizational commitment is important for

organizations because it is a good predictor of organizational goals and