The Effect of Transformational Leadership Style on Employees Job Satisfaction and Job Performance: A Case of Apparel Manufacturing Industry in Sri Lanka

Abstract

Leading employees for success is a challenging task in any organization. Hence, positive relationship between leader and employee is essential for better outcomes. This study intended to explore the effect of Leadership Style on employees’ job satisfaction and job performance in ABC apparel manufacturing company in Sri Lanka. 70 subordinates age from 25 to 45 (40 males and 30 females) were selected as respondents using stratified random sampling. The Multifactor Leadership Questionnaire was used to measure the transformational Leadership style. Job Performance was measured based on the scaled developed by Borman & Motowidlo’s, and Job Satisfaction was measured based on the scale developed by Porter & Lawler, and Organ. Face to face interview method was performed and data was analyzed using SPSS 20. The findings exhibit that Transformational Leadership has a positive significant relationship with job satisfaction (r=0.71) and job performance (r=0.74). It indicates when the qualities of transformational leadership increased the job satisfaction and thereby job performance of employees increase. Hence, the hypothesis one (H1), transformational leadership have a positive significant influence on job satisfaction is accepted. The second hypothesis (H2), transformational leadership has a positive significant influence on job performance is also accepted. The third hypothesis (H3), there is a positive significant reciprocal relationship between job satisfaction and job performance (r= 0.70) is accepted. Therefore, findings suggested leaders to develop transformational leadership qualities to improve employees’ job satisfaction as well as overall job performance.