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

Bachelors of Arts in Business Administration (Hons) GF06B1BA

Supervised By: Mrs. Kanchanie Jayawardena

Staffordshire University

August 2007, Colombo

TABLE OF CONTENTS
ABSTRACT...................................................................................................................................................13 ACKNOWLEDGEMENT...........................................................................................................................14 CHAPTER 1..................................................................................................................................................15 1.0 INTRODUCTION .................................................................................................................................15 1.1 INTRODUCTIONS TO RESEARCH ...................................................................................................................15 1.1.1 Introduction to Transformational leadership styles ...................................................................15 1.1.2 Introduction to Job-satisfaction...................................................................................................16 1.1.3 Introduction to the Sri Lankan Commercial Banking Industry...................................................17 1.2 PROBLEM BACKGROUND............................................................................................................................18 1.3 RESEARCH ISSUES.....................................................................................................................................19 1.4 OBJECTIVES OF THE STUDY.........................................................................................................................20 1.5 SIGNIFICANCE OF THIS STUDY.....................................................................................................................21 1.5.1 Theoretical Significance..............................................................................................................21 1.5.2 SOCIAL SIGNIFICANCE ...........................................................................................................................21 1.5.3 ORGANIZATIONAL SIGNIFICANCE..............................................................................................................21 1.6 LIMITATIONS OF THE STUDY .....................................................................................................................22 1.6.1 De-Limitations ...........................................................................................................................22 1.6.2 Sample size...................................................................................................................................23 1.6.3 Variables......................................................................................................................................23 1.6.3 Feed back.....................................................................................................................................24 1.6.4 Time.............................................................................................................................................24 1.7 SUMMARY OF CHAPTER 1..........................................................................................................................24 CHAPTER 2..................................................................................................................................................25 2.0 LITERATURE REVIEW .....................................................................................................................25 2.1 INTRODUCTION ........................................................................................................................................25 2.2 LEADERSHIP AND LEADERSHIP STYLES.........................................................................................................26 2.2.1 Transformational leadership.......................................................................................................27 2.2.2 Transactional leadership.............................................................................................................27 2.2.3 Laissez-faire leadership...............................................................................................................28 2.3 PREVIOUS RESEARCH FINDINGS OR EMPIRICAL EVIDENCE ................................................................................29 2.4 INDEPENDENT VARIABLE............................................................................................................................32 2.4.1 Transformational leadership ......................................................................................................32 2.4.2 Characteristics of Transformational leadership behaviours ......................................................34 2.4.2.1 Idealized influence....................................................................................................................35 2.4.2.2 Inspirational motivation...........................................................................................................37 2.4.2.3 Intellectual stimulation.............................................................................................................39 2.4.2.4 Individualized consideration....................................................................................................41 2.4.3 Demographic characteristics of managers (Age, marital status, sex, level of education, length of time in position)................................................................................................................................43 2.5 DEPENDENT VARIABLE ..............................................................................................................................45 2.5.1 Employees Job satisfaction..........................................................................................................45 2.5.2 Work conditions .........................................................................................................................47 2.5.3 Supervision .................................................................................................................................48 2.5.4 Pay and salary ............................................................................................................................49 2.5.5 Career development ....................................................................................................................50 2.6 SUMMARY OF CHAPTER 2..........................................................................................................................52 CHAPTER 3..................................................................................................................................................53

3.0 RESEARCH DESIGN............................................................................................................................53 3.1 CONCEPTUAL FRAMEWORK........................................................................................................................53 3.1 LIST OF HYPOTHESES THAT WERE FORMULATED............................................................................................55 3.2 SUMMARY OF CHAPTER 3..........................................................................................................................57 CHAPTER 4..................................................................................................................................................58 4.0 METHODOLOGY.................................................................................................................................58 4.1 INTRODUCTION TO THE CHAPTER.................................................................................................................58 4.2 RESEARCH APPROACH................................................................................................................................58 4.3 RESEARCH DESIGN ...................................................................................................................................59 4.3 RESEARCH STRATEGY................................................................................................................................59 4.4 RESPONDENTS AND SAMPLING PROCEDURE ..................................................................................................59 4.4.1 Sampling .....................................................................................................................................59 4.4.2 Research procedure ....................................................................................................................60 4.5 DATA COLLECTION AND DATA ANALYSIS METHODS........................................................................................60 4.6 DATA COLLECTION....................................................................................................................................61 4.6.1 Primary data ...............................................................................................................................61 4.6.2 Secondary data ...........................................................................................................................61 4.6.3 Designing the questionnaire........................................................................................................61 4.6.4 Development of the Questionnaire..............................................................................................62 4.6.5 Pilot Study....................................................................................................................................62 4.6.6 Distribution of the questionnaire.................................................................................................62 4.6.7 Measurement of variables in the Questionnaire..........................................................................63 4.7 STATISTICAL TREATMENT OF DATA.............................................................................................................64 4.8 JUSTIFICATION OF THE CHOSEN METHOD.......................................................................................................64 4.9 SUMMARY OF CHAPTER 4..........................................................................................................................65 5.0 ANALYSIS AND FINDINGS ...............................................................................................................66 5.1 INTRODUCTION TO CHAPTER........................................................................................................................66 5.2DESCRIPTIVE ANALYSIS..............................................................................................................................66 5.2.1Gender..........................................................................................................................................66 5.2.2 Age...............................................................................................................................................67 5.2.3 Education level............................................................................................................................68 5.2.4 Income level.................................................................................................................................69 5.2.5 Experience ..................................................................................................................................69 5.2.6 Designation .................................................................................................................................70 5.2.7 Idealized Influence ......................................................................................................................71 5.2.8 Inspirational Motivation..............................................................................................................72 5.2.9 Intellectual Stimulation................................................................................................................73 5.2.10 Individualized Consideration ....................................................................................................74 5.1.11 Supervision ...............................................................................................................................75 5.1.12 Salary ........................................................................................................................................76 5.1.13 working condition mean ...........................................................................................................77 5.1.14 Achievement and Career opportunities.....................................................................................79 5.1.15 Overall leadership style.............................................................................................................80 5.1.16 Overall job satisfaction .............................................................................................................81 5.2 MANAGERS DEMOGRAPHIC VARIABLES BASE ON DATA GATHERED FORM MANAGERS............................................82 5.2.1 Managers gender........................................................................................................................82 5.2.2 Managers Age..............................................................................................................................82 5.2.3 Managers Educational level.......................................................................................................83 5.2.4 Managers Experience level..........................................................................................................84 5.2.5 Managers Income level................................................................................................................85 5.3 RELIABILITY ANALYSIS OF THE QUESTIONNAIRE...........................................................................................86 5.4 RESULTS OF THE REGRESSION ANALYSIS.....................................................................................................86

5.4.1 H1 ...............................................................................................................................................87 5.4.2 H2................................................................................................................................................87 5.4.3 H3................................................................................................................................................88 5.4.4 H4................................................................................................................................................88 5.4.5 H5................................................................................................................................................89 5.4.6 H6................................................................................................................................................89 5.4.7 H7................................................................................................................................................90 5.4.8 H8................................................................................................................................................90 5.4.9 H9................................................................................................................................................91 5.4.10 H10............................................................................................................................................91 5.4.11 H11............................................................................................................................................92 5.4.12 H12............................................................................................................................................92 5.4.13 H13............................................................................................................................................93 5.4.14 H14............................................................................................................................................93 5.4.15 H15............................................................................................................................................94 5.4.16 H16............................................................................................................................................94 5.4.17 H17............................................................................................................................................95 5.4.18 H18............................................................................................................................................96 5.4.19 H19 ...........................................................................................................................................96 5.4.20. H20...........................................................................................................................................97 5.4.21 H21............................................................................................................................................97 5.4.22 H22............................................................................................................................................98 5.4.23 H23............................................................................................................................................98 5.4.24 H24............................................................................................................................................99 5.4.25 H25............................................................................................................................................99 5.4.26 H26..........................................................................................................................................100 5.5 SUMMARY OF TESTED HYPOTHESES...........................................................................................................100 5.6 FURTHER FINDINGS ................................................................................................................................103 5.6.1 Hypotheses testing for Transformational Leadership styles and Supervision. .........................104 5.6.2 Hypotheses testing for Leadership styles and Salary ..............................................................105 5.6.3 Hypotheses testing for Leadership styles and Work condition .................................................107 5.6.4 Hypotheses testing for Leadership styles and Career opportunities .......................................109 5.6.5 Hypotheses testing for Leadership styles and over all job-satisfaction of subordinates...........110 5.7 SUMMARY OF CHAPTER 5.........................................................................................................................113 CHAPTER 6................................................................................................................................................113 6.0 DISCUSSION AND IMPLICATIONS...............................................................................................113 6.1 INTRODUCTION TO THE CHAPTER...............................................................................................................113 6.2 DISCUSSION AND FINDINGS ......................................................................................................................113 6.3 IDEALIZED INFLUENCE.............................................................................................................................114 6.4 INSPIRATIONAL MOTIVATION.....................................................................................................................115 6.5 INTELLECTUAL STIMULATION....................................................................................................................115 6.6 INDIVIDUALIZED CONSIDERATION...............................................................................................................116 6.7 TRANSFORMATIONAL LEADERSHIP STYLE....................................................................................................117 6.8 DEMOGRAPHIC VARIABLES OF MANAGERS ..................................................................................................118 6.9 COMPETITIVE COMPARISON PRIVATE AND PUBLIC BANKS.............................................................................120 6.10 SUMMARY OF CHAPTER 6......................................................................................................................124 CHAPTER 7................................................................................................................................................124 7.0 RECOMMENDATIONS.....................................................................................................................124 7.1 INTRODUCTION TO THIS CHAPTER...............................................................................................................124 7.2 RECOMMENDATIONS ON IDEALIZED INFLUENCE...........................................................................................125 7.3 RECOMMENDATIONS ON INSPIRATIONAL MOTIVATION....................................................................................125 7.4 RECOMMENDATIONS ON INTELLECTUAL STIMULATION...................................................................................126

7.5 RECOMMENDATIONS ON INDIVIDUALIZED CONSIDERATION .............................................................................126 7.7 SUMMARY OF CHAPTER 7........................................................................................................................128 CHAPTER 8................................................................................................................................................129 8.0 CONCLUSIONS AND FUTURE RESEARCH.................................................................................129 8.1 SUMMARY OF KEY FINDING OF THE RESEARCH ............................................................................................129 8.2 CONCLUSION..........................................................................................................................................130 8.2 FURTHER RESEARCH ..............................................................................................................................131 CHAPTER 9................................................................................................................................................133 9.0 REFERENCES AND BIBLIOGRAPHY...........................................................................................133 9.1 REFERENCES..........................................................................................................................................133 9.2 BIBLIOGRAPHY.......................................................................................................................................143 APPENDIX A (QUESTIONNAIRE)........................................................................................................144 APPENDIX B: META-ANALYSIS RESULTS .....................................................................................150 APPENDIX C: APPROVAL PAGE ........................................................................................................151 APPENDIX D..............................................................................................................................................153

Lists of Tables
TABLE 1: HYPOTHESIS RELATED TO IDEALIZED INFLUENCE ...............................................55 TABLE 2: HYPOTHESIS RELATED INSPIRATIONAL MOTIVATION..........................................55 TABLE 3: HYPOTHESIS RELATED INTELLECTUAL STIMULATION........................................56 TABLE 4: HYPOTHESIS RELATED INDIVIDUALIZED CONSIDERATION................................56 TABLE 5: HYPOTHESIS RELATED DEMOGRAPHIC CHARACTERISTICS...............................57 TABLE 6: POPULATION/ (SAMPLING FRAME).................................................................................60 TABLE 6: DEPENDENT VARIABLE MEASURES...............................................................................63 TABLE 7: INDEPENDENT VARIABLE MEASURES...........................................................................63 TABLE 8: GENDER....................................................................................................................................66 FIGURE 2: GENDER .................................................................................................................................67 TABLE 9: AGE.............................................................................................................................................67 FIGURE 3: AGE...........................................................................................................................................67 TABLE 10: EDUCATION LEVEL............................................................................................................68 FIGURE 4: EDUCATION LEVEL............................................................................................................68 TABLE 11: INCOME LEVEL....................................................................................................................69 FIGURE 5: INCOME LEVEL....................................................................................................................69 TABLE 12: EXPERIENCE IN THE INDUSTRY....................................................................................70 FIGURE 6: EXPERIENCE IN THE INDUSTRY....................................................................................70 TABLE 13: DESIGNATION.......................................................................................................................71 FIGURE 7: DESIGNATION.......................................................................................................................71 TABLE 14: IDEALIZED INFLUENCE....................................................................................................71 FIGURE 8: IDEALIZED INFLUENCE....................................................................................................72 TABLE 15: INSPIRATIONAL MOTIVATION.......................................................................................72 FIGURE 9: INSPIRATIONAL MOTIVATION.......................................................................................73 TABLE 16: INTELLECTUAL STIMULATION......................................................................................73 FIGURE 10: INTELLECTUAL STIMULATION....................................................................................74 TABLE 17: INDIVIDUALIZED CONSIDERATION..............................................................................74 FIGURE 11: INDIVIDUALIZED CONSIDERATION............................................................................75 TABLE 18: SUPERVISION........................................................................................................................75 FIGURE 12: SUPERVISION......................................................................................................................76 TABLE 19: SALARY ..................................................................................................................................76 FIGURE 13: SALARY.................................................................................................................................77

TABLE 20: WORK CONDITION..............................................................................................................77 FIGURE 14: WORK CONDITION............................................................................................................78 TABLE 21: ACHIEVEMENT AND CAREER OPPORTUNITIES.......................................................79 FIGURE 15: CAREER OPPORTUNITIES..............................................................................................79 TABLE 21: OVERALL LEADERSHIP STYLE.......................................................................................80 FIGURE 16: OVERALL LEADERSHIP STYLE.....................................................................................80 TABLE 22: OVERALL JOB-SATISFACTION........................................................................................81 FIGURE 17: OVERALL JOB-SATISFACTION......................................................................................81 TABLE 23: MANAGERS GENDER.........................................................................................................82 FIGURE 18: MANAGERS GENDER.......................................................................................................82 TABLE 24: MANAGERS AGE.................................................................................................................83 FIGURE 19: MANAGERS AGE...............................................................................................................83 TABLE 25: MANAGERS EDUCATION LEVEL...................................................................................83 FIGURE 19: MANAGERS EDUCATIONAL LEVEL...........................................................................84 TABLE 26: MANAGERS EXPERIENCE LEVEL.................................................................................84 FIGURE 20: MANAGERS EXPERIENCE LEVEL...............................................................................85 TABLE 27: MANAGERS INCOME LEVEL..........................................................................................85 FIGURE 21: MANAGERS INCOME LEVEL .......................................................................................85 TABLE 28: RELIABILITY ANALYSIS...................................................................................................86 TABLE 29: HYPOTHESES 1....................................................................................................................87 TABLE 30: HYPOTHESES 2.....................................................................................................................88 TABLE 31: HYPOTHESES 3.....................................................................................................................88 TABLE 32: HYPOTHESES 4.....................................................................................................................89 TABLE 33: HYPOTHESES 5....................................................................................................................89 TABLE34: HYPOTHESES 6......................................................................................................................90 TABLE 35: HYPOTHESES 7.....................................................................................................................90 TABLE 36: HYPOTHESES 8 ....................................................................................................................91 TABLE 37: HYPOTHESES 9.....................................................................................................................91 TABLE 38: HYPOTHESES 10..................................................................................................................92 TABLE 19: HYPOTHESES 11 ..................................................................................................................92 TABLE 40: HYPOTHESES 12...................................................................................................................93 TABLE 21: HYPOTHESES 13 ..................................................................................................................93 TABLE 42: HYPOTHESES 14..................................................................................................................94 TABLE 43: HYPOTHESES 15...................................................................................................................94 TABLE 44: HYPOTHESES 16...................................................................................................................95 TABLE 45: HYPOTHESES 17...................................................................................................................95 TABLE 46: HYPOTHESES 18...................................................................................................................96

TABLE 47: HYPOTHESES 19...................................................................................................................96 TABLE 48: HYPOTHESES 20 ..................................................................................................................97 TABLE 49: HYPOTHESES 21...................................................................................................................97 TABLE 50: HYPOTHESES 22...................................................................................................................98 TABLE 51: HYPOTHESES 23...................................................................................................................98 TABLE 52: HYPOTHESES 24...................................................................................................................99 TABLE 53: HYPOTHESES 25...................................................................................................................99 TABLE 54: HYPOTHESES 26.................................................................................................................100 TABLE 55: SUMMARY OF TESTED HYPOTHESES.........................................................................100 TABLE 56: MODEL SUMMARY FOR LEADERSHIP STYLES AND SUPERVISION.................104 TABLE 57: COEFFICIENTS FOR LEADERSHIP STYLES AND SUPERVISION.........................104 FIGURE 22: IDEALIZED INFLUENCE COMPETITIVE COMPARISON......................................120 FIGURE 23: INSPIRATIONAL MOTIVATION COMPETITIVE COMPARISON........................121 FIGURE 24: INTELLECTUAL STIMULATION COMPETITIVE COMPARISON.......................121 FIGURE 25: INDIVIDUALIZED CONSIDERATION COMPETITIVE COMPARISON...............122 FIGURE 26: OVERALL JOB-SATISFACTION COMPETITIVE COMPARISON.........................123 TABLE 57: PUBLIC AND PRIVATE BANKS LEADERSHIP STYLES............................................123 TABLE 37: HYPOTHESIS 1....................................................................................................................162 TABLE 48:HYPOTHESIS 2.....................................................................................................................162 TABLE 59:HYPOTHESIS 3.....................................................................................................................163 TABLE 60: HYPOTHESIS 4....................................................................................................................163 TABLE 60: HYPOTHESIS 5....................................................................................................................164 TABLE 61:HYPOTHESIS 6.....................................................................................................................164 TABLE 62: HYPOTHESIS 7....................................................................................................................165 TABLE 63: HYPOTHESIS 8....................................................................................................................165 TABLE 64: HYPOTHESIS 9....................................................................................................................166 TABLE 65: HYPOTHESIS 10..................................................................................................................166 TABLE 66: HYPOTHESIS 11..................................................................................................................167 TABLE 67: HYPOTHESIS 12..................................................................................................................168 TABLE 68: HYPOTHESIS 13..................................................................................................................168 TABLE 69: HYPOTHESIS 14..................................................................................................................169 TABLE 70: HYPOTHESIS 15..................................................................................................................169 TABLE 71: HYPOTHESIS 13..................................................................................................................170 TABLE 72: HYPOTHESIS 17..................................................................................................................170 TABLE 73: HYPOTHESIS 14..................................................................................................................171 TABLE 74: HYPOTHESIS 19..................................................................................................................171 TABLE 75: HYPOTHESIS 20..................................................................................................................172

TABLE 76: HYPOTHESIS 21..................................................................................................................172 TABLE 77: HYPOTHESIS 22..................................................................................................................172 TABLE 78: HYPOTHESIS 23..................................................................................................................172 TABLE 79: HYPOTHESIS 24..................................................................................................................173 TABLE 80: HYPOTHESIS 25..................................................................................................................173 TABLE 81: MULTIPLE REGRESSION 1..............................................................................................174 TABLE 82: MULTIPLE REGRESSIONS 2............................................................................................174 TABLE 83: MULTIPLE REGRESSION 3..............................................................................................175

Lists of Figures
TABLE 1: HYPOTHESIS RELATED TO IDEALIZED INFLUENCE ...............................................55 TABLE 2: HYPOTHESIS RELATED INSPIRATIONAL MOTIVATION..........................................55 TABLE 3: HYPOTHESIS RELATED INTELLECTUAL STIMULATION........................................56 TABLE 4: HYPOTHESIS RELATED INDIVIDUALIZED CONSIDERATION................................56 TABLE 5: HYPOTHESIS RELATED DEMOGRAPHIC CHARACTERISTICS...............................57 TABLE 6: POPULATION/ (SAMPLING FRAME).................................................................................60 TABLE 6: DEPENDENT VARIABLE MEASURES...............................................................................63 TABLE 7: INDEPENDENT VARIABLE MEASURES...........................................................................63 TABLE 8: GENDER....................................................................................................................................66 FIGURE 2: GENDER .................................................................................................................................67 TABLE 9: AGE.............................................................................................................................................67 FIGURE 3: AGE...........................................................................................................................................67 TABLE 10: EDUCATION LEVEL............................................................................................................68 FIGURE 4: EDUCATION LEVEL............................................................................................................68 TABLE 11: INCOME LEVEL....................................................................................................................69 FIGURE 5: INCOME LEVEL....................................................................................................................69 TABLE 12: EXPERIENCE IN THE INDUSTRY....................................................................................70 FIGURE 6: EXPERIENCE IN THE INDUSTRY....................................................................................70 TABLE 13: DESIGNATION.......................................................................................................................71 FIGURE 7: DESIGNATION.......................................................................................................................71 TABLE 14: IDEALIZED INFLUENCE....................................................................................................71

FIGURE 8: IDEALIZED INFLUENCE....................................................................................................72 TABLE 15: INSPIRATIONAL MOTIVATION.......................................................................................72 FIGURE 9: INSPIRATIONAL MOTIVATION.......................................................................................73 TABLE 16: INTELLECTUAL STIMULATION......................................................................................73 FIGURE 10: INTELLECTUAL STIMULATION....................................................................................74 TABLE 17: INDIVIDUALIZED CONSIDERATION..............................................................................74 FIGURE 11: INDIVIDUALIZED CONSIDERATION............................................................................75 TABLE 18: SUPERVISION........................................................................................................................75 FIGURE 12: SUPERVISION......................................................................................................................76 TABLE 19: SALARY ..................................................................................................................................76 FIGURE 13: SALARY.................................................................................................................................77 TABLE 20: WORK CONDITION..............................................................................................................77 FIGURE 14: WORK CONDITION............................................................................................................78 TABLE 21: ACHIEVEMENT AND CAREER OPPORTUNITIES.......................................................79 FIGURE 15: CAREER OPPORTUNITIES..............................................................................................79 TABLE 21: OVERALL LEADERSHIP STYLE.......................................................................................80 FIGURE 16: OVERALL LEADERSHIP STYLE.....................................................................................80 TABLE 22: OVERALL JOB-SATISFACTION........................................................................................81 FIGURE 17: OVERALL JOB-SATISFACTION......................................................................................81 TABLE 23: MANAGERS GENDER.........................................................................................................82 FIGURE 18: MANAGERS GENDER.......................................................................................................82 TABLE 24: MANAGERS AGE.................................................................................................................83 FIGURE 19: MANAGERS AGE...............................................................................................................83 TABLE 25: MANAGERS EDUCATION LEVEL...................................................................................83 FIGURE 19: MANAGERS EDUCATIONAL LEVEL...........................................................................84 TABLE 26: MANAGERS EXPERIENCE LEVEL.................................................................................84 FIGURE 20: MANAGERS EXPERIENCE LEVEL...............................................................................85 TABLE 27: MANAGERS INCOME LEVEL..........................................................................................85 FIGURE 21: MANAGERS INCOME LEVEL .......................................................................................85 TABLE 28: RELIABILITY ANALYSIS...................................................................................................86 TABLE 29: HYPOTHESES 1....................................................................................................................87 TABLE 30: HYPOTHESES 2.....................................................................................................................88 TABLE 31: HYPOTHESES 3.....................................................................................................................88 TABLE 32: HYPOTHESES 4.....................................................................................................................89 TABLE 33: HYPOTHESES 5....................................................................................................................89 TABLE34: HYPOTHESES 6......................................................................................................................90 TABLE 35: HYPOTHESES 7.....................................................................................................................90

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TABLE 36: HYPOTHESES 8 ....................................................................................................................91 TABLE 37: HYPOTHESES 9.....................................................................................................................91 TABLE 38: HYPOTHESES 10..................................................................................................................92 TABLE 19: HYPOTHESES 11 ..................................................................................................................92 TABLE 40: HYPOTHESES 12...................................................................................................................93 TABLE 21: HYPOTHESES 13 ..................................................................................................................93 TABLE 42: HYPOTHESES 14..................................................................................................................94 TABLE 43: HYPOTHESES 15...................................................................................................................94 TABLE 44: HYPOTHESES 16...................................................................................................................95 TABLE 45: HYPOTHESES 17...................................................................................................................95 TABLE 46: HYPOTHESES 18...................................................................................................................96 TABLE 47: HYPOTHESES 19...................................................................................................................96 TABLE 48: HYPOTHESES 20 ..................................................................................................................97 TABLE 49: HYPOTHESES 21...................................................................................................................97 TABLE 50: HYPOTHESES 22...................................................................................................................98 TABLE 51: HYPOTHESES 23...................................................................................................................98 TABLE 52: HYPOTHESES 24...................................................................................................................99 TABLE 53: HYPOTHESES 25...................................................................................................................99 TABLE 54: HYPOTHESES 26.................................................................................................................100 TABLE 55: SUMMARY OF TESTED HYPOTHESES.........................................................................100 TABLE 56: MODEL SUMMARY FOR LEADERSHIP STYLES AND SUPERVISION.................104 TABLE 57: COEFFICIENTS FOR LEADERSHIP STYLES AND SUPERVISION.........................104 FIGURE 22: IDEALIZED INFLUENCE COMPETITIVE COMPARISON......................................120 FIGURE 23: INSPIRATIONAL MOTIVATION COMPETITIVE COMPARISON........................121 FIGURE 24: INTELLECTUAL STIMULATION COMPETITIVE COMPARISON.......................121 FIGURE 25: INDIVIDUALIZED CONSIDERATION COMPETITIVE COMPARISON...............122 FIGURE 26: OVERALL JOB-SATISFACTION COMPETITIVE COMPARISON.........................123 TABLE 57: PUBLIC AND PRIVATE BANKS LEADERSHIP STYLES............................................123 TABLE 37: HYPOTHESIS 1....................................................................................................................162 TABLE 48:HYPOTHESIS 2.....................................................................................................................162 TABLE 59:HYPOTHESIS 3.....................................................................................................................163 TABLE 60: HYPOTHESIS 4....................................................................................................................163 TABLE 60: HYPOTHESIS 5....................................................................................................................164 TABLE 61:HYPOTHESIS 6.....................................................................................................................164 TABLE 62: HYPOTHESIS 7....................................................................................................................165 TABLE 63: HYPOTHESIS 8....................................................................................................................165 TABLE 64: HYPOTHESIS 9....................................................................................................................166

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TABLE 65: HYPOTHESIS 10..................................................................................................................166 TABLE 66: HYPOTHESIS 11..................................................................................................................167 TABLE 67: HYPOTHESIS 12..................................................................................................................168 TABLE 68: HYPOTHESIS 13..................................................................................................................168 TABLE 69: HYPOTHESIS 14..................................................................................................................169 TABLE 70: HYPOTHESIS 15..................................................................................................................169 TABLE 71: HYPOTHESIS 13..................................................................................................................170 TABLE 72: HYPOTHESIS 17..................................................................................................................170 TABLE 73: HYPOTHESIS 14..................................................................................................................171 TABLE 74: HYPOTHESIS 19..................................................................................................................171 TABLE 75: HYPOTHESIS 20..................................................................................................................172 TABLE 76: HYPOTHESIS 21..................................................................................................................172 TABLE 77: HYPOTHESIS 22..................................................................................................................172 TABLE 78: HYPOTHESIS 23..................................................................................................................172 TABLE 79: HYPOTHESIS 24..................................................................................................................173 TABLE 80: HYPOTHESIS 25..................................................................................................................173 TABLE 81: MULTIPLE REGRESSION 1..............................................................................................174 TABLE 82: MULTIPLE REGRESSIONS 2............................................................................................174 TABLE 83: MULTIPLE REGRESSION 3..............................................................................................175

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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 industrys 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 subordinates 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. A positive, moderate correlation was found between Job satisfaction of subordinates and Transformational leadership of bank managers (Beta= 0.647, R square= 0.418, P= 0.000). And no significant relationship was identified between managers demographic variables and Subordinates Job-satisfaction. The findings supported a positive relationship between transformational leadership styles and subordinates job satisfaction. 13

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. 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.

15

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 companys 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). 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 Spectors (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.

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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 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 17

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 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

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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 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

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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. 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.

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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

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

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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. 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

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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

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 mismatchs were not included.

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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

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. 2. Respondents could take a long time to complete and fill in the questionnaire. This would delay the time of data collection. 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.

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CHAPTER 2
2.0 LITERATURE REVIEW
2.1 Introduction
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).

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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 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

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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 leaders 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 organizations 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)

2.2.2 Transactional leadership

This is based on a series of exchange between leader and followers (Bass, 1985). Transactional leaders clarity followers 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 27

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 leaders role, or seek Direction and vision from else where in the organization. Key indicators of this style would be Avoids making decisions; Abdicates responsibilities; 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 leaders 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

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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, 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 leadership 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

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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 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 academics satisfaction or dissatisfaction with the

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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) 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 subordinatesexchanging 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.

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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 Burns (1978) and later developed by Bass (1985). Bass defines transformational supervision in terms of the leaders 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 organizations 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)

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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 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 were important in explaining an academics satisfaction or dissatisfaction with the 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 33

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, 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

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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) 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)

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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 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

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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 CEOs display of charisma (idealized influence) and their firms performance in increased sales, changes in market share, increased earnings and return on investment compared to their firms competitors. (Joseph, 2006) Ho1: There is a relationship between Idealized influence and supervision Ho2: There is a relationship between Idealized influence and Pay of subordinates Ho3: 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 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

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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 members 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) 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).

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Ho6: There is a relationship between Inspirational motivation and supervision Ho7: There is a relationship between Inspirational motivation and Pay of subordinates. Ho8: There is a relationship between Inspirational motivation and working conditions Ho9: There is a relationship between Inspirational motivation and career opportunities Ho10: 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 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.

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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, 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 supervision Ho12: There is a relationship between Intellectual stimulation and Pay of subordinates Ho13: 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

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2.4.2.4 Individualized consideration Transformational leaders pay special attention to each individuals 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 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; 41

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 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 opportunities Ho20: 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.

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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. 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 bosss 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

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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 were important in explaining an academics satisfaction or dissatisfaction with the 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 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 timerelated 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 44

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 managers staff/direct reports. Hogan, (2001) stated that self-reports are open to criticism 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 45

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 employees affective reaction to a job, Based on comparing actual outcomes with desired outcomes. It is generally recognized as a 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).

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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 companys growth and success and recommend it as a good place work. 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 employees 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, todays 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

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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 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,

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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 opinions/ideas, have a high regard for employees judgment. 3 4 . 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. Decision Making: Decisions are timely; employees are involved, asked for their ideas, and have the necessary knowledge and information. Work Unit Management: Managers understand issues, show concern for employees well being, lead by example, and set clear priorities.

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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) 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. 50

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) 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.

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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 Jobsatisfaction 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 job satisfaction and improve patient care. Leadership style and empowerment influence job satisfaction among workers. Morrison, (1997)

2.6 Summary of Chapter 2 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.

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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 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
Transformational leadership style of managers
Idealized influence Inspirational motivation Intellectual Stimulation Individual consideration
TL4 TL2 TL A TL1

DEPENDENT VARIABLES
JSA

Job-Satisfaction of Subordinates Pay (Salary) Work conditions Career development Supervision

JS1 JS2

TL3 JS3 JS4 DC 1 DC 2 DC 3 DC 4

Demographic characteristics of managers Age Gender level of education Income level length position, of time in

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DC 5

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

TL1 = JS1, JS2, JS3 & JS4 TL2 = JS1, JS2, JS3 & JS4 TL3 = JS1, JS2, JS3 & JS4 TL4 = JS1, JS2, JS3 & JS4 TLA= JSA DC1 = JSA DC2 = JSA DC3 = JSA DC4 = JSA DC5 = JSA

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3.1 List of Hypotheses that were formulated

Table 1: Hypothesis related to Idealized influence

Hypothesis Related to Idealized influence 1 2. 3

Statistical Tool Used

Ho1 There is a relationship between Idealized influence and Linear Regression supervision Ho2 There is a relationship between Idealized influence and Pay Linear Regression of subordinates Ho3 There is a relationship between Idealized influence and Linear Regression working conditions. Ho4 There is a relationship between Idealized influence and career opportunities Ho5 Idealized influence correlates positively with Job Satisfaction

Linear Regression

Linear Regression

Table 2: Hypothesis related Inspirational motivation

Hypothesis Related to Inspirational motivation 6 7 8

Statistical Tool Used

Ho6 There is a relationship between Inspirational motivation and Linear Regression supervision Ho7 There is a relationship between Inspirational motivation and Linear Regression Pay of subordinates. Ho8 There is a relationship between Inspirational motivation and Linear Regression working conditions Ho9 There is a relationship between Inspirational motivation and Linear Regression career opportunities Ho10: Inspirational motivation correlates positively with Job Linear Regression Satisfaction

9 10

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Table 3: Hypothesis related Intellectual stimulation

Hypothesis Related to Intellectual stimulation 11 12 13

Statistical Tool Used

Ho11 There is a relationship between Intellectual stimulation and Linear Regression supervision Ho12 There is a relationship between Intellectual stimulation and Linear Regression Pay of subordinates Ho13 There is a relationship between Intellectual stimulation and Linear Regression working conditions. Ho14 There is a relationship between Intellectual stimulation and career opportunities

14

Linear Regression

15

Ho15 Intellectual stimulation correlates positively with Job Linear Regression Satisfaction

Table 4: Hypothesis related individualized consideration

Hypothesis Related to Individualized consideration 16 17 18 19 20 Ho16 There is a relationship between Individualized consideration and supervision 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 opportunities Ho20 Individualized consideration correlates positively with Job Satisfaction

Statistical Tool Used Linear Regression Linear Regression Linear Regression Linear Regression Linear Regression

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Table 5: Hypothesis related demographic characteristics

Hypothesis Related to Demographic characteristics managers 21 22 23 24 25 26 Ho21 There is a relationship between managers age and Jobsatisfaction. Ho22 There is a relationship between managers Gender and Jobsatisfaction. Ho23 There is a relationship between managers educational level and Job-satisfaction. Ho24 There is a relationship between managers income level and Job-satisfaction. Ho25 There is a relationship between managers experience level and Job-satisfaction. Ho26 There is a relationship between Transformational leadership style and Subordinates Job-satisfaction.

Statistical Tool Used ANOVA ANOVA ANOVA ANOVA ANOVA Linear Regression

3.2 Summary of Chapter 3 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.

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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.

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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. 59

Table 6: Population/ (Sampling Frame)

Population/(Sampling Frame) 100 500 1000 5000 50000 100000 1000000 25,000,000 Source: Anderson, 1996 p202.

5% 79 217 277 356 381 382 384 384

4% 85 272 375 535 593 596 599 600

3% 91 340 516 897 1044 1055 1065 1067

2% 96 413 705 1622 2290 2344 2344 2400

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.

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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.

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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 Jobsatisfaction 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

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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 Work Itself Pay Career development Supervision

Questions Section 4( 6) Section 4 (3) Section 4 (9) Section 4 (5)

Independent variables
Table 7: Independent variable measures

Measures Idealized influence. Transformational leadership Inspirational motivation. behaviours of managers Intellectual stimulation. Individualized consideration Demographic characteristics managers Age, of marital status, sex, level of education and length of time in position,

Questions Section 2( 1, 4, 8, 12, 16, 20, 24, 28,30,34) Section 2(2,5,9,13,17,21,25, 29, 31,35) Section 2 (6,10,14,18,22,26,32, 36, 38) Section 2( 3,7,11,15,19,23,27, 33,37) Demographic questions

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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) Spearmans Rank Correlation

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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.

4.9 Summary of Chapter 4 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.

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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 Cronbachs 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 (4Is) 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

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Gender

40% 60%

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 4155 and 3.4 percent were 56 or older years of age.
Table 9: Age

Age G roup
3% 4% 25 or under 49% 44% 26-40 41-55 56 or older

Figure 3: Age

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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

21%

7% O/L A/L 30% Undergraduate Graduate Post Gratuate Professional 28%

5% 9%

Figure 4: Education level

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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
4% 3% 10% 15% 28% Below 15000 15001-25000 25001-35000 35001-45000 45001-55000 55001 & above 40%

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.

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Table 12: Experience in the industry

Experience in the industry

6% 2% 3% 23% 40% less than 2 years betw een 2-5 years betw een 5-10 years betw een 10-15 years betw een 15-25 years more than 25 years 26%

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.

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Table 13: Designation

Designation

6% 3%

18% Traniee Banking Assistant Executive( Snr/Jur) Manager 40% Regional Manager

33%

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

71

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.

Idealized influence

200

150

Frequency

100

50

0 Not at all Once in a while Sometimes Fairly often Frequenntly

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 72

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

Percent

30

20

10

0 Not at all Once in a while Sometimes Fairly often Frequenntly

Inspirational Motivation

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 73

conclusion that overall the respondents agree that managers sometimes use intellectual stimulation leadership styles. The bar chart below depicts that the number of respondents who say sometimes and fairly often are almost equal.

Intellectual Stimulation

200

150

Frequency

100

50

0 Not at all Once in a while Sometimes Fairly often Frequenntly

Intellectual Stimulation

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

74

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 C onsideration

200

150

Frequency

100

50

0 N at all ot O nce in a while Som etim es Fairly often Frequenntly

Individualized C onsideration

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).

75

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.
Supervision mean

250

200

Frequency

150

100

50

0 Strongly Disagree Disagree Neither agree Nor Disagree Agree Strongly Agree

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 76

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

Frequency

100

50

0 Strongly Disagree Disagree Neither agree Nor Disagree Agree Strongly Agree

Salary mean

Figure 13: Salary

5.1.13 working condition mean

Table 20: work condition

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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

Frequency

100

50

0 Strongly Disagree Disagree Neither agree Nor Disagree Agree Strongly Agree

Working condition mean

Figure 14: Work condition

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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.

Achievem ent and Career developm ent

150

Frequency

100

50

0 Strongly Disagree Disagree Neither agree Nor Disagree Agree Strongly Agree

Achievem ent and Career developm ent

Figure 15: Career opportunities

79

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.
o verall lea dersh style ip

200

150

Frequency

100

50

0 N at all ot O nce in a w hile Som etim es Fairly often Frequenntly

overall leadership style

Figure 16: Overall Leadership style

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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

Frequency

100

50

0 Strongly Disagree Disagree Neither agree Nor Disagree Agree Strongly Agree

overall Jobsatisfaction

Figure 17: Overall Job-satisfaction

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5.2 Managers demographic variables base on data gathered form managers 5.2.1 Managers 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: Managers Gender
Managers gender Cumulative Percent 82.0 100.0

Valid

male female Total

Frequency 82 18 100

Percent 82.0 18.0 100.0

Valid Percent 82.0 18.0 100.0

Manger's Gender

18%

male female

82%

Figure 18: Managers Gender

5.2.2 Managers Age Out of the100 respondents subjected to the study the majority was of the age group of 3645 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.

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Table 24: Managers Age

Managers age Cumulative Percent 30.0 79.0 94.0 100.0

Valid

25 - 35 36-45 45-55 55 or older Total

Frequency 30 49 15 6 100

Percent 30.0 49.0 15.0 6.0 100.0

Valid Percent 30.0 49.0 15.0 6.0 100.0

Manger's Age

6% 15% 30% 25 - 35 36-45 45-55 55 or older 49%

Figure 19: Managers Age

5.2.3 Managers 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: Managers Education level
Managers education level Cumulative Percent 8.0 36.0 63.0 73.0 77.0 100.0

Valid

O/L A/L Undergraduate Graduate Post Graduate Professional Total

Frequency 8 28 27 10 4 23 100

Percent 8.0 28.0 27.0 10.0 4.0 23.0 100.0

Valid Percent 8.0 28.0 27.0 10.0 4.0 23.0 100.0

83

Managers education level

8% 23% 28% O/L A/L 4% 10% 27% Undergraduate Graduate Post Graduate Professional

Figure 19: Managers 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: Managers Experience Level

Managers experience level Cumulative Percent 10.0 41.0 62.0 84.0 100.0

Valid

between 2-5 years between 5-10 years between 10-15 years between 15-25 years more than 25 years Total

Frequency 10 31 21 22 16 100

Percent 10.0 31.0 21.0 22.0 16.0 100.0

Valid Percent 10.0 31.0 21.0 22.0 16.0 100.0

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Managers experience level

16%

10% betw een 2-5 years betw een 5-10 years 31% betw een 10-15 years betw een 15-25 years more than 25 years 21%

22%

Figure 20: Managers 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: Managers Income level
Managers income Cumulative Percent 25.0 54.0 77.0 100.0

Valid

25001-35000 35001-45000 45001 -55000 55001 & above Total

Frequency 25 29 23 23 100

Percent 25.0 29.0 23.0 23.0 100.0

Valid Percent 25.0 29.0 23.0 23.0 100.0

Managers income

23%

25% 25001-35000 35001-45000 45001 -55000 55001 & above 29%

23%

Figure 21: Managers Income level

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5.3 Reliability Analysis of the Questionnaire In order to check the reliability of the questionnaire the KMO Bartletts 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 Chronbachs Alpha value was calculated to measure the reliability of the questionnaire. The results are as follows:
Table 28: Reliability Analysis

Variables Idealized Influence Inspirational motivation Intellectual stimulation Individual consideration Supervision Pay/ salary Work condition Career Development Over all reliability

CRONBACHS 0.9120 0.9200 0.8940 0.8630 0.9120 0.7250 0.9430 0.9360 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

5.4 Results of the Regression Analysis

86

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 managers demographic variables and subordinates Jobsatisfaction. 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 Idealized Influence

Beta 0.941

R Square change 0.482

Sig. F change 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.

5.4.2 H2 There is a positive relationship between Idealized influence and salary.

87

A regression analysis was carried out to identify the relationship between Idealized 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.

Table 30: Hypotheses 2

Model Idealized Influence

Beta 0.485

R Square change 0.236

Sig. F change 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. 5.4.3 H3 There is a positive relationship between Idealized influence and work condition. A regression analysis was carried out to identify the relationship between Idealized 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.
Table 31: Hypotheses 3

Model Idealized Influence

Beta 0.411

R Square change 0.169

Sig. F change 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. 5.4.4 H4

88

There is a positive relationship between Idealized influence and career Achievements A regression analysis was carried out to identify the relationship between Idealized 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.
Table 32: Hypotheses 4

Model Idealized Influence

Beta 0.469

R Square change 0.220

Sig. F change 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. 5.4.5 H5 Idealized influence correlates positively with Job Satisfaction A regression analysis was carried out to identify the relationship between Idealized 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)
Table 33: Hypotheses 5

Model Idealized Influence

Beta 0.576

R Square change 0.332

Sig. F change 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. 5.4.6 H6 There is a positive relationship between Inspirational motivation and supervision.

89

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 Inspirational motivation

Beta 0.705

R Square change 0.497

Sig. F change 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

5.4.7 H7 There is a positive relationship between Inspirational motivation and salary. A regression analysis was carried out to identify the relationship between Inspirational 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.
Table 35: Hypotheses 7

Model Inspirational motivation

Beta 0.498

R Square change 0.248

Sig. F change 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 5.4.8 H8 There is a positive relationship between Inspirational motivation and work condition 90

A regression analysis was carried out to identify the relationship between Inspirational 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 square is not highly significant.
Table 36: Hypotheses 8

Model Inspirational motivation

Beta 0.525

R Square change 0.275

Sig. F change 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

5.4.9 H9 There is a positive relationship between Inspirational motivation and career Achievements A regression analysis was carried out to identify the relationship between Inspirational 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.
Table 37: Hypotheses 9

Model Inspirational motivation

Beta 0.546

R Square change 0.298

Sig. F change 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 5.4.10 H10

91

There is a positive relationship between Inspirational motivation and over all jobsatisfaction of subordinates A regression analysis was carried out to identify the relationship between Inspirational 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)
Table 38: Hypotheses 10

Model Inspirational motivation

Beta 0.651

R Square change 0.423

Sig. F change 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 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).
Table 19: Hypotheses 11

Model Intellectual stimulation

Beta 0.712

R Square change 0.506

Sig. F change 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

5.4.12 H12 There is a positive relationship between Intellectual stimulation and salary.

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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.
Table 40: Hypotheses 12

Model Intellectual stimulation

Beta 0.482

R Square change 0.232

Sig. F change 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

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 square is not highly significant.
Table 21: Hypotheses 13

Model Intellectual stimulation

Beta 0.388

R Square change 0.151

Sig. F change 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 5.4.14 H14 There is a positive relationship between Intellectual stimulation and career Achievements.

93

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.
Table 42: Hypotheses 14

Model Intellectual stimulation

Beta 0.480

R Square change 0.230

Sig. F change 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 5.4.15 H15 There is a positive relationship between Intellectual stimulation and over all jobsatisfaction 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).
Table 43: Hypotheses 15

Model Intellectual stimulation

Beta 0.578

R Square change 0.334

Sig. F change 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 5.4.16 H16

94

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.
Table 44: Hypotheses 16

Model Individualized consideration

Beta 0.746

R Square change 0.557

Sig. F change 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

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.
Table 45: Hypotheses 17

Model Individualized consideration

Beta 0.54 3

R Square change 0.295

Sig. F change 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

95

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).
Table 46: Hypotheses 18

Model Individualized consideration

Beta 0.48 9

R Square change 0.239

Sig. F change 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 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).
Table 47: Hypotheses 19

Model Individualized consideration

Beta 0.599

R Square change 0.359

Sig. F change 0.000

96

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 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).
Table 48: Hypotheses 20

Model Individualized consideration

Beta 0.679

R Square change 0.462

Sig. F change 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 5.4.21 H21 There is a significant relationship between managers age and Job-satisfaction A regression analysis was carried out to identify the relationship between managers 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).
Table 49: Hypotheses 21

97

Thus as the relationship between the two variables were significant hence the alternative hypothesis H1 was rejected and the null hypothesis H01 was accepted 5.4.22 H22 There is a significant relationship between managers Gender and Job-satisfaction A regression analysis was carried out to identify the relationship between managers 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).
Table 50: Hypotheses 22

Thus as the relationship between the two variables were significant hence the alternative hypothesis H1 was rejected and the null hypothesis H01 was accepted 5.4.23 H23 There is a significant relationship between managers educational level and Jobsatisfaction A regression analysis was carried out to identify the relationship between managers 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).
Table 51: Hypotheses 23

98

Thus as the relationship between the two variables were significant hence the alternative hypothesis H1 was rejected and the null hypothesis H01 was accepted

5.4.24 H24 There is a significant relationship between managers Experience level and Jobsatisfaction A regression analysis was carried out to identify the relationship between managers 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).
Table 52: Hypotheses 24

Thus as the relationship between the two variables were significant hence the alternative hypothesis H1 was rejected and the null hypothesis H01 was accepted 5.4.25 H25 There is a significant relationship between managers Income level and Jobsatisfaction A regression analysis was carried out to identify the relationship between managers 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).
Table 53: Hypotheses 25

99

Thus as the relationship between the two variables were significant hence the alternative hypothesis H1 was rejected and the null hypothesis H01 was accepted

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.
Table 54: Hypotheses 26

Model Individualized consideration

Beta 0.647

R Square change 0.418

Sig. F change 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 5.5 Summary of tested Hypotheses
Table 55: summary of tested Hypotheses

Hypothesis H1 There is a positive relationship 1. between Idealized influence and supervision 2. H2 There is a positive relationship between Idealized influence and salary H3 There is a positive relationship between Idealized influence and work condition

3.

Regression Analysis Under 95% confidence level there is a significance of p = 0.000 Therefore 1 = 2 Under 95% confidence level there is a significance of p = 0.000 Therefore 1 = 2 Under 95% confidence level there is a significance of p = 0.000 100

Decision Accept H1 There is a positive relationship between Idealized influence and supervision Accept H2 There is a positive relationship between Idealized influence and salary Accept H3 There is a positive relationship between Idealized influence and work condition

Therefore 1 = 2 4. H4 Under 95% confidence There is a positive relationship level there is a between Idealized influence significance of and career Achievements p = 0.000 Therefore 1 = 2 5. H5 Under 95% confidence Idealized influence correlates level there is a positively with over all jobsignificance of satisfaction of subordinates p = 0.000 Therefore 1 = 2 6. H6 Under 95% confidence There is a positive relationship level there is a between Inspirational significance of motivation and supervision. p = 0.000 Therefore 1 = 2 7. H7 Under 95% confidence There is a positive relationship level there is a between Inspirational significance of motivation and salary p = 0.005 Therefore 1 = 2 8. H8 Under 95% confidence There is a positive relationship level there is a between Inspirational significance of motivation and work condition p = 0.000 Therefore 1 = 2 9. H9 Under 95% confidence There is a positive relationship level there is a between Inspirational significance of motivation and career p = 0.000 Achievements Therefore 1 = 2 10. H10 Under 95% confidence There is a positive relationship level there is a between Inspirational significance of motivation and over all jobp = 0.000 satisfaction of subordinates Therefore 1 = 2 11. H11 Under 95% confidence There is a positive relationship level there is a between Intellectual stimulation significance of and supervision p = 0.000 Therefore 1 = 2 12. H12 Under 95% confidence There is a positive relationship level there is a between Intellectual stimulation significance of and salary p = 0.000 Therefore 1 = 2

Accept H4 There is a positive relationship between Idealized influence and career Achievements Accept H5 Idealized influence correlates positively with over all jobsatisfaction of subordinates Accept H6 There is a positive relationship between Inspirational motivation and supervision. Accept H7 There is a positive relationship between Inspirational motivation and salary Accept H8 There is a positive relationship between Inspirational motivation and work condition Accept H9 There is a positive relationship between Inspirational motivation and career Achievements Accept H10 There is a positive relationship between Inspirational motivation and over all jobsatisfaction of subordinates. Accept H11 There is a positive relationship between Intellectual stimulation and supervision Accept H12 There is a positive relationship between Intellectual stimulation and salary

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13. H13 There is a positive relationship between Intellectual stimulation and work condition

Under 95% confidence level there is a significance of p = 0.000 Therefore 1 = 2 14. H14 Under 95% confidence There is a positive relationship level there is a between Intellectual stimulation significance of and career Achievements. p = 0.000 Therefore 1 = 2 15. H15 Under 95% confidence There is a positive relationship level there is a between Intellectual stimulation significance of and over all job-satisfaction of p = 0.001 subordinates. Therefore 1 = 2 16. H16 Under 95% confidence There is a positive relationship level there is a between Individualized significance of consideration and supervision. . p = 0.000 Therefore 1 = 2 17. H17 Under 95% confidence There is a positive relationship level there is a between Individualized significance of consideration and salary p = 0.000 Therefore 1 = 2 18. H18 Under 95% confidence There is a positive relationship level there is a between Individualized significance of consideration and work p = 0.000 condition Therefore 1 = 2 19. H19 Under 95% confidence There is a positive relationship level there is a between Individualized significance of consideration and career p = 0.000 Achievements. Therefore 1 = 2 20. H20 Under 95% confidence There is a positive relationship level there is a between Individualized significance of consideration and over all jobp = 0.000 satisfaction of subordinates. Therefore 1 = 2 21. H21 There is a significant relationship between managers age and Job-satisfaction. Under 95% confidence level there is a significance of p = 0867 Therefore 1 = 2

Accept H13 There is a positive relationship between Intellectual stimulation and work condition Accept H14 There is a positive relationship between Intellectual stimulation and career Achievements. Accept H15 There is a positive relationship between Intellectual stimulation and over all job-satisfaction of subordinates. Accept H16 There is a positive relationship between Individualized consideration and supervision. Accept H17 There is a positive relationship between Individualized consideration and salary Accept H18 There is a positive relationship between Individualized consideration and work condition Accept H19 There is a positive relationship between Individualized consideration and career Achievements. Accept H20 There is a positive relationship between Individualized consideration and over all jobsatisfaction of subordinates. Rejected H21 There is a No relationship between managers age and Job-satisfaction.

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22. H22 There is a significant relationship between managers Gender and Job-satisfaction. 23. H23 There is a significant relationship between managers educational level and Jobsatisfaction. 24. H24 There is a significant relationship between managers income level and Jobsatisfaction. 25 H25 There is a significant relationship between managers experience level and Jobsatisfaction. 26 H26 There is a positive relationship between Transformational leadership style and Subordinates Job-satisfaction.

Under 95% confidence level there is a significance of p = 0.856 Therefore 1 = 2 Under 95% confidence level there is a significance of p = 0.965 Therefore 1 = 2 Under 95% confidence level there is a significance of p = 0.618 Therefore 1 = 2 Under 95% confidence level there is a significance of p = 0.320 Therefore 1 = 2 Under 95% confidence level there is a significance of p = 0.000 Therefore 1 = 2

Rejected H22 There is a No relationship between managers Gender and Job-satisfaction. Rejected H23 There is NO relationship between managers educational level and Job-satisfaction. Rejected H24 There is No relationship between managers income level and Job-satisfaction. Rejected H25 There is No relationship between managers experience level and Job-satisfaction. AcceptedH26 There 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)

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5.6.1 Hypotheses testing for Transformational Leadership styles and Supervision.

Table 56: Model summary for Leadership styles and Supervision.

Model Individualized consideration intellectual Stimulation

Beta 0.486 0.383

R Square change 0.603 0.603

Sig. F change 0.000 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 interrelationship 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

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Stimulation Beta values shows a positive correlation with supervision (Beta=0.486, Beta=0.338)
Table 58: Excluded for Leadership styles and Supervision

Excluded Variables Idealized Influence Inspirational Motivation

Beta -0.041 0.011

t -0.517 0.142

Sig. F change 0.605 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 Individualized consideration intellectual Stimulation

Beta 0.422 0.157

R Square change 0.305 0.305

Sig. F change 0.000 0.018

a. Predictors: (constant), Individualized consideration and Intellectual stimulation

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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. (0.305).
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 interrelationship 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 Idealized Influence Inspirational Motivation

Beta -0.014 0.031

t -0.132 0.305

Sig. F change 0.895 0761

a. Predictors in the Model: ( Constant), Individualized Consideration and Intellectual Stimulation b. Dependent Variable: Supervision

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According the multiple regression analysis carried out check the relationship between Leadership styles and salary. According to this model Idealized influence and Inspirational Motivation were rejected or showed no significant relationship and other two independent variables were accepted. Therefore the multiple regression analysis identified significant inter-relationship 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 Inspirational Motivation Idealized Influence Individualized consideration

Beta 1.113 -0.836 0.238

R Square change 0.357 0.357 0.357

Sig. F change 0.000 0.000 0.002

a. Predictors: (constant), Individualized consideration and Intellectual stimulation 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. (0.357).
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 interrelationship 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 Intellectual stimulation

Beta -0.079

t -0.874

Sig. F change 0.383

a. Predictors in the Model: ( Constant), Inspirational Motivation, Individualized Consideration and Intellectual Stimulation b. Dependent Variable: Working condition mean According the multiple regression analysis carried out check the relationship between 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.

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Therefore the multiple regression analysis identified significant inter-relationship 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

5.6.4 Hypotheses testing for Leadership styles and Career opportunities

Table 65: Model Summary for Leadership styles and career development

Model Individualized consideration

Beta 0.599

R Square change 0.359

Sig. F change 0.000

a. Predictors: (constant), Individualized consideration and Intellectual stimulation 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 (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. (0.357)
Table 66: coefficients for Leadership styles and career development
a Coe fficie nts

Model 1

(Constant) Individualized Consideration mean

Unstandardized Coefficients B Std. Error .746 .172 .745 .051

Standardized Coefficients Beta .599

t 4.324 14.698

Sig. .000 .000

a. Dependent Variable: Achievement mean

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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).
Table 67: Excluded variables for Leadership styles and career development

Excluded Variables Idealized Influence Inspirational Motivation Intellectual stimulation

Beta -0.078 0.140 0.048

t -1.088 1.842 0.752

Sig. F change 0.277 0.066 0.453

a. Predictors in the Model: ( Constant), Individualized Consideration b. Dependent Variable: Career Achievements mean According the multiple regression analysis carried out check the relationship between 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.

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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)

Table 68: Model summary for Leadership styles and overall Job-satisfaction

Model Individualized consideration Inspirational motivation Idealized Influence

Beta 0.599 0.677 -0.474

R Square change 0.498 0.498 0.498

Sig. F change 0.000 0.000 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

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a Coe fficie nts

Model 3

(Constant) Individualized Consideration mean Inspirational Motivation Idealized influence mean

Unstandardized Coefficients B Std. Error .779 .138 .543 .695 -.514 .074 .119 .119

Standardized Coefficients Beta .498 .677 -.474

t 5.642 7.358 5.832 -4.311

Sig. .000 .000 .000 .000

a. Dependent Variable: overall Jobsatisfaction

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 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 Intellectual stimulation

Beta In 0.144

t 1.823

Sig. F change 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 Jobsatisfaction. Therefore the multiple regression analysis identified significant inter-relationship 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

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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 managers demographic variables such as age, gender, educational level, 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 Job113

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 (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.

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6.4 Inspirational motivation Similar to Idealized Influence, Inspirational motivation leadership styles showed significant relationship with the subordinates Job-satisfaction sub-scale and total Jobsatisfaction. 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. 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

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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 Jobsatisfaction such as supervision, salary, and work condition and career opportunities found out supervision and salary had a positive relationship with Intellectual Stimulation. 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 Jobsatisfaction 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

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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 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 metaanalysis 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

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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, DunhamTaylor, 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.

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 academics satisfaction or dissatisfaction with the behaviours of their managers In this study age showed no significant relationship with any of the Job-satisfaction subscale or total Job-satisfaction. This finding is on contrast to by Kakabadse et al. (1998) 118

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 Kwons (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 subordinates jobsatisfaction 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.

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 Jobsatisfaction The study shows that transformational leadership styles that are perceived as of a Jobsatisfaction 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.

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From this study, it appears that demographic variables of managers personal factors do not have a statistically significant role in the subordinates 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.

6.9 Competitive Comparison Private and Public banks

Bar Chart
120

Idealized influence mean

Not at all Once in a while Sometimes Fairly often Frequenntly

100

80

Count

60

40

20

0 Private Bank Public Bank

Bank type
Figure 22: Idealized Influence competitive comparison

120

Bar Chart
125

Inspirational Motivation
Not at all Once in a while Sometimes Fairly often

100

Count

75

Frequenntly

50

25

0 Private Bank Public Bank

Bank type

Figure 23: Inspirational Motivation competitive comparison

Bar Chart
120

Intellectual Stimulation mean

Not at all Once in a while Sometimes Fairly often Frequenntly

100

80

Count

60

40

20

0 Private Bank Public Bank

Bank type
Figure 24: Intellectual Stimulation competitive comparison

121

Bar Chart
120

100

Individualized Consideration mean

Not at all Once in a while Sometimes Fairly often Frequenntly

80

Count

60

40

20

0 Private Bank Public Bank

Bank type
Figure 25: Individualized consideration competitive comparison

Bar Chart
120

overall Jobsatisfaction
Strongly Disagree Disagree Neither agree Nor Disagree Agree Strongly Agree

100

80

Count

60

40

20

0 Private Bank Public Bank

Bank type

122

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 Private 43% Public 38% Source: Questionnaires analysis

Fairly often 45% 40%

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 Individualized consideration are most commonly used by mangers and Intellectual Stimulation is not much used by them but it is used by some managers.

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6.10 Summary of Chapter 6 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 also confirmed that managers leadership styles have a positive relationship with over all Job Satisfaction. Thus Managers should look into leadership matters of the banks through

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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 managers 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 Jobsatisfaction. 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 subordinates 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 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 125

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 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 126

each and every individuals need and further based on these finding they should design the jobs to subordinates in order to make maximum utilization of the employees 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 Jobsatisfaction and Transformational Leadership styles seemed to have a highly significant correlation between them. And Transformational leadership styles include the four Is 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. As a result Managers should maintain a good level of motivation towards the employees.

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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.

7.7 Summary of Chapter 7

This chapter provides recommendations on how to improve the Leadership styles in the banking industry.

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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 managers demographic variables such as age, gender, educational level, experience and income and subordinates job-satisfaction did not show any significant relationship between each other.

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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 industrys 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 Jobsatisfaction was measured according to supervision, salary, and work condition and career opportunities.

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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 managers with the selected dependent variables of Jobsatisfaction 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.

8.2 Further Research

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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 Jobperformance, commitment and Job stress. And use several actual financial aspects of the organizations performance instead measuring through the views of the employees 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

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CHAPTER 9
9.0 References and Bibliography
9.1 References

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9.2 Bibliography Bass, B.M. (1997). Does the Transactional / Transformational Leadership Paradigm Transcend Organizational and National Boundaries? American Psychologist, 52, 130Goodell, T., & Coeling, H. (1994). Outcomes of nurses job satisfaction. Journal of Nursing Administration, 24 (11), 36-41139. Mahoney, T. A., Jerdee, T. H., & Carroll, S. J., Jr. (1965). The jobs of management. Industrial Relations, 4, 97-110.

143

Martin, C. L., Bennett, N. (1996, March). The role of justice judgments in explaining the relationship between job satisfaction and organizational commitment. Group & Organization Management, 21, 84-104. Philip Kotler. 2000, Marketing Management, 10th edn, Prentice Hall, New Delhi. Thomas J. Peters, Nancy K. Austin. 2003, A Passion For Excellence: The Leadership Difference, Profile Books Ltd., London. William H. Gates,. 1999, Business at the Speed of Thought: Succeeding In The Digital Economy, Warner Books, Inc., New York.

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.

144

I would greatly appreciate your participation in this research. Anonymity of personal information provided would be withheld. Thank you for your Cooperation. 1. What is your gender?
Gender Male Female ( )

2. What is your age?

Age 25 or under. 26 - 40 41 - 55 56 or older ( )

3. Educational Level
Education level. O/L A/L ( )

4. Income Level
Income level ( )

Undergraduate Graduate Post Graduate Professional 5. Experience in the industry or in Banking

Experience level. ( )

Below 15000 15001-25000 25001-35000 35001-45000 45001-55000 55001 & above 6. Designation
Designation level. Trainee Banking Assistant Executive (Snr/Jnr) Manager Regional Manager Other ( )

Less than 2 years Between 2-5 years Between 5-10 years Between 10 to 15 years Between 15- 25 years More than 25 years

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 ( 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
)

in

145

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34

Talks to us about his/her most important values and beliefs The manager sets high standards of work Treats me as an individual rather than just a member of a group Emphasizes the importance of being committed to our beliefs and norms. The manager envisions exciting new possibilities in work Re-examines critical assumptions to question whether they are appropriate and relevant. Listens carefully to my concerns and ideas Specifies the importance of having a strong sense of purpose in work Talks optimistically about the future Encourages us to rethink ideas which had never been questioned Provides useful advice for my development and career Considers the moral and ethical consequences of his/her actions Express his/her confidence that we will achieve our goals Questions the traditional ways of doing things Focuses me on developing my strengths The manager displays conviction in his/her ideals, beliefs, and standards Provides continuous encouragement Seeks differing perspectives when solving problems Spends time teaching and coaching me Takes a stand on difficult issues Focuses my attention on what it takes to be successful Suggests new ways of looking at how we do our jobs Treats each of us as individuals with different needs, abilities and aspirations Clarifies the central purpose underlying our actions Talks enthusiastically about what needs to be accomplished Encourages me to express met to ideas and opinions Teach me how to identify the needs and capabilities Talks about how trusting each other can help us to overcome our difficulties and achieve our goals Makes aware of essential work related issues Emphasizes the importance of having a collective sense of mission Articulates a compelling vision of the future Gets me to look at problems from different angles and perspectives Promotes self-development Behaves in ways that are consistent with his/her expressed values and beliefs

146

35 36 37 38

Shows determination to accomplish what he/she sets out to do Encourages non-traditional thinking to deal with traditional problems Gives personal attention to members who seem neglected 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 1- Strongly Disagree, 2- Disagree, 3- Neither agree Nor Disagree, 4- Agree, 5Strongly Agree Supervision Does the manager of the organization have leadership skills Do they treat individuals fairly Do you feel that you can trust your managers Do the managers of organization give positive feedback to employees Does the organization have a consistent, timely and fair method for evaluating individual performance of employees Salary 1 2 3
Are the amount of pay received, the perceived equity of the pay and the method of payment adequate? Are the benefits of the organization similar to what other offices in your area offer Does the organization have clear policies related to salaries,

1 2 3 4 5

147

increments and bonuses

1 2 3 4 5 6

Working Condition and Work itself Are the equipment of the organization (everything from computers to scales) in proper conditions Are the organizations facility up to date Are office conditions comfortable Do employees have adequate space Do you perceive that the work you do is meaningful Do your managers communicate their appreciation of your work to the organization

1 2 3 4 5 6 7 8 9

Achievement and Career development 1 Do you have clear, achievable goals and standards for your position Do you receive regular, timely feedback on how you are performing Are your talents being utilized for the fullest by your manager Are you adequately challenged in your work Are you being rewarded for your loyalty Are you being rewarded based on your performance Does your manager promote from within, when organization appropriate Does your manager support continuing education and personal growth Does the organization have a consistent, timely and fair method for evaluating individual performance of employees

4 5

THANKYOU FOR YOUR CO-OPERATION

148

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. I would greatly appreciate your participation in this research. Anonymity of personal information provided would be withheld. Thank you for your Cooperation. 1. What is your gender?
Gender Male Female ( )

2. What is your age?

Age 25 -35 35 45 45 - 55 56 or older ( )

3. Educational Level
Education level. O/L A/L ( )

4. Income Level
Income level ( )

Undergraduate Graduate Post Graduate Professional 5. Experience in the industry or in Banking

Experience level. ( )

25001-35000 35001-45000 45001-55000 55001 & above

Between 2-5 years Between 5-10 years Between 10 to 15 years Between 15- 25 years More than 25 years

149

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.

150

Appendixes Correlations Found between Leadership Behaviors & Organizational Commitment for All Valid Participating Organizations Subordinates Job-satisfaction R R Square 0.223 0.129 0.156 0.143 0.114 0.142 0.213 0.126 0.088 0.080 0.126 Sig.

Transformational Leadership Charisma (Attributed) Idealized Influence (Behavior) Inspirational Motivation Intellectual Stimulation Individual Consideration Transactional Leadership Contingent Reward Management by Exception (Active) Management by Exception (Passive) Laissez-faire

0.472 0.359 0.395 0.378 0.338 0.377 0.461 0.355 0.296 0.284 0.354

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 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

151

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 its fully adequate in scope and quality as a thesis for the degree of BA (Hons) in Business Administration

Mrs. Kanchanie Jayawardena

152

APPENDIX D Reliability Analysis

Idealized Influence
Re liability Statistics Cronbach's Alpha Based on Standardized Items .911

Cronbach's Alpha .912

N of Items 10

Item Statistics Idealized Idealized Idealized Idealized Idealized Idealized Idealized Idealized Idealized Idealized Influence Influence Influence Influence Influence Influence Influence Influence Influence Influence Mean 3.19 3.43 3.60 3.21 3.24 3.38 2.95 3.39 3.40 3.02 Std. Deviation 1.093 1.115 1.108 .947 1.147 1.108 1.119 1.128 1.070 1.086 N 388 388 388 388 388 388 388 388 388 388

Ite m-Total Statistics Scale Mean if Item Deleted 29.62 29.37 29.21 29.59 29.57 29.43 29.86 29.42 29.41 29.78 Scale Variance if Item Deleted 56.179 54.276 53.545 56.831 54.815 52.158 53.150 52.466 53.808 57.328 Corrected Item-Total Correlation .561 .673 .728 .619 .615 .824 .746 .786 .741 .490 Squared Multiple Correlation .473 .617 .667 .529 .581 .745 .634 .708 .639 .465 Cronbach's Alpha if Item Deleted .910 .903 .900 .906 .907 .894 .898 .896 .899 .914

Idealized Idealized Idealized Idealized Idealized Idealized Idealized Idealized Idealized Idealized

Influence Influence Influence Influence Influence Influence Influence Influence Influence Influence

153

Scale Statistics Mean 32.81 Variance 66.575 Std. Deviation 8.159 N of Items 10

Inspirational Motivation
Re liability Statistics Cronbach's Alpha Based on Standardized Items .922

Cronbach's Alpha .920

N of Items 10

Item Statistics Inspirational Inspirational Inspirational Inspirational Inspirational Inspirational Inspirational Inspirational Inspirational Inspirational Motivation Motivation Motivation Motivation Motivation Motivation Motivation Motivation Motivation Motivation Mean 3.47 3.28 3.37 3.77 3.79 3.23 3.25 3.42 3.02 3.32 Std. Deviation 1.077 1.222 1.203 1.194 1.266 1.096 1.123 1.100 .912 1.069 N 388 388 388 388 388 388 388 388 388 388

Ite m-Total Statistics Scale Mean if Item Deleted 30.43 30.62 30.53 30.13 30.11 30.67 30.65 30.48 30.88 30.58 Scale Variance if Item Deleted 60.928 60.680 60.224 60.509 58.104 61.540 61.111 60.302 63.209 60.756 Corrected Item-Total Correlation .728 .638 .678 .667 .757 .673 .680 .750 .709 .745 Squared Multiple Correlation .662 .586 .518 .634 .663 .587 .674 .647 .593 .726 Cronbach's Alpha if Item Deleted .910 .916 .913 .914 .909 .913 .913 .909 .912 .910

Inspirational Motivation Inspirational Motivation Inspirational Motivation Inspirational Motivation Inspirational Motivation Inspirational Motivation Inspirational Motivation Inspirational Motivation Inspirational Motivation Inspirational Motivation

154

Scale Statistics Mean 33.90 Variance 74.323 Std. Deviation 8.621 N of Items 10

Intellectual Stimulation
Re liability Statistics Cronbach's Alpha Based on Standardized Items .894

Cronbach's Alpha .894

N of Items 9

Ite m Statistics Intellectual Stimulation Intellectual Stimulation Intellectual Stimulation Intellectual Stimulation Intellectual Stimulation Intellectual Stimulation Intellectual Stimulation Intellectual Stimulation Intellectual Stimulation Mean 3.28 3.37 2.98 3.31 3.37 3.38 3.27 2.78 3.43 Std. Deviation 1.133 1.132 1.146 1.239 1.119 1.145 1.150 1.129 1.228 N 388 388 388 388 388 388 388 388 388

Ite m-Total Statistics Scale Mean if Item Deleted 25.89 25.80 26.19 25.86 25.80 25.79 25.90 26.39 25.74 Scale Variance if Item Deleted 47.613 48.625 48.823 44.919 45.901 46.515 46.552 47.257 47.388 Corrected Item-Total Correlation .633 .562 .540 .742 .768 .701 .696 .661 .585 Squared Multiple Correlation .456 .527 .385 .666 .671 .634 .653 .569 .446 Cronbach's Alpha if Item Deleted .884 .889 .891 .875 .873 .878 .879 .882 .888

Intellectual Stimulation Intellectual Stimulation Intellectual Stimulation Intellectual Stimulation Intellectual Stimulation Intellectual Stimulation Intellectual Stimulation Intellectual Stimulation Intellectual Stimulation

155

Scale Statistics Mean 29.17 Variance 58.788 Std. Deviation 7.667 N of Items 9

Individualized consideration
Reliability Statistics Cronbach's Alpha Based on Standardized Item s .867

Cronbach's Alpha .863

Nof Item s 9

ItemS tis s ta tic Ma en I d id a e n iv u liz d C n id ra n o s e tio I d id a e n iv u liz d C n id ra n o s e tio I d id a e n iv u liz d C n id ra n o s e tio I d id a e n iv u liz d C n id ra n o s e tio I d id a e n iv u liz d C n id ra n o s e tio I d id a e n iv u liz d C n id ra n o s e tio I d id a e n iv u liz d C n id ra n o s e tio I d id a e n iv u liz d C n id ra n o s e tio I d id a e n iv u liz d C n id ra n o s e tio 3 4 .1 3 7 .7 3 2 .3 3 6 .1 3 8 .1 3 1 .2 3 0 .1 3 0 .3 3 4 .5 S . D v tio td e ia n 1 7 .2 2 1 5 .2 3 1 4 .2 8 1 1 .0 8 1 0 .2 2 1 8 .0 0 1 5 .0 3 1 6 .1 2 1 5 .2 6 N 38 8 38 8 38 8 38 8 38 8 38 8 38 8 38 8 38 8

156

Item-Total Statistics Scale Mean if Item Deleted Individualized Consideration Individualized Consideration Individualized Consideration Individualized Consideration Individualized Consideration Individualized Consideration Individualized Consideration Individualized Consideration Individualized Consideration 26.59 25.96 26.40 26.56 26.54 26.51 26.62 26.42 26.19 Scale Variance if Item Deleted 48.207 40.450 40.571 44.046 41.918 43.021 42.794 43.670 41.371 Corrected Item-Total Correlation .201 .712 .707 .613 .644 .649 .688 .544 .645 Squared Multiple Correlation .204 .650 .665 .484 .612 .465 .615 .369 .607 Cronbach's Alpha if Item Deleted .887 .836 .837 .847 .843 .844 .841 .853 .843

Supervision
Re liability Statistics Cronbach's Alpha Based on Standardized Items .913

Cronbach's Alpha .912

N of Items 5

Ite m Statistics Supervision Supervision Supervision Supervision Supervision Mean 3.96 3.65 3.86 3.68 3.35 Std. Deviation 1.237 1.069 1.187 1.151 1.241 N 388 388 388 388 388

157

Ite m-Total Statistics Scale Mean if Item Deleted 14.53 14.85 14.64 14.81 15.15 Scale Variance if Item Deleted 15.831 17.907 16.444 16.684 17.237 Corrected Item-Total Correlation .849 .737 .817 .820 .674 Squared Multiple Correlation .744 .593 .700 .701 .499 Cronbach's Alpha if Item Deleted .877 .901 .884 .884 .915

Supervision Supervision Supervision Supervision Supervision

Scale Statistics Mean 18.49 Variance 25.718 Std. Deviation 5.071 N of Items 5

Salary and Pay

Re liability Statistics Cronbach's Alpha Based on Standardized Items .728

Cronbach's Alpha .725

N of Items 3

Ite m Statistics Salary Salary Salary Mean 2.71 2.68 2.86 Std. Deviation 1.090 1.132 1.205 N 388 388 388

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Inter-Item Correlation M atrix Salary Salary Salary Salary 1.000 .545 .495 Salary .545 1.000 .376 Salary .495 .376 1.000

The covariance matrix is calculated and used in the analysis.

Ite m-Total Statistics Scale Mean if Item Deleted 5.54 5.56 5.39 Scale Variance if Item Deleted 3.758 3.942 3.815 Corrected Item-Total Correlation .626 .527 .494 Squared Multiple Correlation .395 .311 .261 Cronbach's Alpha if Item Deleted .545 .660 .705

Salary Salary Salary

Working conditions
Re liability Statistics Cronbach's Alpha Based on Standardized Items .944

Cronbach's Alpha .943

N of Items 6

159

Ite m Statistics Mean Working Condition and Work itself Working Condition and Work itself Working Condition and Work itself Working Condition and Work itself Working Condition and Work itself Working Condition and Work itself 3.08 3.07 3.43 2.99 3.31 3.09 Std. Deviation 1.169 1.130 1.145 1.177 1.332 1.225 N 388 388 388 388 388 388

Ite m-Total Statistics Scale Mean if Item Deleted Working Condition and Work itself Working Condition and Work itself Working Condition and Work itself Working Condition and Work itself Working Condition and Work itself Working Condition and Work itself 15.89 15.90 15.54 15.97 15.66 15.88 Scale Variance if Item Deleted 28.623 28.990 28.234 28.581 26.991 28.112 Corrected Item-Total Correlation .819 .819 .878 .816 .828 .817 Squared Multiple Correlation .714 .754 .833 .699 .743 .685 Cronbach's Alpha if Item Deleted .933 .934 .927 .934 .933 .934

Scale Statistics Mean 18.97 Variance 40.229 Std. Deviation 6.343 N of Items 6

Career Development
Reliability Statistics Cronbach's Alpha Based on Standardized Item s .937

Cronbach's Alpha .936

N of Item s 9

160

Ite S tis s m ta tic Ma en A h v mn a d c ie e e t n C re r D v lo m n a e ee p e t A h v mn a d c ie e e t n C re r D v lo m n a e ee p e t A h v mn a d c ie e e t n C re r D v lo m n a e ee p e t A h v mn a d c ie e e t n C re r D v lo m n a e ee p e t A h v mn a d c ie e e t n C re r D v lo m n a e ee p e t A h v mn a d c ie e e t n C re r D v lo m n a e ee p e t A h v mn a d c ie e e t n C re r D v lo m n a e ee p e t A h v mn a d c ie e e t n C re r D v lo m n a e ee p e t A h v mn a d c ie e e t n C re r D v lo m n a e ee p e t 3 6 .4 3 1 .0 3 0 .0 3 8 .3 3 8 .0 3 4 .1 3 3 .3 3 4 .4 3 2 .0 S . D v tio td e ia n 1 6 .2 8 1 9 .0 0 1 8 .0 2 1 5 .2 5 1 9 .3 2 1 1 .3 6 1 3 .1 2 1 7 .2 7 1 3 .3 2 N 38 8 38 8 38 8 38 8 38 8 38 8 38 8 38 8 38 8

Item -Total Statistics Scale M ean if Item Deleted Achievem ent and Career Developm ent Achievem ent and Career Developm ent Achievem ent and Career Developm ent Achievem ent and Career Developm ent Achievem ent and Career Developm ent Achievem ent and Career Developm ent Achievem ent and Career Developm ent Achievem ent and Career Developm ent Achievem ent and Career Developm ent 25.40 25.86 25.87 25.48 25.78 25.72 25.53 25.43 25.84 Scale Variance if Item Deleted 67.187 68.551 68.003 64.648 63.427 65.293 66.224 63.553 65.421 Corrected Item -Total Correlation .665 .714 .754 .813 .779 .734 .821 .857 .716 Squared M ultiple Correlation .751 .758 .733 .798 .727 .765 .825 .796 .761 Cronbach's Alpha if Item Deleted .934 .931 .929 .925 .927 .930 .925 .922 .931

Scale Statistics Mean 28.86 Variance 82.630 Std. Deviation 9.090 N of Items 9

Regression Analysis

161

Table 37: Hypothesis 1

Table 48:Hypothesis 2

162

Table 59:Hypothesis 3

Table 60: Hypothesis 4

163

Table 60: Hypothesis 5

Table 61:Hypothesis 6

164

Table 62: Hypothesis 7

Table 63: Hypothesis 8

165

Table 64: Hypothesis 9

Table 65: Hypothesis 10

166

Table 66: Hypothesis 11

167

Table 67: Hypothesis 12

Table 68: Hypothesis 13

168

Table 69: Hypothesis 14

Table 70: Hypothesis 15

169

Table 71: Hypothesis 13

Table 72: Hypothesis 17

170

Table 73: Hypothesis 14

Table 74: Hypothesis 19

171

Table 75: Hypothesis 20

ANOVA overall Jobsatisfaction Sum of Squares .224 302.549 302.773 df 2 385 387 Mean Square .112 .786 F .143 Sig. .867

Between Groups Within Groups Total

Table 76: Hypothesis 21

ANOVA overall Jobsatisfaction Sum of Squares 1.048 301.725 302.773 df 4 383 387 Mean Square .262 .788 F .333 Sig. .856

Between Groups Within Groups Total

Table 77: Hypothesis 22

ANOVA overall Jobsatisfaction Sum of Squares .056 302.717 302.773 df 2 385 387 Mean Square .028 .786 F .036 Sig. .965

Between Groups Within Groups Total

Table 78: Hypothesis 23

ANOVA overall Jobsatisfaction Sum of Squares 4.751 298.022 302.773 df 5 382 387 Mean Square .950 .780 F 1.218 Sig. .300

Between Groups Within Groups Total

172

Table 79: Hypothesis 24

ANOVA overall Jobsatisfaction Sum of Squares 3.683 299.090 302.773 df 4 383 387 Mean Square .921 .781 F 1.179 Sig. .320

Between Groups Within Groups Total

Table 80: Hypothesis 25

173

Multiple Linear Regression analysis

Table 81: Multiple Regression 1

Table 82: Multiple Regressions 2

174

Table 83: Multiple Regression 3

175