The Impact Of Transformational Leadership On Job Satisfaction And Self-Perceived Performance Of Banking Employees: The Case Of Jordan

Abstract

This study tested the transformational leadership theory among managers at functional level in Jordanian banks. It examined the effects of both transformational and transactional leadership styles of bank mangers/supervisors on employees’ satisfaction and self-perceived performance. Self-efficacy, self-esteem and leadership disposition (Romance of Leadership) of employees were hypothesized to act as moderators. Data was collected from employees working in Jordanian banks. A multiple regression analysis indicated that transformational leadership style, transactional leadership style, and self-efficacy were all related to job satisfaction. On the other hand, self-efficacy, Romance of Leadership (RLS), and self-esteem were related to self-perceived performance. Furthermore, a MANCOVA analysis indicated significant effects of self-efficacy, RLS, and self-esteem as covariates. Results showed that to elicit higher levels of satisfaction among bank employees, managers/supervisors need to demonstrate transformational and transactional attributes at the same time.