Theoretical and Applied Economics
No. 6 / 2010 (547)
Transformational and Transactional Leadership Styles as a Predictor of Individual Outcomes
Mohd Hamran MOHAMAD
Hassan Al-Banna MOHAMED
Nurhana Mohamad RAFIUDDIN
Karen Woon Pei ZHEN
Universiti Pertahanan Nasional, Malaysia
Abstract. This study was conducted to measure the relationship between transformational and transactional leadership styles and individual outcomes (i.e., perceptions of justice and trust in the leaders) using 118 usable questionnaires gathered from employees who have worked in a US subsidiary firm in East Malaysia, Malaysia. The results of exploratory analysis confirmed that the measurement scales used in this study met the acceptable standards of validity and reliability analyses. Further, the outcomes of Pearson correlation analysis showed six important findings: first, transformational leadership significantly correlated with procedural justice. Second, transactional leadership significantly correlated with distributive justice. Third, transformational leadership significantly correlated with trust in the leaders. Fourth, transactional leadership significantly correlated with trust in the leaders. Statistically, this result confirms that transformational leadership is an important predictor of procedural justice, transactional is an important predictor of distributive justice, and both leadership styles are important predictors of trust in the leaders. In addition, implications and discussion are elaborated.
Contents
The Tandem Culture – Organizational Bureaucracy in Public Sector
Localization Factors and Inward Foreign Direct Investment in Greece
Knowledge Management – the Key Resource in the Knowledge Economy
Accounting System in Croatian Public Healthcare Organizations: an Empirical Analysis
Keynesian Substantiation of the Marketing Policies in Local Development
Marketing Research on Tourist Consumer Opinions and Behavior in the Center Development Region
Transformational and Transactional Leadership Styles as a Predictor of Individual Outcomes
Study on the Local Financial Self-government in Romania