The effect of Transformational Leadership and Transactional Leadership on Work Engagement The mediating effect of Psychological Capital
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Feb 28, 2012
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Abstract
This study was conducted to identify the effects of transformational leadership and transactional leadership on work engagement in a sample of 156 employees from major company. The present study also attempted to find out the mediating effect of psychological capital on the relationship and to investigate transformational leadership's augmentation effect on psychological capital and work engagement. The results showed that both transformational leadership and transactional leadership elevated levels of work engagement and these effects were found to be partially mediated by psychological capital. This implies that it is crucial that the role of leader who motivates employees to perceive high level of their psychological resources to create above the average performance or beyond performance expectation. Also difference test for mediating effect of psychological capital, which is a research question in this study, revealed that psychological capital had been relatively strong mediating effect on the relationship between transformational leadership and work engagement. This indicates that transformational leadership's augmentation effect on job satisfaction, organizational commitment, job performance in previous research was also found in psychological capital and work engagement. Finally, Implications and limitations of these results are discussed.
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Lee, C., Shin, K., & Heo, C. (2012). The effect of Transformational Leadership and Transactional Leadership on Work Engagement: The mediating effect of Psychological Capital. Korean Journal of Industrial and Organizational Psychology, 25(1), 147–169. https://doi.org/10.24230/kjiop.v25i1.147-169
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Empirical Articles
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References
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백승근, 신강현, 김완석, 유지훈, 한영석. (2010). 조직의 정서표현규칙이 종업원의 직무태도에 미치는 영향: 정서노동 전략의 매개효과를 중심으로. 한국심리학회지 산업 및 조직, 23, 27-51.
백승근, 신강현, 허창구. (2011). 서비스직 종업원의 정서노동 과정에서 정서지능의 매개된 조절효과 검증: 스트레스 교류모형과 직무요구-자원 모형을 중심으로. 한국심리학회지 산업 및 조직, 24, 429-454.
홍세희. (2000). 특별기고: 구조 방정식 모형의 적합도 지수 선정기준과 그 근거. 한국심리학회지 임상, 19, 161-177.
Albrecht, S. L. (2010). Handbook of Employee Engagement: Perspectives, Issues, Research and Practice. Glos, England: Edward Elgar Publishing.
Allen, J. S., Bycio, P., & Hackett, R. D. (1995). Further assessments of Bass's (1985) conceptualization of transactional and transformational leadership. Journal of Applied Psychology, 80, 468-478.
Avey, J. B., Luthans, F., & Jensen, S. M. (2009). Psychological capital: A positive resource for combating employee stress and turnover. Human Resource Management, 48, 677-693.
Avey, J. B., Luthans, F., & Mhatre, K. H. (2008). A call for longitudinal research in positive organizational behavior. Journal of Organizational Behavior, 29, 705-711.
Avolio, B. J. (1999). Full leadership development: Building the vital forces in organizations: Sage Publications, Inc.
Avolio, B. J., Bass, B. M., & Jung, D. I. (1999). Re-examining the components of transformational and transactional leadership using the multifactor leadership questionnaire. Journal of Occupational and Organizational Psychology, 72, 441-462.
Bakker, A. B., & Demerouti, E. (2007). The job demands-resources model: state of the art. Journal of Managerial Psychology, 22, 309-328.
Bakker, A. B., Hakanen, J. J., Demerouti, E., & Xanthopoulou, D. (2007). Job resources boost work engagement, particularly when job demands are high. Journal of Educational Psychology, 99, 274-284.
Bandura, A. (1997). Self-efficacy: The exercise of control. New York: W. H. Freeman & Company.
Bandura, A. (2000). Cultivate self-efficacy for personal and organizational effectiveness. In E. A. Locke (Ed.), The Blackwell Handbook of Principles of Organizational Behavior (pp.120- 136). Oxford, UK: Blackwell.
Bass, B., & Avolio, B. (2004). MLQ A Manual and Sampler Set: Revised third edition. Mind Garden: Menlo Park, CA. Available at web site. http://www.mindgarden.com/products/mlqr. htm.
Bass, B. M. (1985). Leadership and performance beyond expectations. New York: Free Press.
Bass, B. M. (1990). Handbook of leadership (3rd ed.). New York: Free Press.
Bass, B. M. (1998). Transformational leadership: Industrial, military, and educational impact. London: Lawrence Erlbaum.
Bass, B. M., & Avolio, B. J. (1997). Transformational Leadership Development: Manual for the Multifactor Leadership Questionnaire: CA, Mind Garden.
Bass, B. M., Avolio, B. J., Jung, D. I., & Berson, Y. (2003). Predicting unit performance by assessing transformational and transactional leadership. Journal of applied psychology, 88, 207-218.
Bollen, K. A., & Stine, R. A. (1992). Bootstrapping goodness-of-fit measures in structural equation models. Sociological Methods & Research, 21, 205-229.
Browne, M., & Cudeck, R. (1993). Alternative ways of assessing model fit. Testing structural equation models (1993) Bollen, Kenneth A.; Long, J. Scott. Newbury Park: Sage Publications.
Burns, J. M. (1978). Leadership. New York: Haprper & Row.
Christian, M. S., Garza, A. S., & Slaughter, J. E. (2011). Work engagement: A quantitative review and test of its relations with task and contextual performance. Personnel Psychology, 64, 89-136.
Colquitt, J. A., Conlon, D. E., Wesson, M. J., Porter, C. O. L. H., & Ng, K. Y. (2001). Justice at the millennium: A meta-analytic review of 25 years of organizational justice research. Journal of applied psychology, 86, 425- 445.
Deluga, R. J. (1988). Relationship of transformational and transactional leadership with employee influencing strategies. Group & Organization Management, 13, 456-467.
Evans, M. G. (1974). Extensions of a path-goal theory of motivation. Journal of Applied Psychology, 59, 172-178.
Gooty, J., Gavin, M., Frazier, L. M., & Snow, B. D. (2009). In the eyes of the beholder: Transformational leadership, positive psychological capital, and performance. Journal of Leadership and Organizational Studies, 15, 353-367.
Greene, C. N., & Podsakoff, P. M. (1981). Effects of withdrawal of a performance-contingent reward on supervisory influence and power. Academy of Management Journal, 24, 527-542.
Harter, J. K., Schmidt, F. L., & Hayes, T. L. (2002). Business-unit-level relationship between employee satisfaction, employee engagement, and business outcomes: A meta-analysis. Journal of Applied Psychology, 87, 268-279.
Hater, J. J., & Bass, B. M. (1988). Superiors' evaluations and subordinates' perceptions of transformational and transactional leadership. Journal of Applied Psychology, 73, 695-702.
Hobfoll, S. E. (2002). Social and psychological resources and adaptation. Review of General Psychology, 6, 307-324.
Hobfoll, S. E., Johnson, R. J., Ennis, N., & Jackson, A. P. (2003). Resource loss, resource gain, and emotional outcomes among inner city women. Journal of Personality and Social Psychology, 84, 632-643.
House, R. J. (1971). A path goal theory of leader effectiveness. Administrative science quarterly, 321-339.
Judge, T. A., & Bono, J. E. (2001). Relationship of core self-evaluations traits - Self-esteem, generalized self-efficacy, locus of control, and emotional stability - With job satisfaction and job performance: A meta-analysis. Journal of Applied Psychology, 86, 80-92.
Judge, T. A., Van Vianen, A. E. M., & De Pater, I. E. (2004). Emotional stability, core self-evaluations, and job outcomes: A review of the evidence and an agenda for future research. Human Performance, 17, 325-346.
Kahn, R. L., & Byosiere, P. (1992). Stress in organizations. In M. D. Dunette, J. M. R. Hough, & H. C. Triandis (Eds.). Handbook of industrial and organizational psychology, (Vol. 4: pp.571-650). Palo Alto, CA: Consulting Psychologists Press.
Kahn, W. A. (1990). Psychological conditions of personal engagement and disengagement at work. Academy of Management Journal, 33, 692- 724.
Kark, R., & Shamir, B. (2002). The dual effect of transformational leadership: Priming relational and collective selves and further effects on followers. Transformational and Charismatic Leadership: The Road Ahead, 2, 67-91.
Lau, R. S., & Cheung, G. W. (2010). Estimating and comparing specific mediation effects in complex latent variable models. Organizational Research Methods.
Law, K. S., Wong, C. S., & Mobley, W. H. (1998). Toward a taxonomy of multidimensional constructs. Academy of Management Review, 23(4), 741-755.
Lowe, K. B., Kroeck, K. G., & Sivasubramaniam, N. (1996). Effectiveness correlates of transformational and transactional leadership: A meta-analytic review of the mlq literature. Leadership Quarterly, 7, 385-425.
Luthans, F. (2002a). The need for and meaning of positive organizational behavior. Journal of Organizational Behavior, 23, 695-706.
Luthans, F. (2002b). Positive organizational behavior: Developing and managing psychological strengths. Academy of Management Executive, 16, 57-72.
Luthans, F., Avolio, B. J., Avey, J. B., & Norman, S. M. (2007). Positive psychological capital: Measurement and relationship with performance and satisfaction. Personnel Psychology, 60, 541- 572.
Luthans, F., & Youssef, C. M. (2004). Human, social, and now positive psychological capital management: Investing in people for competitive advantage. Organizational Dynamics, 33, 143-160.
Luthans, F., & Youssef, C. M. (2007). Emerging positive organizational behavior. Journal of Management, 33, 321-349.
Luthans, F., Youssef, C. M., & Avolio, B. J. (2007). Psychological capital: Developing the human competitive edge. New York, US: Oxford University Press.
Maslach, C., Schaufeli, W. B., & Leiter, M. P. (2001). Job burnout. Annual Review of Psychology, 52, 397-422.
Masten, A. S., & Reed, M. G. J. (2002). Resilience in development. Handbook of positive psychology(pp.74-88). Oxford, UK: Oxford University Press.
Mellina, E. (2003). Happy doesn’t always mean productive. Canadian HR Reporter, 16, 15-19.
Murlis, H., & Schubert, P. (2002). Engage employees and boost performance: Hay Group Working Paper.
Nadler, D. A., & Tushman, M. L. (1990). Beyond the charismatic leader: Leadership and organizational change. California Management Review, 32, 77-97.
Nahrgang, J. D., Morgeson, F. P., & Hofmann, D. A. (2011). Safety at work: A meta-analytic investigation of the link between job demands, job resources, burnout, engagement, and safety outcomes. Journal of Applied Psychology, 96, 71-94.
Podsakoff, P. M., MacKenzie, S. B., Moorman, R. H., & Fetter, R. (1990). Transformational leader behaviors and their effects on followers' trust in leader, satisfaction, and organizational citizenship behaviors. The Leadership Quarterly, 1, 107-142.
Schaufeli, W. B., & Bakker, A. (2003). Utrecht work engagement scale. Occupational Health Psychology Unit Utrecht University.
Schaufeli, W. B., & Bakker, A. B. (2004). Job demands, job resources, and their relationship with burnout and engagement: A multi- sample study. Journal of Organizational Behavior, 25, 293-315.
Schaufeli, W. B., Bakker, A. B., & Salanova, M. (2006). The measurement of work engagement with a short questionnaire: A cross-national study. Educational and Psychological Measurement, 66, 701-716.
Schaufeli, W. B., Salanova, M., González-Romá, V., & Bakker, A. B. (2002). The measurement of engagement and burnout: A two sample confirmatory factor analytic approach. Journal of Happiness Studies, 3, 71-92.
Seltzer, J., & Bass, B. M. (1990). Transformational leadership: Beyond initiation and consideration. Journal of Management, 16, 693-703.
Shamir, B., House, R. J., & Arthur, M. B. (1993). The Motivational Effects of Charismatic Leadership: A Self-Concept Based Theory. Organization Science, 4, 577-594.
Snyder, C. R. (1994). The psychology of hope: You can get there from here: New York, US: Free Press.
Sosik, J. J. (2006). Full range leadership: Model, research, extensions and training. Inspiring leaders, 33-66.
Stogdill, R. M. (1974). Handbook of leadership: A survey of theory and research: New York, US: Free Press.
Sweetman, D., & Luthans, F. (2010). The power of positive psychology: Psychological capital and work engagement Work Engagement: A Handbook of Essential Theory and Research(pp.54 -68). New York, US: Psychology Press.
Vroom, V. H. (1964). Work and motivation. Oxford, England: Wiley.
Waldman, D. A., Bass, B. M., & Yammarino, F. J. (1990). Adding to contingent-reward behavior. Group & Organization Management, 15, 381-394.
Xanthopoulou, D., Bakker, A. B., Demerouti, E., & Schaufeli, W. B. (2007). The role of personal resources in the job demands- resources model. International Journal of Stress Management, 14, 121-141.
Yammarino, F. J., & Bass, B. M. (1990). Transformational leadership and multiple levels of analysis. Human Relations, 43, 975-995.
Yukl, G. (1999). An evaluation of conceptual weaknesses in transformational and charismatic leadership theories. The Leadership Quarterly, 10, 285-305.
Zhu, W., Chew, I. K. H., & Spangler, W. D. (2005). CEO transformational leadership and organizational outcomes: The mediating role of human-capital-enhancing human resource management. The Leadership Quarterly, 16, 39-52.
백승근, 신강현, 김완석, 유지훈, 한영석. (2010). 조직의 정서표현규칙이 종업원의 직무태도에 미치는 영향: 정서노동 전략의 매개효과를 중심으로. 한국심리학회지 산업 및 조직, 23, 27-51.
백승근, 신강현, 허창구. (2011). 서비스직 종업원의 정서노동 과정에서 정서지능의 매개된 조절효과 검증: 스트레스 교류모형과 직무요구-자원 모형을 중심으로. 한국심리학회지 산업 및 조직, 24, 429-454.
홍세희. (2000). 특별기고: 구조 방정식 모형의 적합도 지수 선정기준과 그 근거. 한국심리학회지 임상, 19, 161-177.
Albrecht, S. L. (2010). Handbook of Employee Engagement: Perspectives, Issues, Research and Practice. Glos, England: Edward Elgar Publishing.
Allen, J. S., Bycio, P., & Hackett, R. D. (1995). Further assessments of Bass's (1985) conceptualization of transactional and transformational leadership. Journal of Applied Psychology, 80, 468-478.
Avey, J. B., Luthans, F., & Jensen, S. M. (2009). Psychological capital: A positive resource for combating employee stress and turnover. Human Resource Management, 48, 677-693.
Avey, J. B., Luthans, F., & Mhatre, K. H. (2008). A call for longitudinal research in positive organizational behavior. Journal of Organizational Behavior, 29, 705-711.
Avolio, B. J. (1999). Full leadership development: Building the vital forces in organizations: Sage Publications, Inc.
Avolio, B. J., Bass, B. M., & Jung, D. I. (1999). Re-examining the components of transformational and transactional leadership using the multifactor leadership questionnaire. Journal of Occupational and Organizational Psychology, 72, 441-462.
Bakker, A. B., & Demerouti, E. (2007). The job demands-resources model: state of the art. Journal of Managerial Psychology, 22, 309-328.
Bakker, A. B., Hakanen, J. J., Demerouti, E., & Xanthopoulou, D. (2007). Job resources boost work engagement, particularly when job demands are high. Journal of Educational Psychology, 99, 274-284.
Bandura, A. (1997). Self-efficacy: The exercise of control. New York: W. H. Freeman & Company.
Bandura, A. (2000). Cultivate self-efficacy for personal and organizational effectiveness. In E. A. Locke (Ed.), The Blackwell Handbook of Principles of Organizational Behavior (pp.120- 136). Oxford, UK: Blackwell.
Bass, B., & Avolio, B. (2004). MLQ A Manual and Sampler Set: Revised third edition. Mind Garden: Menlo Park, CA. Available at web site. http://www.mindgarden.com/products/mlqr. htm.
Bass, B. M. (1985). Leadership and performance beyond expectations. New York: Free Press.
Bass, B. M. (1990). Handbook of leadership (3rd ed.). New York: Free Press.
Bass, B. M. (1998). Transformational leadership: Industrial, military, and educational impact. London: Lawrence Erlbaum.
Bass, B. M., & Avolio, B. J. (1997). Transformational Leadership Development: Manual for the Multifactor Leadership Questionnaire: CA, Mind Garden.
Bass, B. M., Avolio, B. J., Jung, D. I., & Berson, Y. (2003). Predicting unit performance by assessing transformational and transactional leadership. Journal of applied psychology, 88, 207-218.
Bollen, K. A., & Stine, R. A. (1992). Bootstrapping goodness-of-fit measures in structural equation models. Sociological Methods & Research, 21, 205-229.
Browne, M., & Cudeck, R. (1993). Alternative ways of assessing model fit. Testing structural equation models (1993) Bollen, Kenneth A.; Long, J. Scott. Newbury Park: Sage Publications.
Burns, J. M. (1978). Leadership. New York: Haprper & Row.
Christian, M. S., Garza, A. S., & Slaughter, J. E. (2011). Work engagement: A quantitative review and test of its relations with task and contextual performance. Personnel Psychology, 64, 89-136.
Colquitt, J. A., Conlon, D. E., Wesson, M. J., Porter, C. O. L. H., & Ng, K. Y. (2001). Justice at the millennium: A meta-analytic review of 25 years of organizational justice research. Journal of applied psychology, 86, 425- 445.
Deluga, R. J. (1988). Relationship of transformational and transactional leadership with employee influencing strategies. Group & Organization Management, 13, 456-467.
Evans, M. G. (1974). Extensions of a path-goal theory of motivation. Journal of Applied Psychology, 59, 172-178.
Gooty, J., Gavin, M., Frazier, L. M., & Snow, B. D. (2009). In the eyes of the beholder: Transformational leadership, positive psychological capital, and performance. Journal of Leadership and Organizational Studies, 15, 353-367.
Greene, C. N., & Podsakoff, P. M. (1981). Effects of withdrawal of a performance-contingent reward on supervisory influence and power. Academy of Management Journal, 24, 527-542.
Harter, J. K., Schmidt, F. L., & Hayes, T. L. (2002). Business-unit-level relationship between employee satisfaction, employee engagement, and business outcomes: A meta-analysis. Journal of Applied Psychology, 87, 268-279.
Hater, J. J., & Bass, B. M. (1988). Superiors' evaluations and subordinates' perceptions of transformational and transactional leadership. Journal of Applied Psychology, 73, 695-702.
Hobfoll, S. E. (2002). Social and psychological resources and adaptation. Review of General Psychology, 6, 307-324.
Hobfoll, S. E., Johnson, R. J., Ennis, N., & Jackson, A. P. (2003). Resource loss, resource gain, and emotional outcomes among inner city women. Journal of Personality and Social Psychology, 84, 632-643.
House, R. J. (1971). A path goal theory of leader effectiveness. Administrative science quarterly, 321-339.
Judge, T. A., & Bono, J. E. (2001). Relationship of core self-evaluations traits - Self-esteem, generalized self-efficacy, locus of control, and emotional stability - With job satisfaction and job performance: A meta-analysis. Journal of Applied Psychology, 86, 80-92.
Judge, T. A., Van Vianen, A. E. M., & De Pater, I. E. (2004). Emotional stability, core self-evaluations, and job outcomes: A review of the evidence and an agenda for future research. Human Performance, 17, 325-346.
Kahn, R. L., & Byosiere, P. (1992). Stress in organizations. In M. D. Dunette, J. M. R. Hough, & H. C. Triandis (Eds.). Handbook of industrial and organizational psychology, (Vol. 4: pp.571-650). Palo Alto, CA: Consulting Psychologists Press.
Kahn, W. A. (1990). Psychological conditions of personal engagement and disengagement at work. Academy of Management Journal, 33, 692- 724.
Kark, R., & Shamir, B. (2002). The dual effect of transformational leadership: Priming relational and collective selves and further effects on followers. Transformational and Charismatic Leadership: The Road Ahead, 2, 67-91.
Lau, R. S., & Cheung, G. W. (2010). Estimating and comparing specific mediation effects in complex latent variable models. Organizational Research Methods.
Law, K. S., Wong, C. S., & Mobley, W. H. (1998). Toward a taxonomy of multidimensional constructs. Academy of Management Review, 23(4), 741-755.
Lowe, K. B., Kroeck, K. G., & Sivasubramaniam, N. (1996). Effectiveness correlates of transformational and transactional leadership: A meta-analytic review of the mlq literature. Leadership Quarterly, 7, 385-425.
Luthans, F. (2002a). The need for and meaning of positive organizational behavior. Journal of Organizational Behavior, 23, 695-706.
Luthans, F. (2002b). Positive organizational behavior: Developing and managing psychological strengths. Academy of Management Executive, 16, 57-72.
Luthans, F., Avolio, B. J., Avey, J. B., & Norman, S. M. (2007). Positive psychological capital: Measurement and relationship with performance and satisfaction. Personnel Psychology, 60, 541- 572.
Luthans, F., & Youssef, C. M. (2004). Human, social, and now positive psychological capital management: Investing in people for competitive advantage. Organizational Dynamics, 33, 143-160.
Luthans, F., & Youssef, C. M. (2007). Emerging positive organizational behavior. Journal of Management, 33, 321-349.
Luthans, F., Youssef, C. M., & Avolio, B. J. (2007). Psychological capital: Developing the human competitive edge. New York, US: Oxford University Press.
Maslach, C., Schaufeli, W. B., & Leiter, M. P. (2001). Job burnout. Annual Review of Psychology, 52, 397-422.
Masten, A. S., & Reed, M. G. J. (2002). Resilience in development. Handbook of positive psychology(pp.74-88). Oxford, UK: Oxford University Press.
Mellina, E. (2003). Happy doesn’t always mean productive. Canadian HR Reporter, 16, 15-19.
Murlis, H., & Schubert, P. (2002). Engage employees and boost performance: Hay Group Working Paper.
Nadler, D. A., & Tushman, M. L. (1990). Beyond the charismatic leader: Leadership and organizational change. California Management Review, 32, 77-97.
Nahrgang, J. D., Morgeson, F. P., & Hofmann, D. A. (2011). Safety at work: A meta-analytic investigation of the link between job demands, job resources, burnout, engagement, and safety outcomes. Journal of Applied Psychology, 96, 71-94.
Podsakoff, P. M., MacKenzie, S. B., Moorman, R. H., & Fetter, R. (1990). Transformational leader behaviors and their effects on followers' trust in leader, satisfaction, and organizational citizenship behaviors. The Leadership Quarterly, 1, 107-142.
Schaufeli, W. B., & Bakker, A. (2003). Utrecht work engagement scale. Occupational Health Psychology Unit Utrecht University.
Schaufeli, W. B., & Bakker, A. B. (2004). Job demands, job resources, and their relationship with burnout and engagement: A multi- sample study. Journal of Organizational Behavior, 25, 293-315.
Schaufeli, W. B., Bakker, A. B., & Salanova, M. (2006). The measurement of work engagement with a short questionnaire: A cross-national study. Educational and Psychological Measurement, 66, 701-716.
Schaufeli, W. B., Salanova, M., González-Romá, V., & Bakker, A. B. (2002). The measurement of engagement and burnout: A two sample confirmatory factor analytic approach. Journal of Happiness Studies, 3, 71-92.
Seltzer, J., & Bass, B. M. (1990). Transformational leadership: Beyond initiation and consideration. Journal of Management, 16, 693-703.
Shamir, B., House, R. J., & Arthur, M. B. (1993). The Motivational Effects of Charismatic Leadership: A Self-Concept Based Theory. Organization Science, 4, 577-594.
Snyder, C. R. (1994). The psychology of hope: You can get there from here: New York, US: Free Press.
Sosik, J. J. (2006). Full range leadership: Model, research, extensions and training. Inspiring leaders, 33-66.
Stogdill, R. M. (1974). Handbook of leadership: A survey of theory and research: New York, US: Free Press.
Sweetman, D., & Luthans, F. (2010). The power of positive psychology: Psychological capital and work engagement Work Engagement: A Handbook of Essential Theory and Research(pp.54 -68). New York, US: Psychology Press.
Vroom, V. H. (1964). Work and motivation. Oxford, England: Wiley.
Waldman, D. A., Bass, B. M., & Yammarino, F. J. (1990). Adding to contingent-reward behavior. Group & Organization Management, 15, 381-394.
Xanthopoulou, D., Bakker, A. B., Demerouti, E., & Schaufeli, W. B. (2007). The role of personal resources in the job demands- resources model. International Journal of Stress Management, 14, 121-141.
Yammarino, F. J., & Bass, B. M. (1990). Transformational leadership and multiple levels of analysis. Human Relations, 43, 975-995.
Yukl, G. (1999). An evaluation of conceptual weaknesses in transformational and charismatic leadership theories. The Leadership Quarterly, 10, 285-305.
Zhu, W., Chew, I. K. H., & Spangler, W. D. (2005). CEO transformational leadership and organizational outcomes: The mediating role of human-capital-enhancing human resource management. The Leadership Quarterly, 16, 39-52.