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Transformational leadership and job satisfaction: the moderating effect of contingent reward

Albert Puni (Department of Business Administration, University of Professional Studies, Accra, Ghana)
Ibrahim Mohammed (Department of Banking and Finance, University of Professional Studies, Accra, Ghana)
Emmanuel Asamoah (Department of Business Administration, University of Professional Studies, Accra, Ghana)

Leadership & Organization Development Journal

ISSN: 0143-7739

Article publication date: 10 May 2018

Issue publication date: 29 May 2018

4863

Abstract

Purpose

The purpose of this paper is to investigate the mechanisms that link transformational leadership to employee job satisfaction by examining the moderating effect of contingent reward on the relationships.

Design/methodology/approach

The study employed explanatory and cross-sectional survey design. Data were obtained from 315 bank employees and analyzed using correlational and multiple regression techniques.

Findings

The results revealed that there are positive relationships between the dimensions of transformational leadership and job satisfaction which are augmented by contingent reward. However, the relationships of idealized influence and intellectual simulation to job satisfaction are moderated by contingent reward, implying that, in the banking sector, the positive influence of these transformational leadership traits on employee job satisfaction can be enhanced by contingent reward.

Originality/value

The paper makes an important contribution to the existing organizational literature by establishing the utility of contingent reward as a moderator on the relationship between transformational leadership and employee job satisfaction in a banking sector.

Keywords

Citation

Puni, A., Mohammed, I. and Asamoah, E. (2018), "Transformational leadership and job satisfaction: the moderating effect of contingent reward", Leadership & Organization Development Journal, Vol. 39 No. 4, pp. 522-537. https://doi.org/10.1108/LODJ-11-2017-0358

Publisher

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Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

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