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Leadership & Organization Development Journal

The relationship between leadership and follower in-role performance and satisfaction
with the leader: The mediating effects of empowerment and trust in the leader
Timothy Bartram, Gian Casimir,
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To cite this document:
Timothy Bartram, Gian Casimir, (2007) "The relationship between leadership and follower in‐role
performance and satisfaction with the leader: The mediating effects of empowerment and trust
in the leader", Leadership & Organization Development Journal, Vol. 28 Issue: 1, pp.4-19, doi:
10.1108/01437730710718218
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LODJ
28,1 The relationship between
leadership and follower in-role
performance and satisfaction
4
with the leader
Downloaded by BAHRIA INSTITUTE OF MANAGEMENT & COMPUTER SCIENCE At 07:18 22 May 2017 (PT)

Received October 2005
Revised February 2006
The mediating effects of empowerment and
Accepted April 2006 trust in the leader
Timothy Bartram
School of Business, La Trobe University, Australia, and
Gian Casimir
Newcastle Graduate School of Business, University of Newcastle,
Newcastle, Australia

Abstract
Purpose – The purpose of this paper is to provide an examination of the mediating effects of
empowerment and trust in the leader on the relationship between transformational leadership and two
outcomes (i.e. the in-role performance of followers as rated by the leader and satisfaction with the
leader).
Design/methodology/approach – In total, 150 customer service operators in an Australian
call-centre were invited to participate in a leadership questionnaire and informed that their
performance would be rated by their immediate supervisors (i.e. their line manager) as part of the
study. A sample of 109 responses were used in the analysis.
Findings – Partial least squares analysis revealed that the effects of transformational leadership on
the in-role performance of followers were mediated by empowerment and trust in the leader, whereas
the effects of transformational leadership on satisfaction were partially mediated by trust in the leader.
Research limitations/implications – The implications of the findings for leadership theorists is
that a more fine-grained approach is required to understand the leadership “black box” in that
different mediators have been shown to affect different outcomes.
Practical implications – In a call-center context, which has high levels of control, standardization
and formalization, transformational leadership can improve the performance of followers by
empowering them and by developing trust in the leader.
Originality/value – This paper contributes to the literature by providing a concurrent analysis of
the mediating effects of empowerment and trust in the leader on the relationship between
transformational leadership and in-role performance and job satisfaction.
Keywords Leadership, Empowerment, Trust, Transformational leadership
Paper type Research paper
Leadership & Organization
Development Journal There is growing interest in the role of leaders fostering employees to take initiative,
Vol. 28 No. 1, 2007
pp. 4-19 embrace risk, stimulate innovation and cope with uncertainty (Spreitzer, 1995).
q Emerald Group Publishing Limited
0143-7739
Additionally, recent work on shared or distributed leadership emphasizes the
DOI 10.1108/01437730710718218 importance of leaders empowering followers and accepting mutual influence to

Research on transactional leadership and transformational leadership. 1997. Lowe et al. admiration of the leader) and cognitive states (e. satisfaction. behaving self-sacrificially. 2000).g. 1989). Klein and House.. 1990. Trust can be defined as a willingness to depend on another party (Mayer et al. Transformational leadership has been defined in terms of articulating a compelling vision for followers. as evidenced by self-sacrificial behaviors. however. 2000).g. indicate that the leader is “walking the talk” and thereby builds credibility (Conger and Kanungo. 1995) as well as an expectation that the other party will reciprocate if one cooperates. 1996. 1980) or competence is essential to trust in organizational leader-follower relationships because followers are unlikely to develop trust in their leader unless they believe the leader is capable of fulfilling the leadership role (Whitener et al. Jung and Avolio. extra-role behaviors and organizational learning (e.. Trust also stems from an individual’s confidence in another party’s intentions and motives towards oneself and others (Butler and Cantrell. There is also a growing body of work that demonstrates follower the importance of trust in the leader as a mediator of leadership effects on followers.. Transformational leadership and trust in the leader Leaders need to be trusted by their followers because trust is the mortar that binds the follower to the leader (Nanus. Jung and Avolio.e. facilitate performance (e. Gronn. Credibility and integrity are also cornerstones of trust (Kouzes and Posner. The empowerment of employees is vital for Leadership and organizational effectiveness.. Transformational leadership has been shown consistently to be associated with trust in the leader (e. Transformational leadership facilitates the development of trust in the leader for several reasons: The leader’s own determination and commitment to the vision. 1998) in terms of making sound decisions (Kirkpatrick and Locke.. Trust in the leader correlates positively with various outcomes such as organizational citizenship behaviors.. 1998). espousing and embodying shared values causes followers to identify with and admire the leader (Bennis and Nanus. Garcı́a-Morales et al. 1991) and having the ability to achieve the vision. 1996).g. 2000).. Kouzes and Posner. 1993). 1993).g. There is considerable empirical support for transformational leadership in terms of its positive effects on followers with respect to a variety of criteria including justice.g. 2000. 2006). positive emotions experienced by followers due to increased levels of self-efficacy . 1995). 1999). performance. has not examined the role of empowerment and trust in the leader on positive outcomes (e. Pillai et al. value congruence. intellectually stimulating followers. Perceived ability (Cook and Wall. the leader is held in high esteem because of capabilities or attributes) rather than from observed behaviors of the leader (Conger et al. and providing them with individualized consideration (Bass. Bass. in-role performance of followers and satisfaction with the leader) associated with leadership. 1984). effectiveness. and satisfaction (e. 1985. This paper contributes to the literature by providing a concurrent analysis 5 Downloaded by BAHRIA INSTITUTE OF MANAGEMENT & COMPUTER SCIENCE At 07:18 22 May 2017 (PT) of the mediating effects of empowerment and trust in the leader on the relationship between transformational leadership and two outcomes (i. which helps to engender trust because the leader is seen as capable of fulfilling the leadership role (Whitener et al. the leader’s high level of self-confidence leads to perceptions of competence.g. in-role performance of followers as rated by the leader and satisfaction with the leader)..g. 1988. It is suggested that trust is a vital antecedent of satisfaction with the leader because both stem from affective states (e. Lowe et al.

. Transformational leadership requires trust in the leader because of the uncertainty inherent in changing the status quo. The effects of transformational leadership on performance will be mediated by trust in the leader.. Trust in the leader is therefore important because it is an antecedent of risk-taking behavior (Mayer et al. Podsakoff et al. which is pivotal for trust. Followers need to trust the leader in order to feel positively about the leader and to exert extra effort to perform effectively. 1985). the creation and facilitation of an environment based on trust between the transformational leader and followers is necessary for leadership-driven learning to occur (Taylor. lacks integrity. the following hypothesis is proposed: H1a. 1999. Transformational leadership facilitates the development of trust in the leader because such leadership involves showing concern for the individual needs of followers as well as behaving in ways that are consistent with espoused values (Bass. Based on the above discussion. they will be unlikely to trust the leader and consequently they will be dissatisfied with the leader and not motivated to cooperate fully with the leader thereby adversely affecting their performance. . Trust as a mediator of leadership effects Transformational leadership involves intellectually stimulating followers thereby encouraging them to learn new ways to do their work (Bass. 1997)..e. Trust in the leader has been shown to be an important mediating (or intervening) variable with respect to the relationship between transformational leadership and various outcomes such as organizational citizenship behavior (OCB) (Pillai et al. 1993) and feeling that they are pursuing meaningful goals (Bennis and 28. The effects of transformational leadership on satisfaction with the leader will be mediated by trust in the leader. Transformational leadership and empowerment Followers need to be empowered by their leaders in order to perform optimally. If followers believe the leader is not genuinely concerned about their welfare. and cope with uncertainty (Laschinger et al. 2001. being concerned about the welfare of followers and attending to their individual needs) results in followers believing the leader cares about them as people rather than as means to an end. Merely enacting leadership behaviors does not guarantee that followers will be satisfied or that they will be motivated to perform. followers need to trust the leader if they are to cooperate and commit fully to the leader’s vision (Bass. However.1 Nanus. 2000). 2000). and acting as a mentor and paying close attention to 6 followers’ needs for achievement and growth (Kark and Shamir. LODJ (Shamir et al.. individualized consideration (i. performance and satisfaction with the leader (Jung and Avolio. 1995). confidence in the intentions and motives of the leader result in perceptions of procedural justice and. There is growing interest in the role of leaders in fostering employees to take initiative. stimulate innovation. embrace risk. Furthermore. trust (Pillai et al.. High levels of satisfaction and performance arguably require trust in the leader. 1985) and ultimately improving their performance. 1990).. in turn. 2002) indicate a Downloaded by BAHRIA INSTITUTE OF MANAGEMENT & COMPUTER SCIENCE At 07:18 22 May 2017 (PT) concern for the welfare of followers. 1999). H1b. 1985) as well as if they are to respond positively to intellectual stimulation. or is incompetent.

e. The concept of empowerment is embraced under the guise of the Leadership and movement away from “control” towards a proactive and strategic “commitment” style follower of management (Walton. Transformational leadership energizes followers by providing them with an exciting vision for the future rather than by providing rewards and punishments. 1993. 1995. command and control) with which they are familiar. Impact refers to the belief that one can influence organizational outcomes. and values such that they are able to reach their full potential. confidence. 2002). Shamir et al. Competence refers to self-efficacy or personal mastery in relation to one’s work.. 1977). 1998) who argue that empowerment is a bogus concept in that many employees do not seek empowerment due to the responsibility that goes with it and that many managers continue to rely on methods (e. and self-determination. transformational leaders engage in inspirational behaviors by acting as mentors and in this way they build followers’ self-confidence with respect to goal attainment (Bass and Avolio. In accordance with expectancy theory. 1993). and mindset by having followers re-examine the way they do things and encouraging them to try novel and creative approaches to their work (Bass and Avolio. enhancing followers’ level of self-efficacy. identities. Empowerment refers to a process whereby an individual’s self-efficacy is enhanced (Conger and Kanungo. meaning. 2004). motivation to increase one’s effort in a given task depends on an expectation that effort will result in the desired level of performance (i. Meaning refers to the importance placed on a given job based on one’s values. 1995). high moral standards. There is substantial empirical support for the relationship between empowerment and positive outcomes such as follower performance (see Spreitzer.. Spreitzer et al. 1995. beliefs. transformational leaders “build team spirit through their enthusiasm. and optimism and provide meaning and challenge to their followers’ work. Argyris. preferences. Kirkman and Rosen. 1988. 1985). p. there are those (e. 7 Downloaded by BAHRIA INSTITUTE OF MANAGEMENT & COMPUTER SCIENCE At 07:18 22 May 2017 (PT) Contemporary research on psychological empowerment has focused on articulating the empowerment process and the psychological underpinnings of the construct in terms of self-efficacy and autonomy (Conger and Kanungo. Spreitzer. integrity. 1988). 1990). Thomas and Velthouse (1990) argued that empowerment is multi-faceted and defined it as increased intrinsic task motivation that manifests itself in a set of four cognitions: Competence. Empowerment as a mediator of leadership effects Few studies have examined the mediating effects of empowerment on the relationship between transformational leadership and various outcomes such as performance and job satisfaction.g. 1999). Spreitzer. transformational leadership involves providing followers with individualised consideration by attending to their higher order needs and encouraging them to take on more responsibilities in order to develop their full potential (Kark and Shamir. . Empowerment as an enabling process affects both the initiation and the persistence of followers’ task-oriented behaviors (Bandura. and self-determination” (Avolio et al. 1997. meaning. Thomas and Velthouse. 2004. Beyond providing a vision.. Nevertheless. 1994).g. impact. expectancy). Transformational leadership alters followers’ aspirations.g. these views are consistent with the tenets of shared or distributed leadership. follower satisfaction (e. Self-determination refers to autonomy in making decisions about one’s work (Avolio et al. Transformational leadership also involves using intellectual stimulation to challenge followers’ values. 953). More specifically.. Finally. needs.

self-efficacy has a powerful direct effect on individual performance (Locke. 1966. it was decided that this study will focus on leadership in a call-center. of dispersing leadership throughout the organization. Spector’s Downloaded by BAHRIA INSTITUTE OF MANAGEMENT & COMPUTER SCIENCE At 07:18 22 May 2017 (PT) (1986) meta-analysis of 88 studies found strong evidence of positive associations between self-determination and both job performance and work satisfaction. This effect is consistent with the notion of shared or distributed leadership that recognises the mutual influence betweens leaders and followers as well as the benefits. 2004). such as shared commitment (Judge and Ryman.. Gilmore.. and team effectiveness (Ozaralli. Moreover. 1999. Hackman and Oldham. Based on the above discussion. Bennis and Nanus.1 relation to meaning and impact.. 1980) and the perception that one’s work affects the organization. 2000). 1985). the management of employees in call-centers has largely been informed by . 1977). 2001) and problem solving. Transformational leaders can also empower followers by providing both positive emotional support during times of stress and opportunities to experience task mastery. transformational leadership acts as a catalyst for learning (Garcı́a-Morales et al. 1978) and are encouraged to question the leader’s values and beliefs (Bass et al. Empowering followers to attain organizational goals and performance targets is the very essence of transformational leadership (Avolio et al. The effects of transformational leadership on satisfaction with the leader will be mediated by empowerment. 2006). the following hypothesis is proposed: H2a. The effects of transformational leadership on performance will be mediated by empowerment. to make a difference. low self-efficacy leads to avoidance of all but routine tasks. 2003). In recent years there has been a growth in the use of call-centers (Curtis. Seibert et al. Historically. 2001. to feel useful and to be part of a successful and worthwhile enterprise. H2b. More than two-thirds of all customer interactions in Australia are channeled through a call-center (McLuhan.. In 28. 2004.. 1997). 1987). Indeed. and by a leader who acts as a role model (Bass. 1991). In terms of competence. resulting in 8 low levels of performance (Bandura. empowering followers by providing them with autonomy to manage their work and by increasing their perceived meaningfulness of their work would arguably facilitate their work-related learning and thereby improve both their satisfaction with the leader and performance. LODJ Laschinger et al. an important precondition of work satisfaction is the degree to which work is personally meaningful (Herzberg. 2001). Method Participants Given the changes occurring in the call-center industry. 1997). Transformational leaders inspire their followers to higher levels of achievement by showing them that their work is worthwhile (Bennis and Nanus. Transformational leaders appeal to some fundamental human needs: The need to be important. Furthermore. In relation to self-determination. and thus should enhance follower performance. followers can be empowered by words of encouragement and positive persuasion from the leader. A consequence of transformational leadership is the empowerment of followers such that followers are converted into effective leaders (Burns.

2 years (s:d: ¼ 6:6). The culture of the call center could be described as relaxed and collegial. and they. Recent Leadership and studies have indicated. on average. impact. problem solving with clients) as well as the opportunity to interact with other employees on a professional and social basis. Of the 150 employees that worked in the Melbourne call center. on average. The supervisors directly reported to a senior branch manager. and meaning. 1999). Measures The Multifactor Leadership Questionnaire (MLQ. The in-role performance of followers was measured with the scale from Casimir et al. (2) I feel quite confident that my manager will always try to treat me fairly. Victoria. idealized influence behaviors. competence.1 years (s:d: ¼ 1:4). however. and (4) my manager can be relied on to uphold my best interests. Short Form 5X) was used to measure transformational leadership. This setting was in stark contrast to traditional call centers that closely monitor and impose stringent rules on employees. New South Wales and local branches in every Australian capital city. Management bestowed call center operators significant operational decision-making authority (e. The line-managers were regarded as formal leaders given that they have formal authority over their direct reports.g. Sixty per cent of the operators were female.5 years (s:d: ¼ 3:6). worked with their immediate supervisors for 1. A four-item scale was used to measure trust. The 9 Downloaded by BAHRIA INSTITUTE OF MANAGEMENT & COMPUTER SCIENCE At 07:18 22 May 2017 (PT) average age of the operators was 30. had worked in the call-center for 3. Spreitzer’s (1995) measure of empowerment was used and comprises four components: Autonomy. individualized consideration. The four trust items were: (1) I can trust my manager to make sensible decisions for the future of the company. 14 were supervisors and each managed between ten and 12 employees. The organization provided home and car insurance for hundreds of thousands of clients in Australia. This study focused on one call centre located in Melbourne. and intellectual stimulation were combined to form a single measure of transformational leadership. The sample comprised full-time line-managers and customer service operators from a call-center for a large insurance company. The first three items were obtained from Cook and Wall’s (1980) Interpersonal Trust at Work scale. (3) my manager would be quite prepared to deceive me for his/her own benefit (reversed). inspiration. that a quiet revolution may be occurring in the follower call-center industry as management introduces “empowerment” techniques (Gofton. 1999). (2006). which comprises four items: . The call center The organization in this study was a large Australian insurance company with its headquarters in Sydney. The operators had. Idealized influence attributed. Call centers were an integral part of the organization and operated 24 hours-a-day to provide immediate customer service. Taylorism and personnel management (Marshall and Richardson.

1 to 150) so that their responses could remain anonymous. Procedure Senior management was asked to provide a list of the names of all customer service operators and their immediate supervisors. Principal components analyses Principal components analyses and internal reliability analyses were conducted in SPSS whilst confirmatory factor analyses were conducted in AMOS. Principal component analyses were conducted to examine the factor structures of the MLQ’s sub-scales and the scales used for the mediating and dependent variables. The three-item 10 Downloaded by BAHRIA INSTITUTE OF MANAGEMENT & COMPUTER SCIENCE At 07:18 22 May 2017 (PT) Satisfaction scale from the MLQ was used to measure satisfaction with the leader. transformational leadership. trust. Line-managers were asked to rate the performance of the operators that they supervised. ratings of transformational leadership. The results from this analysis revealed that the first factor accounted for 22.e. Of the 150 matched questionnaires that were distributed. Confirmatory factor analyses were then conducted using structural equation . number of calls per hour). and (4) makes good use of his/her working time. a single-factor test was conducted on all of the items used to test the hypotheses that were obtained from followers (i. Note that the leaders rated the in-role performance of the followers.1 (2) works hard. empowerment. Customer service operators and their supervisors completed the questionnaires separately. except for the in-role performance data.1 per cent of the total variance in the items. trust in the leader. were obtained from the same source (i. 109 usable matched questionnaires were returned (73 per cent response rate). Operators were identified via a code (i. The issue arises therefore as to whether the covariance between the constructs is an artifact of single-source common method bias. and satisfaction with the leader were not correlated significantly with the length of the leader-follower relationship. (3) produces work of a high standard. A five-point Likert scale (i.e. and satisfaction). 0 ¼ strongly disagree. Customer service operators were invited to participate in the study and informed that their performance would be rated by their immediate supervisors (i. The line managers were well placed to know about the performance of individual operators due to the use of sophisticated methods of tracking critical components of employees’ performance (e. Finally. empowerment.e. their line manager) as part of the study.e. Furthermore.e. performance. Results All of the data. the identification code enabled each operator’s responses to be matched to those of his/her immediate supervisor. 4 ¼ strongly agree) was used with all of the measures. The use of performance data from immediate supervisors overcame some of the limitations associated commonly with common method variance. To address this issue. LODJ (1) completes his/her work by the time you have specified. 28. which indicates that common source/method variance does not explain the majority of the covariance between the scales.g. followers) using the same method.

(2) the Goodness of Fit Index (GFI).1 (Hair et al.0 1 0.65 0.93 0.00 0.00 1..91 0. modeling to examine further the proposed single-factor structure of the scales: Leadership and Second-order confirmatory factor analyses were not conducted due to the sample size.001 for all correlations.019 model .015 Table I. The five transformational leadership sub-scales correlated significantly with each other.77 2.88 0.94 0.00 0.94 0.036 Intellectual stimulation 0.58 0.9 while the value of the RMSR should be less than 0.97 0.4 1 0.00 1.50 with the principal component. GFI and AGFI should all be greater than 0.3 2 0.057 Individualized consideration 0.98 0.93 0. This resulted in one item being removed from each of the scales for idealized attributed behaviors. In order to demonstrate adequate model fit.5 1 1.3 1 1.86 5.99 0.011 Idealized behaviors 0. four idealized influence attributed items.99 0.0 1 1.047 Empowerment Autonomy 0.99 0.72 0. follower Four fit indices were used to assess each scale’s factor structure: (1) the Comparative Fit Index (CFI).00 0. and intellectual stimulation. 1998).98 0.0 2 0. A total transformational leadership score was obtained for participants by averaging their responses to 18 items (i.016 Meaning 0. where applicable.92 0.89 0. The inter-item correlations for some of the MLQ sub-scales for transformational leadership were unsatisfactory as evidenced by weak loadings on their principal components: An item was regarded as having a weak loading and removed from a sub-scale if it correlated less than 0.73 2. the values for CFI.035 Confirmatory factor Satisfaction 0.99 0.00 0. three idealized influence behavior items.99 0. four inspirational PLS loadings x2 df CFI GFI AGFI RMSR Transformational leadership Idealized attitudes 0.80 0.98 0.000 Impact 0.99 0.011 analysis results and PLS results for the outer Performance 2. (3) the Adjusted Goodness of Fit Index (AGFI). which is an adjusted form of the GFI that takes into account model complexity.98 0. Trust 16.7 2 1.e.016 Competence 0.99 0.7 2 0. and (4) the Root Mean Square Residual (RMSR). The fit indices provided in Table I are. p . which indicates the amount by which the sample variances and covariances differ from estimates obtained using the hypothesized model.029 Inspirational motivation 0. and show that all of the scales had a satisfactory fit.72 5.86 3.88 2.98 0. which indicates the proportion of the observed 11 Downloaded by BAHRIA INSTITUTE OF MANAGEMENT & COMPUTER SCIENCE At 07:18 22 May 2017 (PT) covariances that is explained by the model-implied covariances.9 1 0.97 0.3 1 0.5 2 1.00 1. 0. for the scale after the removal of the weak-loading item. which is affected less by sample size than other indices such as the normed fit index.99 0.89 0.00 0.98 0.95 0.00 1.

and 6.1 consideration items). More specifically.03 0.05.41 (0. Principal components analyses showed that the three items in each of the empowerment sub-scales loaded strongly onto their respective principal components. 0.76 20. performance. the final transformational leadership scale had satisfactory internal reliability as evidenced by the alpha. A total empowerment score was obtained for participants by averaging their responses to the 12 empowerment items.19 (6. and four individualized 28.85 0.25 0. Satisfaction 3.34 0.40 (0. 5. r . Age 30.70 0. 1998). Scores for trust. which is larger than Nunnally’s (1978) 0.30 (0. the performance scale.24.17. 0. Empowerment 3. performance.61 0.64 0.25 (0. For each scale. and the satisfaction with the leader scale to examine their proposed uni-dimensionality. 0. Trust 4. Perform 3. The four empowerment sub-scales correlated significantly with each other.) Alpha 1 2 3 4 5 6 1.72) 0.04 (0. Table II contains the correlations between the measured variables and shows that transformational leadership had significant positive correlations with empowerment. and meaning). p .22 0.61) deviations). p . p . and satisfaction with the leader were obtained by averaging the responses to the items in each of the scales. which is deemed acceptable (Hair et al.70 criterion. impact.35 0.d. autonomy. correlations. 0. Partial least squares analysis A partial least squares (PLS) analysis was conducted to examine the mediation effects of empowerment and satisfaction on the relationships between the two types of leadership and the two dependent variables.78 0.e. all of the items loaded strongly onto one component and the fit indices shown in Table I are satisfactory for a single-factor representation of each of the scales.31 (0.74 0.01 .00 (0.78) 0.44) 0. As shown in Table II.81 (0. As shown in Table II.70) Cronbach’s alphas. The fit indices provided in Table I show that all of the sub-scales have satisfactory fit.91 0. Empowerment had significant positive Downloaded by BAHRIA INSTITUTE OF MANAGEMENT & COMPUTER SCIENCE At 07:18 22 May 2017 (PT) correlations with both performance and satisfaction. trust in the leader had a stronger correlation with satisfaction with the leader than with the in-role performance of followers. competency. Finally.6) 2.10 0. empowerment was more strongly correlated with the in-role performance of followers than with satisfaction with the leader.05 for all correlations.49) Means (standard 4. 3. the empowerment scale had an internal reliability coefficient of 0. As shown in Table II.89 (0. LODJ motivation items. Confirmatory factor analyses were conducted on each of the empowerment sub-scales (i. three intellectual stimulation items. PLS was selected to analyze the overall model because: Mean (s.71) Table II. 0. 12 trust.57) 0. and satisfaction.. Separate confirmatory factor analyses were conducted on the trust scale.18 0. all three of these scales had satisfactory internal reliability. trust had significant positive correlations with both performance and satisfaction. More specifically.62) 0.64. measured variables significance: r .36 (0.67) average variance extracted for the Notes: Average variance extracted for each scale is presented in parentheses on the diagonal. TF 3.

49). 1998). Leadership and . The results from the PLS analysis are presented in Figure 1 and show that: . . and . it is well suited for testing complex models. In order for a measure to have acceptable convergent and discriminant validity. which is calculated by squaring the correlation coefficient between the construct and another construct. The AVEs for the measured constructs are presented in Table II and show that the AVE was greater than 0. 1998). 1998).5 for all of the constructs. it does not require assumptions of multivariate normality. it is suitable for small samples. it should have an AVE greater than 0. Figure 1. the effects of transformational leadership on performance were mediated by trust in the leader (H1a was therefore supported). except for empowerment (AVE ¼ 0.5 and share more variance with its items than with other constructs in the model (Chin. All of the constructs therefore had acceptable convergent and discriminant validity as the AVE for each construct is greater than the variance explained by any other construct. Bootstrapping is a method for testing the reliability of the dataset and is based on a random re-sampling of the original dataset to create new samples of the same size as the original dataset for the purpose of estimating the error of the estimated path coefficients (Chin. average communality) of the items representing a construct as obtained from the PLS analysis. it is appropriate when multicollinearity is present (Chin.e. The AVE represents the average squared loading (i. Results from the PLS analysis . The bootstrapping procedure in PLS Graph was used to test the significance of the 13 Downloaded by BAHRIA INSTITUTE OF MANAGEMENT & COMPUTER SCIENCE At 07:18 22 May 2017 (PT) regression coefficients. follower . The average variance extracted (AVE) by the construct representing its items was calculated to test the convergent validity and the discriminant validity of the measured constructs.

In contrast. followers need to be empowered and to trust their leaders. First. and 14 Downloaded by BAHRIA INSTITUTE OF MANAGEMENT & COMPUTER SCIENCE At 07:18 22 May 2017 (PT) . extra effort) that are distinct from the effects of other . but not job satisfaction.1 mediated partially by trust in the leader as evidenced by the significant direct effect of transformational leadership on satisfaction with the leader (H1b was therefore partially supported). it appears that in order to improve in-role performance and satisfaction with the leader. Specifically. idealized attributes and behaviors). trust leads to greater job satisfaction. The results revealed that psychological empowerment mediates the relationship between transformational leadership and the leaders’ ratings of the in-role performance of their followers. all of which are components of the empowerment measure used in this study. This finding is consistent with Shamir et al.g. . these findings have demonstrated that mediators can have specific effects on different outcome variables. The results have several important implications for leadership theorists and leadership practitioners.e. These findings are consistent with those of Jung and Avolio (2000) and show that transformational leadership has unique effects on followers’ satisfaction with the leader. but not performance. in part. the effects of transformational leadership on performance were mediated by empowerment (H2a was therefore supported). their ability to control their environment. The implications of the findings for leadership theorists are that a fine-grained approach is required to understand the leadership “black box” in that different mediators were found to affect different outcomes. and their perception of task meaningfulness.’s (1993) theory which states that the transformational effects of charismatic leadership are due. Shamir et al. the effects of transformational leadership on satisfaction with the leader were not mediated by empowerment (H2b was therefore not supported). (1993) regarded transformational leadership as directly affecting followers’ sense of competence. self-efficacy) having effects on specific outcome variables (e. to evoke admiration of and identification with the leader. the effects of transformational leadership on satisfaction with the leader were 28. in-role performance of followers as rated by the leader and satisfaction with the leader) were examined. The results also revealed that trust in the leader partially mediated the relationship between transformational leadership and satisfaction with the leader. It stands to reason that empowering followers helps them to perform their jobs more so than does trust in the leader because empowerment involves behaviors that directly influence how followers perceive and perform their work.e. In sum. It is noteworthy that the in-role performance of followers was more closely related to empowerment than to trust in the leader. to changes in the self-concept of followers. The only significant direct effect was that of transformational leadership on satisfaction with the leader.g. a fine-grained approach would recognize the likelihood of some mediators (e. More specifically. The findings indicate that empowerment leads to improved performance. LODJ . presumably due to its charismatic components (i. their values. Discussion The mediating effects of psychological empowerment and trust in the leader on the relationship between transformational leadership and two outcomes (i. It might be the case that these unique effects stem from the capacity of transformational leadership.

which has high levels of control. for various reasons (e. although the in-role performance of followers was rated by their leaders to circumvent the effects of common method bias. the call-center industry should continue to introduce and experiment with workplace innovations that foster psychological empowerment rather than rely on transactional behaviors that emphasize economic exchanges and solving work-related problems. Limitations Some limitations need to be mentioned. task structure and follower expertise) in the relationship between transformational 15 Downloaded by BAHRIA INSTITUTE OF MANAGEMENT & COMPUTER SCIENCE At 07:18 22 May 2017 (PT) leadership and both trust in the leader and empowerment could also be explored via qualitative approaches. issues such as the role of contextual factors (e. to develop trusting leader-follower relationships. leaders can facilitate the development of perceptions of trustworthiness through competence. in a call-center context. standardization and formalization.g. it would have been better if the in-role performance of followers was measured using objective data such as average call time. leadership selection should include the personality and the motives of leadership candidates because some candidates who are highly competent may be unable. Second. These data are collected routinely by call-centers but the researchers were not allowed access to such data. As Gofton (1999) suggested. As has been shown in this study. Furthermore. for example. Interview-based data.g. Additionally. The implications of the findings for leadership practitioners are quite clear. responsibility. mediators (e. may reveal details on how leaders actually empower followers and on how the development of trust is associated with empowerment. First. and being genuinely concerned about the best interests of their followers. data were collected from a single organization in the call-centre industry and therefore the generalizability of the findings is questionable. trust in the leader may also influence other important outcomes such as organizational commitment. empowerment. the data for transformational leadership. as well as by increasing the accountability. and independent decision-making authority of employees. Finally. . the fair treatment of their followers. Additionally. followers) and this method may bias the relationships between these variables. These findings have significant consequences for managerial practice and for human resource development.e. Machiavellian tendencies).g. trust and empowerment) on these variables. transformational leadership can improve the performance of followers by empowering them and by developing trust in the leader. trust. It can be inferred from the findings that trust in the leader is an important outcome of transformational leadership as trust mediated the relationship between such leadership and both satisfaction with the leader and performance. Although trustworthiness appears relatively easy to achieve. First. call-center management can better ensure the long-term productivity and skill development of employees by providing them with flexible working hours and opportunities for developing problem solving skills. and satisfaction were obtained via a common method from a single source (i. more light can Leadership and be shed into the black box of leadership by utilizing qualitative methodologies that follower examine processual issues associated with transformational leadership. Given that trust in the leader enhances satisfaction with the leader.

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