International Journal of Management Perspective

Vol. 1, No.4
pp. 81-94

Transformational Leadership, Job

Satisfaction, and Organizational Innovation

Siroos Ghanbari*, Asghar Eskandari**1

Abstract
The purpose of this research is to identify relationship between transformational leadership
with job satisfaction, and organizational innovation in secondary schools of the Hamadan
province.The research method is descriptive- correlation. Statistical population included all
teachers comprised of 8640 people, and the sample size of 368 subjects was determined based
on the Cochran formula. The sampling method used is proportional stratified random
sampling. Data collected were used from three questionnaires with these items:
transformational leadership questionnaire of Bass and Avolio, job satisfaction questionnaire
of Brayfield & Rothe, and organizational innovation questionnaire of Ettlie and O'Keefe. For
appointment of questionnaires validity, of the method content-related validity, and to assess
scale the reliability of the questionnaires, Cronbach's Alpha coefficient was used. It was
estimated 0.94, 0.84 and 0.78 respectively. Results situation of transformational leadership,
job satisfaction, and organizational innovation was above the average level. Pearson
correlation coefficient revealed that there is a significant positive relationship between
transformational leadership with job satisfaction, and organizational innovation. The finding
of multiple regression analysis indicated that the components of transformational leadership,
Factor of individual considerationis most effective in predicting job satisfaction, and the
factors of individual consideration and idealized influence have the highest impact prediction
of organizational innovation.

Keywords: Idealized Influence; Individual Consideration; Job Satisfaction; Organizational

Innovation; Transformational Leadership.

*Assistant Professor. Bu-Ali Sina University, Educational Administration, Hamadan, Iran

(Corresponding author), E-mail: siroosghanbari@yahoo.com.
**MA. Educational Administration, Bu-Ali Sina University, Hamadan, Iran.
82 International Journal of Management Perspective

1. Introduction
Organizations today, for improvement of efficiency, effectiveness, and
productivity requires to used new methods of leadership. One of the latest leadership
approaches is transformational leadership style. Transformational leadership play
role of teacher, coach and mentor for employees in an organization. He pays
attention to needs, and inspires their followers. Transformational leader stimulates
and encourages all employees to achieve organizational goals. Employees also, will
endeavor more than what is expected of them. On the basis, transformational
leadership will improve capabilities, commitment and organizational trust, ethics
and job satisfaction, creativity and organizational innovation; and thereby will
enhance performance and organizational effectiveness.
Transformational leadership is important in promoting and managing school
development by influencing teachers both directly and indirectly. Research indicates
transformational leadership practices supply a link to teacher outcomes and teacher
beliefs regarding their individual and collective ability in addition to their collective
capacity [12].
Transformational leaders engage their direct reports by appealing to upper level
needs (e.g., self-actualization) and ideals that yield increased job satisfaction,
performance, and organizational commitment [4].
Researchers confirmed that is a significant relationship between transformational
leadership style with job satisfaction [2, 4, 5, 7, 9, 31, 32, 43, 46, 52, 53].
Transformational leaders enhance innovation within the organization; the
tendency of organizations to innovate. Leaders' use of inspirational motivation and
intellectual stimulation is critical for organizational innovation [15].
Scholars showed that is significant positive correlation between transformational
leadership with organizational innovation [7, 11, 19, 25, 28, 38, 45].
The overall purposeof thisstudy is: Identification of relationship between
transformational leadership style with job satisfaction, and organizational innovation
in secondary schools of the Hamadan province.

2. Literature Review
Transformational Leadership. Transformational leadership term originated with
the work of Downton (1973), House (1977), and gained popularity when opted by
political sociologist Burns in his book Leadership in 1978. In 1985, Bass extended
the theory of transformational leadership [17, 23, 27].
In contrast to Downton (1973) and House (1977) who viewed leadership from a
historical and sociological approach, Burns (1978) was the first to view leadership
from aphilosophical approach and introduce an ethical component [17].
Transformational leadership is currently one of the most popular approaches to
leadership [36]. Transformational leadership is thought to be a process whereby the
leader encourages support and change through a shared vision [26].
Transformational leaders have a tendency to promote high expectations, personalize
achievements and recognition, and model desired behaviors [16].
Transformational Leadership refers to “the process whereby an individual
engages with others and creates a connection that raises the level of motivation and
morality in both the leader and the follower” [37].
According to Pastor and Mayo (2008), transformational leaders exert strong
influence on followers by giving them individualized consideration, discussing
Transformational Leadership, Job Satisfaction, and … 83

about possibilities in the future, and acting with self-sacrifice [41]. Odom and Green
(2003) believed that transformational leadership focuses on the moral development
of followers [39].
Transformational leaders can be seen as agents of change because of their
commitment for continuous self-development of each member of the group in order
to reach their ideals. Because of this commitment is usually higher than in other
group-leader relations and followers perform beyond expectations [34].
Literature reveals that transformational leadership is a significant correlation of
the amount of effort exerted by the followers, leader-member satisfaction, employee
performance and the overall effectiveness of individuals and by extension, of the
organization [7, 43].
Essentially, transformational leaders produce higher levels ofExtra Effort,
Effectiveness, and Satisfaction in others [2].
Transformational leadership is linked to organizational commitment [3, 18, 42].
Also, some researchers emphasis on relationship between transformational
leadership to organizational commitment and job satisfaction [31, 32, 46, 52, 53].
Ibrahim, Nurzahit, and Türker (2010) linked transformational leadership style to
organizational commitment in the Turkish banking industry [24].
Bass (1985) described four scales for transformational leadership style:(1)
idealized influence, (2) inspirational motivation, (3) intellectual stimulation, and
(4)individualized consideration[6, 7, 23, 35, 36].
Transformational leadership factors summarized as follows [5]:

1. Charismatic leadership or idealized influence. Idealized influence defined as

meeting the needs of others before their own personal needs, avoiding the use of
power for personal gain, demonstrating high moral standards, and setting
challenging goals for their followers.
2. Inspirational motivation. Inspirational motivation is to motivate and inspire those
around them by displaying enthusiasm and optimism, involving the followers in
envisioning attractive future states, communicating high expectations, and
demonstrating commitment to the shared goals. It describes managers who motivate
associates to commit to the vision of the organization.
3. Intellectual stimulation. Intellectual stimulation means the leader’s consistent
effort to stimulate followers to be innovative and creative as well as the leader’s
effort to encourage followers to question assumptions and to reframe problems and
approach them in new ways. Managers with intellectual stimulation promote critical
thinking and problem solving to make the organization better.
4. Individual consideration. Individualized consideration represents the leader’s
consistent effort to treat each individual as a special person and act as a coach and
mentor who continually attempts to develop his or her followers’ potential.
Managers with individual consideration encourage associates to reach goals that
help both the associates and the organization.

Job Satisfaction. Job satisfaction has been described as “an affective (that is,
emotional) reaction to a job that results from the incumbent’s comparison of actual
outcomes with those that are desired (expected, deserved, and so on)” [10]. Kinicki
et al. (2002) identified job satisfaction as a very popular dependent variable in 12,
84 International Journal of Management Perspective

400 research studies in industrial and organizational psychology and occupational

health [29].
Furthermore, job satisfaction is defined as “the extent to which people like
(satisfaction) or dislike (dissatisfaction) their jobs” (Spector, 1997). This definition
suggests that job satisfaction is a general or global affective reaction that individuals
hold about their job. On the other hand, Locke (1969) defined job satisfaction as a
positive emotional feeling, a result of one’s evaluation towards his or her job
experience by comparing between what he or she expects from his or her job and
what he or she actually gets from it [30].
Hoy and Miskel (1991) stated, "In educational settings, job satisfaction is a
present-and past-oriented affective state of like or dislike that results when an
educator evaluates his or her work role" [22].
Administrators and superintendents needed to develop and encourage job
satisfaction in teachers. Consequently, positive teacher commitment begins with
administrators cultivating teacher job satisfaction [20].
Locke (1976) defines job satisfaction as individuals’ subjective valuation of
different aspects of their job. Higher job satisfaction may be due to improvements in
the objective aspects of the job either, because of reduced expectations or because
dissatisfying aspects of the job are downplayed while pleasing aspects are given
greater weight [49].
The transformation happens in the organization has also a positive influence on
employees and this will increase employees’ job satisfaction [52]. Transformational
leaders create a safe and soft influence on their followers and provide a high job
satisfaction level by supporting followers’act of making individual choices.
Therefore, the transformational leaders encourage and motivate their followers to
have creative ideas and give reward if the followers are well performed [54].
Cifuentes (2013) in doctoral dissertation showed that were strong positive
relationships between transformational, transactional, and servant leadership styles
and satisfaction with leadership and motivation, as well as satisfaction with
leadership and motivation [9].
Walumbwa et al (2004), in a study conducted among 402 Chinese and Indian
banking and finance staff, found that transformational leadership is positively
related to organizational commitment and job satisfaction, and negatively related to
work withdrawal [53].

Organizational Innovation. The innovation literature that focuses on the

organizational level also refers to newknowledge creation. As is the case in the
team-level innovation literature, knowledge mobilization is critical, and the factors
that facilitate this process are communication and cooperation among different
functions within the organization. Moreover, organizational slack is also considered
important for innovation [50].
Vigoda-Gadot et al. (2005) view innovativeness as a multi-dimensional
organizational trait. They define organizational innovativeness as including five
dimensions: creativity, risk-taking, openness to change, future orientation, and
pro-activeness [51].
Similarly, Dundon (2005) differentiates innovation from creativity and suggests
that innovation comprises four elements, namely, creativity, strategy, application,
and profitability [14].
Transformational Leadership, Job Satisfaction, and … 85

According to Armbruster et al. ( 2008), organizational innovation that ischanges

in the structure and processes of an organization due to implementation of new
managerial and working concepts and practices, such as teamwork in production,
supply chain management, or quality management systems [1].
From the viewpoints of Battisti and Stoneman (2010) organizational innovation
involving new management practices, new organization, new marketing concepts
and new corporatestrategies [8].
Pacharn & Zhang (2006) propose two types of innovation, namely,
organizational innovation and technological innovation [40].
In addition, Desouza et al. (2007) suggest that two forms of innovation exist in a
corporate environment (i.e. user innovations, and organizational innovation) [13].
Similarly, Popadiuk and Choo (2006) classify organizational innovation into
three categories: technological innovation, market innovation, and administrative
innovation [44].
Furthermore, Subramaniam (2005) identifies four classifications of
organizational innovation, including organizational innovation, innovation climate,
team innovation, and individual innovation [48].
Investigators in their investigations showed that is positive correlation between
transformational leadership with organizational innovation and organizational
learning [11, 28, 33, 38, 45].
The results of study Ho (2011) indicated that the employees’ meditation
experience significantly and positivelyinfluenced employees’ self-directed learning
readiness, companies’ organizational innovation capability and organizational
performance; and the study found that employees’ self-directed learning has a direct
and significant impact on organizational innovation, and organizational innovation
has direct and significant influences on organizational performance [21].
The results of research Gumusluoglu and Ilsev (2009) suggested that
transformational leadership has important effects on creativity at both the individual
and organizational levels. At the individual level, the results of hierarchical linear
modeling show that there is a positive relationship between transformational
leadership and employees' creativity. In addition, transformational leadership
influences employees' creativity through psychological empowerment. At the
organizational level, the results of regression analysis reveal that transformational
leadership positively associates with organizational innovation [19].
Sarros, Cooper & Santora (2008) in a researchreported isrelationship between
transformational leadership and climate for organizational innovation and
organizational culture [47].
Jung et al (2003) suggests that transformational leadership is associated with
innovation at the organizational level and this is partially due to transformational
leaders creating an environment that facilitates follower innovation [25].

3. Problem Description
There are many problems and challenges in the fields of organizational,
educational, learning, teaching, academic achievement; and also lack pay attention
and utilizationof new ideas and thoughts; and failure to use appropriate methods for
improvement teacher satisfaction. Therefore, it was felt necessary to carry out the
present study. Accordingly, the main problem of research presented in model 1.
86 International Journal of Management Perspective

Figure1. Research proposed model

Based on Figure1, the general purpose of the research is: Identification of

relationship between transformational leadership style with job satisfaction, and
organizational innovation in secondary schools of the Hamadan province.

Research Questions and Hypotheses

The Research Questions:
1. How is the transformational leadership in between secondary schools managers of
the Hamadan province?
2. How is the job satisfactionin between secondary schools teachersof the Hamadan
province?
3. How is the organizational innovationin secondary schools of the Hamadan
province?

The Research Hypotheses: There are four hypotheses in this study:

1. There is the significant relationship between transformational leadership, and its
dimensions with job satisfaction, in secondary schools of the Hamadan province.
2. There is the significant relationship between transformational leadership, and its
dimensions with organizational innovation in secondary schools of the Hamadan
province.
3. Dimensions of transformational leadershipcould predict job satisfactionin
secondary schools of the Hamadan province.
4. Dimensions of transformational leadershipcould predict organizational
innovationin secondary schools of the Hamadan province.

4. Methodology
Research Method. The current research method is descriptive-correlation.

Statistical Population and Sampling Method. The statistical population consisted

of all secondary schools teachers of the Hamadan province comprised of 8640
persons, and determined sample size was 368 subjects based on the Cochran
formula.The sampling method was done using proportional stratified random
sampling.

Tools and Methods of Data Collection. Library was used for collecting data. Then,
data was collected from three questionnaires with items: transformational leadership
questionnaire of Bass and Avolio (1995), questionnaire of job satisfaction of
Brayfield & Rothe (1951), and organizational innovation questionnaire of Ettlie and
O'Keefe (1982). For appointment of validity questionnaires, the content-related
Transformational Leadership, Job Satisfaction, and … 87

validity method and of viewpoints professors of educational administration in

university and education specialists was used. Measurement of reliability
questionnaires, used Cronbach's Alpha coefficient; and estimated 0.94, 0.84 and
0.78 respectively.

Analysis of Data. Analysis of data used from descriptive statistics methods

including: table, mean and standard deviation; and inferential statistics procedures
like: Kolmogorov-Smironov test, one-sample t-test, Pearson correlation coefficient
and multiple regression analysis.

Kolmogorov-Smironov Test. For the normality of the data, Kolmogorov-Smironov

test is used. According to, the error level calculated for all variables is more than
0.05. Therefore, these variables are normally distributed, and parametric test can be
used to analyze the research questions and hypotheses.

5. Results and Discussion

Question1. How is the transformational leadership in between secondary schools
managersof the Hamadan province?

Table 1.One-Sample T-Test for measure variables situation

The findings of table 1 showed that One-Sample T-Test is significant, and scale
of transformational leadership variablein between secondary schools managers of
the Hamadan province is above average surface (t=53.06, p<.001, df=367).
Question 2. How is the job satisfaction in between secondary schools teachers of the
Hamadan province?
The results of table 1 indicated that One-Sample T-Test is significant, and rate of
job satisfaction in between secondary schools teachers of the Hamadan province is
above average surface (t=26.22, p<.001, df=367).
Question 3. How is the organizational innovationin secondary schools of the
Hamadan province?
The conclusions of table 1 suggested thatOne-Sample T-Test is significant, and
rate of organizational innovationin secondary schools of the Hamadan province
isabove average surface (t=30.26, p<.001, df=367).

Hypothesis 1. There is the significant relationship between transformational

leadership, and its dimensions with job satisfaction, in secondary schools of the
Hamadan province.
88 International Journal of Management Perspective

Table 2. Pearson correlation coefficient between research variables

The outcomes table 2 showed that there is a significant positive relationship

between transformational leadership with job satisfaction in secondary schools of
the Hamadan province(r =0.271, p<.01, N=68). In addition, correlation between
dimensions of idealized influence, inspirational motivation, intellectual
stimulation, and individual consideration with job satisfaction were significant
at.01 level. Accordingly, the first hypothesis is supported by research.

Hypothesis 2. There is the significant relationship between transformational

leadership, and its dimensions with organizational innovation in secondary schools
of the Hamadan province.
The results of table 2 demonstrated that transformational leadershipwith
organizational innovationare positively correlated (r=.336, p<.01, N = 368).
Moreover, correlation coefficient between factors of transformational leadershipwith
organizational innovation, were significant. Therefore, the second hypothesis is
confirmed.

Hypothesis 3. Dimensions of transformational leadership could predict job

satisfaction in secondary schools of the Hamadan province.
Table 3. Multiple regression analysis of transformational leadershipon job satisfaction

Based on the data in Table 3, amount F is (F = 28.92,p<.001). Therefore, F is

significant, and can be used of regression analysis. Measurement the statistical
independence of the errors was used of the Durbin -Watson Test, the value is 1.941.
Therefore, we can conclude that there is no evidence of auto correlation in the
errors. Beta coefficient is significant in component of individual consideration
(p<.01). Thus, factor of individual considerationis most effective in predicting job
motivation. Then, the prediction model can be demonstrated as follows:
Transformational Leadership, Job Satisfaction, and … 89

Equation 1: Y = 2.653 + 0.271 X1

Thus, the third hypothesis, is confirmed.

Hypothesis 4. Dimensions of transformational leadership could predict

organizational innovationin secondary schools of the Hamadan province.

Table 4. Multiple regression analysis of transformational leadershipon organizational innovation

According to information in Table 4, value F is (F = 23.14, p<.001). Then F is

significant, and can be used of regression analysis. In addition, the Durbin -Watson
Test showed that there is no autocorrelation in the errors. Betacoefficient is
significant in factors of individual consideration and idealized influence (p<.01).
Thereupon, dimensions of individual consideration and idealized influencemost
important predictor of organizational innovation. Based on this, can prediction
model representas follows:

Equation 2: Y = 2.321 + 0.216 X1+ 0.158 X2

Therefore, the fourth hypothesis of research is approved.

6. Conclusions and Future Works

The findingof first, second and third question shows that situation of the
transformational leadership style, job satisfaction, and organizational innovation in
among managers and teachers of secondary schools of the Hamadan provinceis
above average. In fact, managers and teachers of secondary schoolsof the Hamadan
province have compatible with components of transformational leadership, job
satisfaction, and organizational innovation.
The results of the first hypothesis indicated that there is a significant positive
relationship between transformational leadership and its dimensions (idealized
influence, inspirational motivation, intellectual stimulation, and individual
consideration) with job satisfaction in secondary schools of the Hamadan province.
This result correspond to the findings of Long, Wan, Kowang & Heng (2014);
Cifuentes (2013); Maharani & Troena (2013); Paulienė (2012); Balyer, 2012; Voon,
Lo, Ngui & Ayob (2011); Riaz & Haider (2010); Bass & Riggio (2008); Awamleh
(2005); Walumbwa, Wang, Lawler, and Shi (2004); Avolio & Bass (2004).
The results of the second hypothesis revealed that there is a significant positive
relationship between transformational leadership and it's characteristics with
organizational innovation. This result agree to the findings of Radzi et al (2013);
90 International Journal of Management Perspective

Noruzy et al (2013); Gumusluoglu and Ilsev (2009); Khan, Rehman & Fatima
(2009); Bass & Riggio (2008); de Jong & Den Hartog (2007); Jung, Chow, & Wu
(2003).
Organizational effectiveness and performance of schools depend upon the job
satisfaction of their principals and teachers, because expand the academic
achievement. Transformational leadership approach, enhance interpersonal
communications between principals and teachers. It is a way to create higher level of
job satisfaction of teachers. Transformational leaders also help teachers to become
more creative, innovative and bring new ideas, thoughts, and teaching methods,
which allow the schools to grow better educational functions, and adapt itself to the
changing and challenges external environment.
The outcomes of third hypothesis of the study detected that the factor of
individual consideration is most effective in predicting job satisfaction. Furthermore,
results of fourth hypothesis showed that individual consideration and idealized
influence most important predictor of organizational innovation.
Manager of secondary schools of the Hamadan province utilize transformational
leadership style and especially factor of individual consideration, andcan enhance
teachers’ job satisfaction. The principals pay attention to requirements and demands
of teachers for students’ improvement and achievement. In fact, schools
administrators for achievement and increase of efficiency, effectiveness, and job
satisfaction, use of reciprocal communications and interactions, creating learning
opportunities during teaching, identification teachers’ individual differences, and
evaluation to special treatments of teachers.
Principals can improve organizational innovationby acceptance and increased
transformational leadership at schools. The secondary schools managers of the
Hamadan province using transformational leadership and chiefly factors of
individual consideration and idealized influence, and can facilitate teachers’
organizational innovation. Accordingly, administrators both attend to needs and
values of teachers, and emphasize on new ideas, new thoughts, new opinions, new
teaching methods, and new educational strategies. Principals for improvement of
organizational innovation in schools should provide trust, commitment and respect
climate among teachers, present high moral and ethical standards, consider teachers’
professional needs, emphasize on risk-taking in areas of learning and teaching, focus
on teachers’ problems, and offer honorable role models for teachers.

Recommendations
1. School administration candidates should learnstrategies of transformational
leaders during their in-service training courses.
2. Managers and principals of secondary schools have to create tow-way respect and
trustamong teachers.
3. Transformational leadership in schools should assess and managers should
become aware of what is needed to obtain positive results from teachers and
students in order to improve performance and academic achievement.
4. Principals should be encouraged to promote empowerment and to use less rigid
structures for their teachers, to prevent depersonalization, job stress, and work
depression.
Transformational Leadership, Job Satisfaction, and … 91

5. Principals should stimulate their teachers by provocation, participatory decision-

making process, andoffer proper rewards. They should understand that this
mechanism significantly enhances their teachers’innovation. In addition, they should
encourage teachers to engage in transformational leadership behaviors in order to
bring and to increase organizational innovation.

Suggestions for Future Research. According to present investigation results, we

can propose the following topics for future research:
1. Future researches could accomplish using other factors such as changes in
educational and teaching standards and how they impact on teacher’ job satisfaction,
and organizational innovation.
2. Future researches could accomplish using instruments to determine teacher
perceptions of building district leadership styles.
3. Future researches could accomplish using qualitative measures with principals
and teachers.

Research Limits
1. The study is limited to the schools environment and cannot be generalized to a
more diverse population such as university or other educational institutions.
2. The study is limited to the lack of investigators ability in control of environmental
variety variables at secondary schools of the Hamadan province.
3. The study is limitedto participants may be influenced by their linguistic, cultural,
and/or political perspectives.
92 International Journal of Management Perspective

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