scholarly journals The Impact of Transformational Leadership on Job Satisfaction and Employee Turnover Intentions: A Conceptual Review

2021 ◽  
Vol 124 ◽  
pp. 08005
Author(s):  
Evelyn Gan ◽  
Mung Ling Voon

All employees deserve a decent working environment in order to be productive in their work. High employee turnover has adverse effects on economic growth as companies incur additional costs and experience drop in productivity. Hence, identifying the factors that reduce employee turnover intention is in line with Sustainable Development Goals. This review paper aims to improve our understanding of the relationship between transformational leadership style and job satisfaction, and examines their impact on reducing employee turnover intention. The literature review has proved that transformational leadership and job satisfaction greatly influence an employee’s decision to leave or stay with his or her organisation. Based on the literature, this paper also provides recommendations for future research areas that would provide valuable information in helping organisations reduce employee turnover intention, and ultimately employee turnover.

Author(s):  
Michael Asiedu Gyensare ◽  
Olivia Anku-Tsede ◽  
Mohammed-Aminu Sanda ◽  
Christopher Adjei Okpoti

Purpose – The purpose of this paper is to investigate the impact of transformational leadership on employee turnover intention through the mediating role of affective commitment. Design/methodology/approach – The study examines conceptual relationships in the Ghanaian context, based on structural equation modelling with maximum likelihood estimation, using sample employees from the private sector organizations. In addition, the mediation analysis is conducted with Sobel’s test and 95 per cent CI bootstrap analysis. Findings – The study shows that affective commitment would decline workers’ quitting intention and serves to promote a degree of trust and willingness to follow their leaders’ philosophy, ideology, vision and guidance in the organization. Hence, affective commitment fully mediates the relationship between transformational leadership and employee turnover intention. Practical implications – To help lessen employees quitting intentions, both middle and top-level managers should endeavour to create an atmosphere of trust, admiration, loyalty and respect for their employees. Originality/value – Overall it is shown that affective commitment was the mechanism through which transformational leadership influences employees’ turnover intentions in the SLCs in Ghana.


2016 ◽  
Vol 32 (4) ◽  
pp. 1145-1156 ◽  
Author(s):  
Jie Li ◽  
Qiao Zhuan Liang ◽  
Zhen Zhen Zhang

As a bottom-up leadership style, humble leadership has attracted increasing attention from scholars in recent years. But its effectiveness and mechanism still lack rigorous empirical study. In this study, we investigate the mechanism and boundary condition by which humble leader behavior exerts influence on followers’ turnover intention. Two-wave data collected from 249 scientific and technological personnel in China supported our hypothesized model. We found that humble leader behavior is significantly negatively related to follower turnover intention. The relationship is further partially mediated by organizational identification, and moderated by leader expertise. Implications for theory, practice and future research are discussed. 


2021 ◽  
Vol 9 (1) ◽  
pp. 19-33
Author(s):  
Lie Gunadi ◽  
Antonius Siahaan ◽  
Ardi Adji

The phenomenon of the digitalization era has an impact on high employee turnover. On the other hand, the Covid-19 pandemic impacted a lockdown in many countries and regions which in turn, in many businesses and employees being affected (reducing costs, reducing working hours, and even laying off work relations). Taking a sample of various organizations in Indonesia, this study analyzed the factors that cause employee turnover intention (dependent variable) such as employee satisfaction (moderating variable), also remuneration & promotion, fringe benefit, working environment, and perceived external employment as independent variables.  The research study was conducted based on 219 respondents who are in various industries. The results showed that working environment and fringe benefits have a positive impact to job satisfaction, job satisfaction has a negative impact to turnover intention and perceived alternate external employment has a positive impact to turnover intention inline with the predictions on the hypothesis. Meanwhile remuneration and perceived alternate external employment didn't have a significant impact on job satisfaction, as well as working environment, remuneration & promotion, and fringe benefits to turnover intention.


2016 ◽  
Vol 13 (2) ◽  
pp. 110
Author(s):  
Anisah Uswatun Hasanah

The aim of this research is to analyze the impact time demands of work, on job satisfaction,job stress, and employee turnover intention PT. Bank Tabungan Negara (Persero) Tbk.Cabang Harapan Indah, BekasiThis study is using path analysis with SmartPLS 2.0.M3. The population that used in thestudy is all the employees of PT. Bank Tabungan Negara (Persero) Tbk. Cabang HarapanIndah, Bekasi, which are 108 respondents. The amount of the sample is determined by thecensus method of the entire employee. However the sample that has been applied into 85respondents significantly decreased into 85people.The results have shown that the time demands of work do not significantly influenceturnover intention. Furthermore the time demands of work have no significant effect on jobsatisfaction. Employee satisfaction negatively affect on turnover intention. Job satisfactionis not successfully mediating the relationship between the time demands of work andturnover intention. Time demands of work have positive influence on job stress. Job stresshas positive effect on turnover intention. Job stress has been successfully mediating therelationship between the time demands of work and turnover intention. Job stressnegatively affect with job satisfaction. Job satisfaction also has been successfullymediating the relationship between job stress and turnover intention.


2019 ◽  
Vol 8 (4) ◽  
pp. 2959-2962

Attrition is one of the biggest challenge for any industry as it comes with many demerits such as loss of productivity, incurring of various costs such as training & development, recruitment etc. According to the Compensation Trends Survey conducted by Deloitte Human Capital Consulting, the IT/ITES industries of the Indian market have faced 15% of the attrition that is higher for any industry. Thus, the companies of this industry are focusing to decrease the turnover intention in order to reduce the actual employee turnover. The aim of this research is to find out the influence that Job Satisfaction and organizational commitment have on the turnover intention on the employees. Various research suggests that organizational commitment and turnover intentions are negatively correlated. Also, the studies suggest that Job Satisfaction and employee turnover intentions have a negative relationship. This study has been conducted to examine the relationship between Job Satisfaction, organizational commitment, and turnover intention for the IT/ITES industry employees with a special focus to BPO segment. The researchers have taken data from 500 employees of the BPO segment from 3 major cities of Gujarat i.e. Ahmedabad, Gandhinagar and Baroda. The researchers have used Multiple regression and ANOVA to examine the influence of the organizational commitment & job satisfaction on the turnover intention. The result shows that higher level of organizational commitment reduced the turnover intention. This research can help the BPO organizations to formulate & implement the strong retention strategies. Also, this study provides a direction to the academicians to explore further dimensions of the research in the various industries as well as various regional backgrounds.


2015 ◽  
Vol 03 (01) ◽  
pp. 01-07
Author(s):  
Nazia Parveen ◽  

The aim of this study was to find out the impact of Transformational Leadership Style on job satisfaction and turn over intention moderated by organizational culture in the banking sector of Pakistan. Data was collected from 135 working employees of two foreign and seven local banks of Pakistan. Results indicated that transformational leadership had a positive and significant impact on job satisfaction, while turnover intention was not directly affected by transformational leadership. Results also indicated that organizational culture did not moderate the relationship between transformational leadership and job satisfaction, but the combined effect of transformational leadership and existing organizational culture reduce the turnover intention of employees in the banking sector of Pakistan.and organizational citizenship behavior, and doesn’t moderate the relationship between PCB-Affective Commitment and PCB- Job Satisfaction.


2018 ◽  
Vol 7 (3.21) ◽  
pp. 38
Author(s):  
Azlinzuraini Ahmad ◽  
Ahmad Munir Mohd. Salleh ◽  
Khatijah Omar ◽  
Kamaazura Abu Bakar ◽  
Karimah Abd. Wahab Sha’arani

In the contemporary hotel industry of Terengganu where tourists’ arrivals and competition among firms are encouraging, employees and hotel community are expected to work and upgrade their services which is up to the customers’ expectation. In order to improve customer service, effective leaders could build a culture of trust within their organization and constantly motivating employees to better handle job stress. The employees in hotel industry who need to deal with long working hours, trouble customer, and troubled relationship with supervisor could potentially develop job stress at the workplace. Responding to this issue that requires precise understanding, the objectives of this study are to examine which style of leadership (transformational, transactional and laissez faire) that have significant relationship towards employee turnover intention and to determine stress as a mediator role between leadership and employee turnover intention. A sample of 225 hotel employees from all level of positions of Terengganu hotels was gathered and results of the study showed several significant findings. The most important finding is the significant negative influences of transactional leadership style on employee turnover intention has been found and partial mediation was established when job stress was included. The findings therefore will help to address that the effect of transactional leadership (TL) on employee turnover is increased upon the addition of stress as mediator where subsequently, effective leader could negatively reduce stress and employee turnover intention in hotel industry. 


2019 ◽  
Vol 7 (2) ◽  
pp. 102
Author(s):  
Nassrulloh Nassrulloh ◽  
Titik Ambarwati ◽  
Mursidi Mursidi

This study aims to describe the impact of job insecurity and job satisfactionon employee turnover intention at ceramic factory in Mojosari and to figureout the most dominant variable that influences employee performance. Thesample consisted of 68 employees of production department selected byusing Proportionate Stratified Random Sampling technique. In order to pointout the level of job insecurity, job satisfaction, and employee turnoverintention, this study used Likert Scale analysis. Further, Multiple LinearRegression analysis was used to figure out the impact of job insecurity andjob satisfaction on employee turnover intention. The findings indicated thatemployee turnover intention was very high, job insecurity was high, and jobsatisfaction was moderate. Job insecurity did not influence employeeturnover intention with the value of t- arithmetic of 1.051 that is lower than ttableof 1.998. Meanwhile, job satisfaction negatively and significantlyinfluenced employee turnover intention with t-count of -3.108. The result ofSimple Linear Regression analysis, job insecurity and job satisfactionsignificantly influenced employee turnover intention. Moreover, bycomparing the regression coefficients, the most dominant variableinfluencing employee turnover intention was job satisfaction.


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