The Impact of Transformational and Transactional Leadership to Subordinates' Job Satisfaction, Organizational Commitment Affect to Team Effectiveness

Abstract

This study focus on transformational and transactional leadership style of the leaders in the thirteen autonomous universities in Thailand. According to the government policy, all public universities in Thailand must become autonomous management by itself support all activities. Therefore, the leaders are important person who responsible for success or failure of organization. They should be changing their style of working to respond to organizational environment for survival and growth. The purpose of study is to explore the effect of transformational and transactional leadership behavior of leader to subordinates job satisfaction, organizational commitment that affect to team effectiveness. The result showed the relationship between dependent and independent variables characteristic, direct and indirect affect of transformational and transactional leadership cs to subordinate’s job satisfaction, organizational commitment that impact to team effectiveness.

The full range leadership models of transformational and transactional leadership style had been used as a theoretical framework of study. The MLQ-5X questionnaire was used to measure the characteristics of the two groups level namely, organization and subordinates level. The statistical technique consist of structural equation model (SEM) by software AMOS version 8 were used. multi-level analyses of structural equation model of individual and organization level were investigated. The result of individual level found that subordinates’ job satisfaction had higher direct effects from transactional leadership than transformational leadership. All variables had significant positive effects to team effectiveness. Subordinates’ job satisfaction and organizational commitment found high significant relationship affect to team effectiveness. Organizational commitment had higher direct effects from transactional than transformational leadership.

For implementation, in organization level found different result from individual level. Transformational leadership found higher significant relationship to subordinate’s job satisfaction and lower relationship to organizational commitment than individual level. Transformational leadership had direct effect and high relationship to team effectiveness. Transactional leadership found lower effect and less relationship to team effectiveness than transformational leadership.

Keywords: transformational leadership, transactional leadership, subordinates’ job satisfaction, organizational commitment, team effectiveness