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1 Does Transformational Leadership Influence Employee Behavioral Outcomes (i.e., Task Performance) with Mediating Effects of Psychological Empowerment, Intrinsic Motivation and Job Satisfaction? ABSTRACT Drawing upon theories of transformational leadership and psychological empowerment, this research tested several hypotheses associating transformational leadership with task performance via intervening variable, i.e., psychological empowerment, intrinsic motivation and job satisfaction. Using survey data from administrative and professional employees in China, we found that, as anticipated, transformational leadership positively influenced task performance. Furthermore, analyses discovered that the relationship between transformational leadership and employee’s task performance strongly mediated through psychological empowerment, intrinsic motivation and job satisfaction. Keywords: transformational leadership, task performance, psychological empowerment, intrinsic motivation, job satisfaction.

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Does Transformational Leadership Influence Employee Behavioral Outcomes (i.e., Task

Performance) with Mediating Effects of Psychological Empowerment,

Intrinsic Motivation and Job Satisfaction?

ABSTRACT

Drawing upon theories of transformational leadership and psychological empowerment,

this research tested several hypotheses associating transformational leadership with task

performance via intervening variable, i.e., psychological empowerment, intrinsic motivation and

job satisfaction. Using survey data from administrative and professional employees in China, we

found that, as anticipated, transformational leadership positively influenced task performance.

Furthermore, analyses discovered that the relationship between transformational leadership and

employee’s task performance strongly mediated through psychological empowerment, intrinsic

motivation and job satisfaction.

Keywords: transformational leadership, task performance, psychological empowerment, intrinsic

motivation, job satisfaction.

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INTRODUCTION

Leadership has become more imperative ever than before only because of rapid changes in

work environments (Krishnan, 2005). Extensive literature has emerged on transformational

leadership in past two decades (Bass, 1998) to understand leader’s effectiveness (Piccolo &

Colquitt, 2006), and such leadership style is crucial for developing appropriate capabilities within

an organization and ascertaining new opportunities in market (Krishnan, 2005). Burns (1978) and

Bass (1985) reveal that transformational leader’s behavior motivates its followers to be rational

and stimulates them to be creative and persuades their out-of-box thinking. Enormous evidences

bring together from prior researches recommends that transformational leadership at individual

and organizational level is positively related to employee work attitudes as well as behavioral

outcomes (Dumdum, Lowe, & Avolio, 2002; Lowe, Kroeck, & Sivasubramaniam, 1996; Piccolo

& Colquitt, 2006). Though, researchers have engaged in taking initiatives to study the processes

and mechanisms through which the behavior of transformational leaders stimulate its follower’s

performance and motivation (Avolio, Zhu, Koh, & Bhatia, 2004; Bono & Judge, 2003; Kark &

Shamir, 2002; Lord, Brown, & Freiberg, 1999; Yukl, 1989).

A fundamental view of transformational leadership approach is to express effects towards

leader through follower’s responses (Piccolo & Colquitt, 2006). Researchers (e.g., Kark, Shamir,

& Chen, 2003; Pillai, Schriesheim, & Williams, 1999; Podsakoff, MacKenzie, Moorman, & Fetter,

1990) in their initial studies of transformational leadership highlight the mediating role of

follower’s work attitudes (e.g., personal identification, satisfaction, trust, perceived fairness)

towards leaders. Moreover, some of the studies have emphasized on transformational leadership

effects by elucidating the follower’s feelings about themselves or their group footing on self-

efficacy or group effectiveness (Bono & Judge, 2003; Shamir, House, & Arthur, 1993; Sosik,

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Avolio, & Kahai, 1997). Although, a number of researches demonstrate a positive relationship

between transformational leadership and follower’s behavior (Fuller, Patterson, Hester, &

Stringer, 1996; Judge & Piccolo, 2004; Lowe et al., 1996). There are enough reasons (explained

below) to examine the effect of transformational leadership on task performance of the employee

(Piccolo & Colquitt, 2006). Therefore, the principal reason behind this examination is to observe

the relationship of transformational leadership on employees’ task performance through important

intervening variables.

While constructing the model of this study, which links transformational leadership and

employees’ task performance, we additionally draw on the psychological empowerment theory

(Spreitzer, 1995) and employee task performance literature to theorize three mediating processes

and mechanisms to enlighten the relationship of transformational leaders on employee task

performance: psychological empowerment, intrinsic motivation and job satisfaction. We take

psychological empowerment as a first mechanism, which explores the extent through which

transformational leadership has have effect on psychological empowerment to finally influence

employee task performance. Spreitzer (1995) delineates psychological empowerment having four

sub-dimensions i.e., meaning, competence, self-determination and impact as a psychological state.

Spreitzer (1995) argued that psychological empowerment, in turn, significantly influence

employee’s managerial task performance by affecting intrinsic motivation of the employees.

Moreover, researchers have linked intrinsic motivation and employee task performance through

psychological empowerment area (Thomas & Velthouse, 1990). This relationship is significant

because the employees, who are intrinsically motivated get satisfaction by accomplishing their

tasks (Staw, 1977). Intrinsic motivation is the degree to which an employee is interested and

involved in a task (Utman, 1997). Based on the above arguments, we theorize intrinsic motivation

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as a second mechanism in our study, which links transformational leadership and employee task

performance; we posit that intrinsic motivation connects psychological empowerment and

employee task performance.

From decades, job satisfaction has been considered as determining factor of job

performance (Miao, 2011). Locke (1976) elucidates job satisfaction as an internal state of the

employee, which is based on considering the job as well as job related experiences to the extent of

favorable or unfavorable. Seibert, Wang, and Courtright (2011), in a meta-analysis, clarified that

employees having sense of psychological empowerment, demonstrate higher degree of job

satisfaction. Considerable theoretical support have been found between job satisfaction and job

performance’s relationship but empirical researches have been revealed the mixed results (Miao,

2011). Moreover, Edwards, Bell, Arthur Jr, and Decuir (2008), while doing a research on

manufacturing plant, disclosed a weaker relationship (r=.19) between job satisfaction and task

performance. Based upon above arguments, we further examine the influence of job satisfaction

on task performance of the employees, so that in present study, we posit job satisfaction as a third

mediating variable, which connects psychological empowerment and task performance.

Overall, the objective behind our study is to create model by theoretically as well as empirically

associating transformational leadership theory, psychological empowerment theory and related

task performance literature to explore the all-inclusive understanding of the transformational

leadership phenomenon, which finally relates to task performance of the employees.

THEORY AND HYPOTHESIS

Theory and hypothesis sections demonstrates the research model of this study in detail by

first elucidating the phenomenon of transformational leadership, which ultimately relates to the

employee task performance. Further, we explore how transformational leadership effects

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psychological empowerment. We then investigate how psychological empowerment stimulates

intrinsic motivation and job satisfaction. Finally, we explore how intrinsic motivation and job

satisfaction have impact on employee’s task performance. The overall model of our study has been

depicted in Figure 1.

<Figure 1>

Elucidating the effects of Transformational Leadership

Leadership is considered as an important characteristic of the work setting for employees

in any organization (Gong, Huang, & Farh, 2009; Oldham & Cummings, 1996; Scott & Bruce,

1994). Burns (1978) has presented transformational leadership theory. Moreover, Bass (1985) has

advanced this theory by explaining the four dimensions of behavior endorsed by a leader.

Individualized consideration refers to which leaders act with their followers as mentor, listen to

their concerns and support their needs. Inspirational motivation is energizing followers by

expressing visions that are alluring to them. Intellectual stimulation is to implement unique and

novel tactics towards problems and challenge the status quo. Idealized influence or charisma refers

to which leaders behave with their followers in a charismatic way to identify with them.

Many researchers have taken transformational leadership beneficial for employees’ job behaviors,

for example, Piccolo and Colquitt (2006) supports that transformational leadership is capable of

enhancing task performance of its followers. In a meta-analysis (Piccolo & Colquitt, 2006), it has

proven that transformational leadership has strong positive association with its followers’ task

performance. Furthermore, in two more separate meta-analysis studies (Fuller et al., 1996; Lowe

et al., 1996), researchers have argued that transformational leadership and task performance have

consistent and strong correlation between them.

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Transformational leadership dimensions inspire employees to take initiatives and take

creative solutions of the complex problems by encouraging out-of-box thinking (Bass, 1985). As

a result, followers enact in such a way that ultimately it enhance their task performance (Piccolo

& Colquitt, 2006). Furthermore, transformational leaders concentrate on collective vision by

persuading their followers to forgo their personal benefits and interests as well. In consequence of

the above arguments, followers are more willing to collaborate to make a constructive and

affirmative contribution to the work setting by associating their own success with organizations’

and identifying with organizations’ visions, goals and values (Podsakoff et al., 1990). Therefore,

we posit:

Hypothesis 1. Transformational leadership has a positive impact on employees’ task

performance.

Transformational Leadership and Psychological Empowerment

Zhang and Bartol (2010) conceptualized psychological empowerment as a set of cognitions

or experienced psychological state. Psychological empowerment defined by Conger and Kanungo

(1988) as a process of employee’s feeling of self-efficacy “through the identification of conditions

that foster powerlessness and through their removal by both formal organizational practices and

informal techniques of providing efficacy information” (1988, p. 474). Additionally, psychological

empowerment defined as an intrinsic motivation in employees by identifying four task assessments

i.e., meaningfulness, competence, choice and impact (Thomas & Velthouse, 1990). Spreitzer

(1995) synthesized the work of Conger and Kanungo (1988) and Thomas and Velthouse (1990) to

define psychological empowerment as a psychological state, which has four measurements:

meaning i.e., having sense of feelings that individual’s work has significant importance,

competence i.e., belief in one’s capability to perform his/her job effectively, self-determination

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i.e., autonomy to elect how to initiate and carry out tasks and impact i.e., perception of having

influence in work outcomes.

Transformational leaders motivate and empower followers by transforming their needs,

objectives, individualities, values and preferences, and therefore ultimately realize them the

importance, meaning and purpose of their work (Lowe et al., 1996). Dubinsky, Yammarino,

Jolson, and Spangler (1995) elucidated that transformational leaders identify the significance of

the assigned task or work to their followers, facilitate them to understand and escalate their efforts

towards assigned task or work. Transformational leaders stimulate followers’ self-efficacy through

continuous encouragement, feedback mentoring and coaching to perform their efficiently (Shamir

et al., 1993). Transformational leaders establish a sense of self-determination in their followers

and emphasis on innovative and creative ways to perform assigned task (Bass, 1985). Sun, Zhang,

Qi, and Chen (2012) found in their cross level study that transformational leaders transform their

employees through psychological empowerment and proved that transformational leadership has

positive impact on psychological empowerment. Therefore, we posit:

Hypothesis 2. Transformational leadership and psychological empowerment have positive

correlation between them.

Psychological Empowerment and Intrinsic Motivation

Utman (1997) elucidated intrinsic motivation as an inner-directed and self-motivated

individual who is involved and interested in a task. Researcher found a positive relationship

between psychological empowerment and intrinsic motivation (Zhang & Bartol, 2010). As

(Thomas & Velthouse), suggested psychological empowerment is “presumed to be a proximal

cause of intrinsic task motivation and satisfaction” (1990, p. 668). Research disclosed a positive

relationship between intrinsic motivation and feelings of self-determination (Koestner, Ryan,

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Bernieri, & Holt, 1984). Moreover, Gagné, Senecal, and Koestner (1997) also found a positive

correlation between intrinsic motivation and meaningfulness.

Hypothesis 3. Psychological empowerment has positive relationship with employees’

intrinsic motivation.

Psychological Empowerment and Job Satisfaction

Job Satisfaction is delineated as “a pleasurable or positive emotional state” that is “a

function of the perceived relationship between what one wants from a job and what one perceives

it is offering” (Locke, 1976, p. 1300). Wang and Lee (2009) found mixed empirical support while

studying the relationship of job satisfaction and empowerment dimensions. Hackman and Oldham

(1980), while explaining job characteristics model argued that employees’ psychological state

effects job satisfaction. Empowerment demonstrated the higher level of job satisfaction (Thomas

& Tymon, 1994). Researcher described a positive correlation between meaning and job

satisfaction (Spreitzer, Kizilos, & Nason, 1997). Perceived meaningfulness states to higher job

commitment (Kanter, 1983) while meaninglessness refers to job dissatisfaction (Thomas &

Velthouse, 1990).

Hypothesis 4. Psychological empowerment has positive relationship with job satisfaction.

Intrinsic Motivation, Job Satisfaction and Task performance

Employees who are intrinsically motivated promised higher concern towards task

performance (Hackman & Oldham, 1980). Intrinsically motivated employees usually work harder

to excel and purse satisfaction from completion of their assigned tasks (Staw, 1977). Kanfer and

Kanfer (1991) presented task engagement as the key element of explaining the concept of intrinsic

motivation’s performance. Unfortunately, researchers gave a little empirical testing to above

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arguments. Most of the researchers treated intrinsic motivation as a dependent variables in their

studies (Piccolo & Colquitt, 2006). Based upon the above arguments, we posit:

Hypothesis 5. Intrinsic motivation has positively correlated with employees’ task

performance.

Previous empirical studies discussing job satisfaction and task performance revealed the

mixed results. A wide range of results (i.e., r =.14 to .31) gathered while analyzing job satisfaction

and task performance’s relationship in meta-analyses (Iaffaldano & Muchinsky, 1985; Judge,

Thoresen, Bono, & Patton, 2001; Petty, McGee, & Cavender, 1984). Recently, meta-analysis

found a strong relationship between these two variables (Jung, 2001). A study of manufacturing

plant revealed a weaker relationship between job satisfaction and task performance (Edwards et

al., 2008). Thus, satisfaction-performance research needs further investigation to produce strong

findings. Based on previous arguments, we posit:

Hypothesis 6. Job satisfaction has positively correlated with employees’ task performance.

METHODS

Research Context and Participants

Forty-three private and public organizations headquartered in Anhui province of People’s

Republic of China (PRC) participated in this research. A total of 385 employees and supervisors

participated in this study, with the response rate of 44 percent. Data collected from both leader and

a subordinate of each leader in this research, as many of the researchers (e.g., Singer, 1985; Tucker,

Bass, & Daniel, 1992; Waldman, Bass, & Einstein, 1987; Yammarino & Bass, 1990) employed

this approach in their studies.

As, table 1 explains the sample demographics, the sample of this research comprises of 266

(69%) male and 119 (31%) female and 43.6 percent participants were engaged in public

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organizations while 56.4 percent participants were doing job in private organizations. The

qualification of the participants consists of 6.8% (Intermediate), 26% (Graduate), 46.5% (Masters),

17.1% (M.Phill), 2.9% (Ph.d) and 0.8% (Post Ph.d). The age of 55.1% participants lies between

18 to 25 years and the income of 48.1% participants is less than 10,000 RMB.

<Table 1>

Procedure

We communicated to human resource (HR) department of each company to support the

study, to encourage participation and to acquire their help in distributing hard copies of

questionnaire. Data were collected from both supervisors, stated to as leaders and followers, to

reduce the potential effects of common bias methods. All the followers questioned to rate the level

of transformational leadership of their respective leaders and their own level of psychological

empowerment, intrinsic motivation and their level of satisfaction at workplace. Supervisors were

asked to rate job performance of their respective followers. Every supervisor evaluated the job

performance of his/her five followers.

Measures

The entire questionnaire was translated into Chinese from English. To guarantee

uniformity of the measures in Chinese and English, we used standard translation and back-

translation procedure, which was suggested by Brislin (1980). Unless otherwise indicated, all the

variables were measured by participant responses to questions on a five-point Likert-type scale

ranging from “strongly disagree” to “strongly agree.”

Transformational Leadership. We used nine-item scale to measure transformational leadership.

This scale was manifested by adopting seven items from Carless, Wearing, and Mann (2000). The

remaining two items were established by Overstreet (2012) to increase the items for

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transformational leadership to nine-item scale. The sample items of this scale included, “My

supervisor communicates a clear and positive vision of the future”’, “My supervisor is clear about

his/her values”, and “My supervisor encourages thinking about problems in new ways and

questions assumptions”.

Psychological Empowerment. In this study, followers assessed their psychological empowerment

with a validated twelve-item scale developed by Spreitzer (1995), which is was manifested in four

subscales of 3 items each: meaning, competence, self-determination and impact. A sample

measures from each subscales included: (meaning) “My work activities are personally meaningful

to me”, (competence) “I am self-assured about my capabilities to perform my work activities”,

(self-determination) “I can decide on my own how to go about doing my work” and (impact) “I

have a great deal of control over what happens in my department.”

Intrinsic Motivation. The scale to measure intrinsic motivation was adopted from Hackman and

Oldham (1974). Sample items are, “I feel a great sense of personal satisfaction when I do this job

well” and “My opinion of myself goes up when I do this job well.”

Job Satisfaction. To measure job satisfaction, we adopted 8-item scale which is used by

Bettencourt, Gwinner, and Meuter (2001). Sample items are, “The amount of job security you

have” and “The amount of personal growth and development you get in your job.”

Task Performance. We used seven-item scale to measure task performance, which is based on the

work of Williams and Anderson (1991). Sample items are, “Adequately completes assigned

duties” and “Performs tasks that are expected of him/her.”

DATA ANALYSIS AND RESULTS

The data analysis was conducted by using SPSS 20 and AMOS 20 software with sample

size of N=385. Table 2 represents the summary of means, descriptive statistics and correlations

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among variables of this study. Data analysis was initiated before checking for the issue of

multicollinearity. To deal with the issue of multicollinearity among variables, (Hair, 2010)

established that the problem of multicollinearity exists in the data if Pearsons r-value is greater

than 0.90. Table 1 shows that the highest correlation value among transformational leadership and

psychological empowerment i.e. 0.66 which is still less than 0.90, indicating no issue of

multicollinearity between variables. Correlation values for all of the variables in this study were

anticipated the directions. Since several of our measures are were conceptually associated and

could be expected to be correlated in a substantive way, we run an additional analysis to calculate

the discriminant validity of our constructs. We examined the fit of the structural model to predicted

paths to the measurement model. The fit of the proposed model was empirically tested to analyze

that weather it fit the data better than did competing models (Kelloway, 1998). As proposed the

five factor model showed an abdicated model fit of the data. (χ2 [857] = 3658; χ2/df = 4.29; CFI

= .94; GFI = .91; AGFI = .90; RMSEA = .07).

<Table 2>

Construct reliability and validity

To measure the distinctiveness of the scales a CFA was conducted on the scales of

transformational leadership, psychological empowerment, job satisfaction, intrinsic motivation

and task performance. Content validities must be relatively acceptable since different parts of

questionnaires were adopted from previous studies and have been reviewed by experts. To confirm

the proposed model of task performance in China, we used the reliabilities analysis to examine the

internal consistency of factors and a factor analysis to analyze the underlying relationship between

variables. Confirmatory factor analysis using AMOS was conducted on the survey data. Table III

shown the results of convergent validity, discriminant validity, composite reliability, maximum

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shared variance, average variance extracted, average shared variance and Cronbach alpha. The

values of Cα for all variables are greater than suggested level of 0.6 recommended by (Numally,

1978). In addition, the suggested criteria for CR and AVE state that a scale is considered reliable

if the value of CR is greater than 0.7 and AVE is greater than 0.5 (Bagozzi & Yi, 1988). The results

shows that all the constructs have successfully surpassed the suggested threshold and demonstrated

well in terms of convergent validity suggesting that the constructs can be used to analyze the

conceptual model (Bouwman, Carlsson, Molina-Castillo, & Walden, 2007).

<Table 3>

Structural Equation modeling

In order to analyze the relationship within the research model that used in the study,

structural equation modeling (SEM) and the AMOS 20 statistical package software was used.

Structural equation can be used to analyze that weather the model set that used in this study is

useful and to identify its fitness. The SEM includes one or more linear regression equations that

describe how the endogenous constructs depends upon the exogenous constructs. We examined

the casual structure of the integrated model. The results of the parameter estimates and the

goodness of the data are reported in table 3. Relative fit indices are used in this research, including

Normed Fit indices (NFI) and Incremental fit indices (NFI). IFI which proposed by Bollen (1990)

and is presented that it is relative unaffected by sample size 1(Bentler, 1990; Gerbing & Anderson,

1993; Hu & Bentler, 1995). The results suggested that our proposed model was a good fit for the

data and it achieved an overall good fit. We used two determiners of goodness- of fit indices, NFI

and IFI. The fit indices of (NFI= 0.91, IFI=0.92) which indicated that model was adequate.

Table 4 presented that standardized path coefficients are all significant at 0.01 levels. The

results indicated the positive significant impact of transformational leadership (TL) (β=0.16; p<

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0.01) on task performance (TP), therefore confirming hypothesis H1. The results indicated that

when TL increased by one standardized unit, TP is raised by 0.16 standardized units. Moreover,

confirming the hypothesis. The model explains 48.10% of variation in TP. Transformational

leadership (TL) (β=0.67, p<0.01) is statistically significant to psychological empowerment (PE),

thus confirming the hypothesis H2. Results indicated when TL is increased by one standardized

unit, PE is enhanced by 0.66 standardized units. Similarly, the positive significant effect of

psychological empowerment (PE) (β=0.48, p<0.01) on intrinsic motivation (IM) and also

psychological empowerment (PE) (β=0.55, p<0.01) on Job satisfaction (JS) are evident in the

results and supported the hypotheses H3 and H4. Psychological empowerment explains 24% of

the variation in intrinsic motivation and 30% of the variation in Job satisfaction. Intrinsic

motivation (IM) (β=0.40, p<0.01) and Job satisfaction (JS) (β=0.51, p<0.01) are positive

significant in determining to task performance (TP). This confirms the hypotheses H5, H6.

However, transformational leadership (TL), psychological empowerment (PE), intrinsic

motivation (IM), job satisfaction (JB) are fond significant impact on task performance (TP). The

model explains 52.10% of the variation in task performance. Altogether, the current research has

proposed six hypotheses, the whole six hypotheses are statistically evidenced from our data.

<Table 4>

<Figure 2>

DISCUSSION

This paper makes divergent contributions towards organizational research. First, the

relationship between transformational leadership and task performance are renowned and well-

documented, in this paper, we developed mechanism through which the relationship between these

two variables are further tested through serval mediating variables i.e., psychological

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empowerment, intrinsic motivation and job satisfaction. This paper result’s showed that

transformational leadership has positively correlated with employee’s task performance.

Second, this paper makes contribution by investigating and exploring the psychological

empowerment as a mediating factor between leadership and task performance. Our paper founds

congruent with previous studies results indicating to be positive association between

transformational leadership and psychological empowerment. Though, there has been a

requirement to empirically investigate the explicit relationship between leadership and

psychological empowerment. As Seibert et al. (2011), Conger and Kanungo (1988), Menon

(2001), and Spreitzer (1995) have been examined in their respective studies. Expending the

previous studies, this paper creates and tests a more complex model to get more strong findings.

Third, our paper is unique in elucidating the link of psychological empowerment with not only

intrinsic motivation, but also job satisfaction. As expected, our findings show psychological

empowerment has positive relationship with intrinsic motivation (Spreitzer, 1995). Likewise, this

paper also revealed theoretical arguments for and verified a connection between psychological

empowerment and job satisfaction. Finally, our results show the positive connections between

intrinsic motivation, job satisfaction and task performance.

Practical implications, limitations & future directions

The outcomes of this study suggest that transformational leaders foster employee’s task

performance by creating autonomous work environment in their work settings through

psychological empowerment. All in all, transformational leaders must focus on psychological

empowered climate in work setting to get higher performance of their employees. Our research

focuses on three mediating processes which links transformational leadership and subordinates’

task performance. In future, researchers might focus with important underlying mediating

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processes to investigate the relationship of transformational leadership and employees’ work

behaviors. In this study, we took psychological empowerment as a mediating factor to examine

the relationship of leadership and employees’ task performance, so future research might examine

this relationship with important underlying moderators. Moreover, our study sample is limited to

china only, so researchers might examine this relationship with cross-culture data.

Conclusion

The study incorporates the mechanism through which we demonstrate the different

perspectives of transformational leadership and employee’s task performance. Drawing upon the

transformational leadership theory and psychological empowerment theory, we introduce several

intervening variables i.e., psychological empowerment, intrinsic motivation and job satisfaction to

test the relationship of transformational leadership and task performance. The results of this study

highlight the direct and indirect (using three mediating variables) relationship between leadership

and performance.

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TABLES

Table 1 Sample demographics

Gender % Age % Qualification % Job type % Income %

Male 69 <18 years 3.6 Intermediate 6.8 Govt. Job 43.6 <10K 48.1

Female 31 18-25 55.1 Graduate 26 Private Job 56.4 10-20K 3.9

26-33 18.7 Master 46.5 20-30K 7.5

34-41 7.0 M.Phil. 17.1 30-40K 8.8

42-49 10.1 PhD 2.9 40-50K 5.2

> 50 years 5.5 Post PhD 0.8 >50K 17.1

Table 3 Reliability, Convergent validity, Discriminant validity and alpha coefficients

Variables CR AVE MSV ASV C/A Transformational leadership 0.91 0.52 0.44 0.29 0.84

Psychological empowerment

Job satisfaction

0.91

0.80

0.51

0.51

0.43

0.42

0.28

0.30

0.86

0.73

Intrinsic motivation 0.85 0.50 0.34 0.21 0.80

Task performance 0.84 0.51 0.42 0.30 0.84

Note: Threshold of reliability: CR>.70; Convergent validity: AVE> .50; Discriminant validity: AVE> MSV; CR= Composite reliability; MSV= Maximum Shared Variance; AVE= Average Variance Extracted; ASV= Average Shared Variance; C/A= Cronbach Alpha

Table 4 SEM hypothesis testing

Hypothesis Hypothesized Path Path cofficient S.E. C.R. p-value Remarks H1 TP<---TL 0.17 0.37 4.31 0.00 Supported

H2 PE<---TL 0.67 0.36 17.53 0.00 Supported

H3 IM<---PE 0.48 0.51 10.77 0.00 Supported

H4 JS<---PE 0.55 0.42 12.78 0.00 Supported

H5 TP<---IM 0.40 0.33 10.02 0.00 Supported

H6 TP<---JS 0.51 0.39 11.29 0.00 Supported

Source: Authors’ estimation

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Table 2 Descriptive statistics and correlations

Variables M S 1 2 3 4 5 6 7 8 9

1. TL 3.37 .72 - 2. PE 3.33 .81 .66** - 3. JS 2.45 .75 .56** .54** - 4. IM 3.40 .75 .35** .48** .41** - 5. TP 3.48 .88 .52** .42** .65** .58** - 6. Gender 1.31 .46 -.04 .04 -.03 .06 -.04 - 7. Age 2.81 1.27 .22** .17 -.03 -.21** .18 -.14 - 8. Qualification 4.81 1.03 .06 -.03 .20 .03 .01 .06 .20 - 9. Tenure 10. Job Type

3.34 3.15

1.38 2.41

.06 .09

.18 .12

.02 .15

.06 .09

.04 .13

.07 -.21

.06 .24

-.19** .17**

- -.29

Note: N = 345; N/A = not applicable; 1= Transformational Leadership; 2= Psychological Empowerment; 3=Job Satisfaction; 4= Intrinsic motivation; 5= Task Performance; 6=Gender; 7=Age; 8=Qualification; 9=Tenure; Job Type; *P< .05, **P<.01.

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FIGURES

Figure 1. A Proposed Model

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Figure 2. Structural Equational Modeling with Mediating Results