The Effect of Transactional and Transformational Leadership Styles on the Organizational Commitment and Job Satisfaction of Customer Contact Personnel

By Emery, Charles R.; Barker, Katherine J. | Journal of Organizational Culture, Communications and Conflict, January 2007 | Go to article overview

The Effect of Transactional and Transformational Leadership Styles on the Organizational Commitment and Job Satisfaction of Customer Contact Personnel


Emery, Charles R., Barker, Katherine J., Journal of Organizational Culture, Communications and Conflict


ABSTRACT

Customer satisfaction depends, to a large extent, on the attitude of customer contact personnel. This study examines the effect of transactional and transformational leadership on the organizational commitment and job satisfaction of customer contact personnel in banking and food store organizations. The results indicate that the transformational factors of charisma, intellectual stimulation, and individual consideration are more highly correlated with job satisfaction and organizational commitment than the transactional factors of contingency reward and management-by-exception. Also, leader charisma, by itself, is an excellent predictor of employee attitude. As such, this factor appears to have value in leader selection and training programs within the service sector.

INTRODUCTION

Ever increasing competition has driven companies to focus on customer satisfaction. A major determinant of customer satisfaction within the service industry is the attitude of customer contact personnel (Heskett et al., 1990; Parasuraman et al., 1991). This relationship is succinctly summarized by John Smith, former CEO of Marriott Corporation, by the phrase, "you can't have happy customers served by unhappy employees" (Heskett, et al., 1997). Similarly, Heskett (1987) suggests the following sequential relationship to describe successful service firms: "great employee satisfaction begets high employee motivation begets high level of service quality compared with the level the customer expects begets high customer satisfaction begets increased sales volume." Along the same line, Schneider & Bowen (1985a) and Marshall (2001) report that service cultures with the highest organizational commitment and lowest employee turnover consistently report the highest levels of customer satisfaction. Further, Bowen & Schneider (1988) noted that a high percentage of the time when customers report unfavorable views of service quality, they also report having servers with bad attitudes or overhearing employees complain about their jobs and surroundings.

A major determinant of an employee's attitude is his/her perception of their immediate supervisor (Yammarino & Dubinsky, 1992). As such, it seems reasonable to assume that some styles of leadership may be more effective than others at gaining the commitment of customer contact personnel. Heretofore, the vast majority of research on leadership, as an antecedent of employee performance, has been on the effect of task-oriented or people-oriented leadership styles. The purpose of this study is to examine the effect of transactional and transformational leadership styles on the performance (job satisfaction, organizational commitment) of customer contact personnel.

THEORETICAL ISSUES AND HYPOTHESES

The discussion of theoretical issues is divided into two sections. First, we will review some research on the relationship between two surrogates of employee attitude (i.e., organizational commitment and job satisfaction) and customer satisfaction. Second, the dimensions of transformational and transactional leadership are defined and examined in terms of their effect on employee attitude. Subsequently, hypotheses are developed to examine whether transformational leadership or transactional leadership is more correlated with a positive employee attitude.

Employee Attitude and Customer Satisfaction

Two of the more popularly researched components of employee attitude are organizational commitment and job satisfaction (Porter et al., 1974; Kanungo, 1982). One study found that organizational commitment reflects an employee's identification and involvement with a particular organization. More specifically, it embraces three dimensions: "(a) a strong belief in and acceptance of the organization's goals and values; (b) a willingness to exert considerable effort on behalf of the organization; and (c) a strong desire to maintain membership in the organization" (Mowday et al. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

The Effect of Transactional and Transformational Leadership Styles on the Organizational Commitment and Job Satisfaction of Customer Contact Personnel
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.