The economic order of the world in the 21st century forces us to engage in limitless competitions of the globalize market without border. Chinese companies are busy promoting adaptability and creativity of their organizations to survive fierce competi...
The economic order of the world in the 21st century forces us to engage in limitless competitions of the globalize market without border. Chinese companies are busy promoting adaptability and creativity of their organizations to survive fierce competitions with multinational enterprises all over the world. Seniors and subordinates of Chinese companies usually put great weight on their own autonomy and responsibility under the spirit of co-existence and -prosperity as they firmly believe that an organization without leadership can not exist in the structure of global competition. Theoretical approaches toward leadership began there with the trait theory of leadership, having since developed through the theory of action in search for leadership to the contingency theory with a view to comply leadership with the situation an organization is placed in. The recent studies on leadership, however, need to take the new path of paradigm to adapt to today's rapid changes of environment.
The objectives of this paper are thus, first, to investigate empirically the effects of leadership by type on job satisfaction and involvement as organizational performances and, second, to explore mediation roles of the psychological empowerment that has influence on organizational achievements.
In conducting this study to find effects of the leadership on the organizational performance, types of the leadership are set forth as independent variables while the organizational achievements are considered to be dependent variables from the standpoint of companies in Shandong areas, China. The psychological empowerment is assumed as a parameter in a try to determine its relationship with types of the leadership and organizational performances.
The empirical findings of this study could be summed up as follows:
Hypothesis I-1: When effects of the transactional leadership on the organizational performance are examined on the condition that demographic factors are controlled, the management by exception of the transactional leadership only is found to have positive effects on the job satisfaction;
Hypothesis Ⅰ-2: When effects of the transformational leadership on the organizational performance are examined on the condition that demographic factors are controlled, it is revealed that charisma, intellectual stimulus and personal concern of the transformational leadership have positive effects on the job satisfaction with statistical significance;
Hypothesis Ⅰ-3: Viewed from the impacts of the transformational leadership by type on the organizational performance, every type of the leadership turns out to have influence with statistical significance if demographic factors are controlled;
Hypothesis Ⅱ-1: From examining effects of the transactional leadership on sub-variables of the psychological empowerment, it becomes evident that the management by significance, conditional compensation and exception results in positive influence;
Hypothesis Ⅱ-2: Based on the analysis into effects of the transformational leadership on the psychological empowerment, it is made clear that, if demographic variables are controlled, charisma and personal concern exercise positive influence upon significance but encouragement has negative influence while intellectual stimulus exerts no influence;
Hypothesis Ⅱ-3: Asked if the transformational leadership may have more influence on the psychological empowerment than the transactional leadership does, it is found that both leaderships have significantly positive effects as far as demographic variables are controlled;
Hypothesis Ⅲ-1: The assumption that the psychological empowerment may affect the job satisfaction as an organizational performance is selected since it is verified to have significantly positive affection for sub-variables if demographic variables are controlled. The rest ones are excluded as they are without significance;
Hypothesis Ⅳ-1: From verification as to if the psychological empowerment can play a mediation role in the relationship between the transactional leadership and the organizational performance, the conditional compensation and management by exception are shown to have less influence in the 3rd stage of the standardized regression analysis than in the 2nd stage when the psychological empowerment is controlled as a sub-factor of the transactional leadership, an independent variable;
Hypothesis Ⅳ-2: When the transformational leadership as an independent variable of the job satisfaction controls the psychological empowerment as a parameter, charisma, intellectual stimulus, personal concern and encouragement are found to have less influence in the 3rd stage of the standardized regression analysis than in the 2nd stage; and
Hypothesis Ⅳ-3: In verifying the assumption that the psychological empowerment may play better mediation role than the transactional leadership in the relationship between the transformational leadership and the organizational performance, the transactional/transformational leaderships turn out to play a partial mediation role as independent variables since they have less direct effects on the organizational performance than overall effects if effects of the psychological empowerment are controlled.