Track: Technology Management

Abstract

Managing today’s world is about directing in times of speedy revolution. The need to develop effective leaders is getting increasingly crucial in all organizations. The target of this paper is to scrutinize if there is a liaison linking the transactional leadership style, employees’ satisfaction and the employees’ job performance. There appears to be an ever increasing number of studies supporting that satisfied employees play vital role in the employees’ performance and the company’s performance. Job satisfaction is one of the major individual mechanisms that directly affect the job performance. A good number of researchers have state that if the employee is more satisfied with his or her work and experience positive emotions through the work, there is big chance that they may do better job and choose to remain committed. Meanwhile, many researchers in the field of organizational psychology focused on the relationship joining job performance and satisfaction (Yahaya et al., 2012). It was find out that the employees’ performance depends on employees’ satisfaction; this shows that the higher the level of job satisfaction, the better is the performance of the worker (Insan et al., 2013). The author Jason A et al., (2015) said that unfortunately, workplace surveys suggest that satisfied employees are getting rarer. Our main aim was to study the effect of transactional leadership on employees’ performance and the mediating role of employees' satisfaction between transactional leadership style and employees’ performance. Quantitative research method has been utilized in this research. The questionnaire, 5 point Likert scale has been used to collect the data. Structural Equation Modelling (PLS-SEM) is used as a technique of analysis in this research. A total of 450 questionnaires were delivered to the respondents from telecommunication sector in Malaysia, out of which 330 questionnaires were usable. The research reveals that employee's satisfaction mediated the transactional leadership style and the job performance. This work shows as well that there is strong relation between job satisfaction and job performance.