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The relationship between leadership and follower in-role performance and satisfaction
with the leader: The mediating effects of empowerment and trust in the leader
Timothy Bartram, Gian Casimir,
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To cite this document:
Timothy Bartram, Gian Casimir, (2007) "The relationship between leadership and follower inrole
performance and satisfaction with the leader: The mediating effects of empowerment and trust
in the leader", Leadership & Organization Development Journal, Vol. 28 Issue: 1, pp.4-19, doi:
10.1108/01437730710718218
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LODJ
28,1 The relationship between
leadership and follower in-role
performance and satisfaction
4
with the leader
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Abstract
Purpose The purpose of this paper is to provide an examination of the mediating effects of
empowerment and trust in the leader on the relationship between transformational leadership and two
outcomes (i.e. the in-role performance of followers as rated by the leader and satisfaction with the
leader).
Design/methodology/approach In total, 150 customer service operators in an Australian
call-centre were invited to participate in a leadership questionnaire and informed that their
performance would be rated by their immediate supervisors (i.e. their line manager) as part of the
study. A sample of 109 responses were used in the analysis.
Findings Partial least squares analysis revealed that the effects of transformational leadership on
the in-role performance of followers were mediated by empowerment and trust in the leader, whereas
the effects of transformational leadership on satisfaction were partially mediated by trust in the leader.
Research limitations/implications The implications of the findings for leadership theorists is
that a more fine-grained approach is required to understand the leadership black box in that
different mediators have been shown to affect different outcomes.
Practical implications In a call-center context, which has high levels of control, standardization
and formalization, transformational leadership can improve the performance of followers by
empowering them and by developing trust in the leader.
Originality/value This paper contributes to the literature by providing a concurrent analysis of
the mediating effects of empowerment and trust in the leader on the relationship between
transformational leadership and in-role performance and job satisfaction.
Keywords Leadership, Empowerment, Trust, Transformational leadership
Paper type Research paper
Leadership & Organization
Development Journal There is growing interest in the role of leaders fostering employees to take initiative,
Vol. 28 No. 1, 2007
pp. 4-19 embrace risk, stimulate innovation and cope with uncertainty (Spreitzer, 1995).
q Emerald Group Publishing Limited
0143-7739
Additionally, recent work on shared or distributed leadership emphasizes the
DOI 10.1108/01437730710718218 importance of leaders empowering followers and accepting mutual influence to
facilitate performance (e.g. Gronn, 2000). The empowerment of employees is vital for Leadership and
organizational effectiveness. There is also a growing body of work that demonstrates follower
the importance of trust in the leader as a mediator of leadership effects on followers.
Research on transactional leadership and transformational leadership, however, has
not examined the role of empowerment and trust in the leader on positive outcomes
(e.g. in-role performance of followers and satisfaction with the leader) associated with
leadership. This paper contributes to the literature by providing a concurrent analysis 5
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of the mediating effects of empowerment and trust in the leader on the relationship
between transformational leadership and two outcomes (i.e. in-role performance of
followers as rated by the leader and satisfaction with the leader).
Method
Participants
Given the changes occurring in the call-center industry, it was decided that this study
will focus on leadership in a call-center. In recent years there has been a growth in the
use of call-centers (Curtis, 1999; Gilmore, 2000). More than two-thirds of all customer
interactions in Australia are channeled through a call-center (McLuhan, 2001).
Historically, the management of employees in call-centers has largely been informed by
Taylorism and personnel management (Marshall and Richardson, 1999). Recent Leadership and
studies have indicated, however, that a quiet revolution may be occurring in the follower
call-center industry as management introduces empowerment techniques (Gofton,
1999).
The sample comprised full-time line-managers and customer service operators from
a call-center for a large insurance company. The line-managers were regarded as
formal leaders given that they have formal authority over their direct reports. The 9
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average age of the operators was 30.2 years (s:d: 6:6), and they, on average, had
worked in the call-center for 3.5 years (s:d: 3:6). Sixty per cent of the operators were
female. The operators had, on average, worked with their immediate supervisors for
1.1 years (s:d: 1:4).
Measures
The Multifactor Leadership Questionnaire (MLQ, Short Form 5X) was used to measure
transformational leadership. Idealized influence attributed, idealized influence
behaviors, individualized consideration, inspiration, and intellectual stimulation
were combined to form a single measure of transformational leadership.
Spreitzers (1995) measure of empowerment was used and comprises four
components: Autonomy, competence, impact, and meaning. A four-item scale was used
to measure trust. The four trust items were:
(1) I can trust my manager to make sensible decisions for the future of the
company;
(2) I feel quite confident that my manager will always try to treat me fairly;
(3) my manager would be quite prepared to deceive me for his/her own benefit
(reversed); and
(4) my manager can be relied on to uphold my best interests.
The first three items were obtained from Cook and Walls (1980) Interpersonal Trust at
Work scale.
The in-role performance of followers was measured with the scale from Casimir et al.
(2006), which comprises four items:
LODJ (1) completes his/her work by the time you have specified;
28,1 (2) works hard;
(3) produces work of a high standard; and
(4) makes good use of his/her working time.
Note that the leaders rated the in-role performance of the followers. The three-item
10
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Satisfaction scale from the MLQ was used to measure satisfaction with the leader. A
five-point Likert scale (i.e. 0 strongly disagree, 4 strongly agree) was used with all
of the measures.
Procedure
Senior management was asked to provide a list of the names of all customer service
operators and their immediate supervisors. Customer service operators were invited to
participate in the study and informed that their performance would be rated by their
immediate supervisors (i.e. their line manager) as part of the study. Line-managers
were asked to rate the performance of the operators that they supervised. The line
managers were well placed to know about the performance of individual operators due
to the use of sophisticated methods of tracking critical components of employees
performance (e.g. number of calls per hour). The use of performance data from
immediate supervisors overcame some of the limitations associated commonly with
common method variance.
Operators were identified via a code (i.e. 1 to 150) so that their responses could
remain anonymous. Furthermore, the identification code enabled each operators
responses to be matched to those of his/her immediate supervisor. Customer service
operators and their supervisors completed the questionnaires separately. Of the 150
matched questionnaires that were distributed, 109 usable matched questionnaires were
returned (73 per cent response rate).
Results
All of the data, except for the in-role performance data, were obtained from the same
source (i.e. followers) using the same method. The issue arises therefore as to whether
the covariance between the constructs is an artifact of single-source common method
bias. To address this issue, a single-factor test was conducted on all of the items used to
test the hypotheses that were obtained from followers (i.e. transformational leadership,
empowerment, trust, and satisfaction). The results from this analysis revealed that the
first factor accounted for 22.1 per cent of the total variance in the items, which indicates
that common source/method variance does not explain the majority of the covariance
between the scales. Finally, ratings of transformational leadership, empowerment,
trust in the leader, performance, and satisfaction with the leader were not correlated
significantly with the length of the leader-follower relationship.
In order to demonstrate adequate model fit, the values for CFI, GFI and AGFI should
all be greater than 0.9 while the value of the RMSR should be less than 0.1 (Hair et al.,
1998).
The inter-item correlations for some of the MLQ sub-scales for transformational
leadership were unsatisfactory as evidenced by weak loadings on their principal
components: An item was regarded as having a weak loading and removed from a
sub-scale if it correlated less than 0.50 with the principal component. This resulted in
one item being removed from each of the scales for idealized attributed behaviors, and
intellectual stimulation. The fit indices provided in Table I are, where applicable, for
the scale after the removal of the weak-loading item, and show that all of the scales had
a satisfactory fit.
The five transformational leadership sub-scales correlated significantly with each
other; p , 0.001 for all correlations. A total transformational leadership score was
obtained for participants by averaging their responses to 18 items (i.e. four idealized
influence attributed items, three idealized influence behavior items, four inspirational
Transformational leadership
Idealized attitudes 0.89 0.5 2 1.00 1.00 0.99 0.011
Idealized behaviors 0.86 3.3 1 0.95 0.98 0.88 0.057
Individualized consideration 0.86 5.0 2 0.98 0.98 0.89 0.029
Inspirational motivation 0.73 2.7 2 0.98 0.99 0.94 0.036
Intellectual stimulation 0.88 2.0 1 0.97 0.99 0.93 0.047
Empowerment
Autonomy 0.77 2.4 1 0.99 0.99 0.92 0.016
Competence 0.58 0.0 1 1.00 1.00 1.00 0.000
Impact 0.72 0.5 1 1.00 0.99 0.98 0.016
Meaning 0.72 5.9 1 0.98 0.97 0.80 0.015
Table I.
Trust 16.3 2 0.91 0.93 0.65 0.035 Confirmatory factor
Satisfaction 0.3 1 1.00 1.00 0.99 0.011 analysis results and PLS
results for the outer
Performance 2.7 2 1.00 0.99 0.94 0.019 model
LODJ motivation items, three intellectual stimulation items, and four individualized
28,1 consideration items). As shown in Table II, the final transformational leadership scale
had satisfactory internal reliability as evidenced by the alpha, which is larger than
Nunnallys (1978) 0.70 criterion.
Table II contains the correlations between the measured variables and shows that
transformational leadership had significant positive correlations with empowerment,
12 trust, performance, and satisfaction. Empowerment had significant positive
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The bootstrapping procedure in PLS Graph was used to test the significance of the 13
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Figure 1.
Results from the PLS
analysis
LODJ .
the effects of transformational leadership on satisfaction with the leader were
28,1 mediated partially by trust in the leader as evidenced by the significant direct
effect of transformational leadership on satisfaction with the leader (H1b was
therefore partially supported);
.
the effects of transformational leadership on performance were mediated by
empowerment (H2a was therefore supported); and
14
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.
the effects of transformational leadership on satisfaction with the leader were not
mediated by empowerment (H2b was therefore not supported).
Discussion
The mediating effects of psychological empowerment and trust in the leader on the
relationship between transformational leadership and two outcomes (i.e. in-role
performance of followers as rated by the leader and satisfaction with the leader) were
examined. The only significant direct effect was that of transformational leadership on
satisfaction with the leader. The results also revealed that trust in the leader partially
mediated the relationship between transformational leadership and satisfaction with the
leader. These findings are consistent with those of Jung and Avolio (2000) and show that
transformational leadership has unique effects on followers satisfaction with the leader.
It might be the case that these unique effects stem from the capacity of transformational
leadership, presumably due to its charismatic components (i.e. idealized attributes and
behaviors), to evoke admiration of and identification with the leader.
The results revealed that psychological empowerment mediates the relationship
between transformational leadership and the leaders ratings of the in-role performance
of their followers. This finding is consistent with Shamir et al.s (1993) theory which
states that the transformational effects of charismatic leadership are due, in part, to
changes in the self-concept of followers. More specifically, Shamir et al. (1993) regarded
transformational leadership as directly affecting followers sense of competence, their
values, their ability to control their environment, and their perception of task
meaningfulness, all of which are components of the empowerment measure used in this
study.
It is noteworthy that the in-role performance of followers was more closely related to
empowerment than to trust in the leader. It stands to reason that empowering followers
helps them to perform their jobs more so than does trust in the leader because
empowerment involves behaviors that directly influence how followers perceive and
perform their work. In sum, these findings have demonstrated that mediators can have
specific effects on different outcome variables.
The results have several important implications for leadership theorists and
leadership practitioners. First, it appears that in order to improve in-role performance
and satisfaction with the leader, followers need to be empowered and to trust their
leaders. The findings indicate that empowerment leads to improved performance, but
not job satisfaction. In contrast, trust leads to greater job satisfaction, but not
performance.
The implications of the findings for leadership theorists are that a fine-grained
approach is required to understand the leadership black box in that different
mediators were found to affect different outcomes. Specifically, a fine-grained approach
would recognize the likelihood of some mediators (e.g. self-efficacy) having effects on
specific outcome variables (e.g. extra effort) that are distinct from the effects of other
mediators (e.g. trust and empowerment) on these variables. Additionally, more light can Leadership and
be shed into the black box of leadership by utilizing qualitative methodologies that follower
examine processual issues associated with transformational leadership.
Interview-based data, for example, may reveal details on how leaders actually
empower followers and on how the development of trust is associated with
empowerment. Furthermore, issues such as the role of contextual factors (e.g. task
structure and follower expertise) in the relationship between transformational 15
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leadership and both trust in the leader and empowerment could also be explored via
qualitative approaches.
The implications of the findings for leadership practitioners are quite clear. First, in
a call-center context, which has high levels of control, standardization and
formalization, transformational leadership can improve the performance of followers
by empowering them and by developing trust in the leader. These findings have
significant consequences for managerial practice and for human resource development.
As Gofton (1999) suggested, the call-center industry should continue to introduce and
experiment with workplace innovations that foster psychological empowerment rather
than rely on transactional behaviors that emphasize economic exchanges and solving
work-related problems.
It can be inferred from the findings that trust in the leader is an important outcome
of transformational leadership as trust mediated the relationship between such
leadership and both satisfaction with the leader and performance. Given that trust in
the leader enhances satisfaction with the leader, trust in the leader may also influence
other important outcomes such as organizational commitment.
As has been shown in this study, leaders can facilitate the development of
perceptions of trustworthiness through competence, the fair treatment of their
followers, and being genuinely concerned about the best interests of their followers.
Although trustworthiness appears relatively easy to achieve, leadership selection
should include the personality and the motives of leadership candidates because some
candidates who are highly competent may be unable, for various reasons (e.g.
Machiavellian tendencies), to develop trusting leader-follower relationships.
Additionally, call-center management can better ensure the long-term productivity
and skill development of employees by providing them with flexible working hours
and opportunities for developing problem solving skills, as well as by increasing the
accountability, responsibility, and independent decision-making authority of
employees.
Limitations
Some limitations need to be mentioned. First, data were collected from a single
organization in the call-centre industry and therefore the generalizability of the
findings is questionable. Second, although the in-role performance of followers was
rated by their leaders to circumvent the effects of common method bias, it would have
been better if the in-role performance of followers was measured using objective data
such as average call time. These data are collected routinely by call-centers but the
researchers were not allowed access to such data. Finally, the data for transformational
leadership, empowerment, trust, and satisfaction were obtained via a common method
from a single source (i.e. followers) and this method may bias the relationships between
these variables.
LODJ Future research
28,1 Future research needs to incorporate other variables that affect important outcome
variables. The current study could be extended, for example, by including the
personality of the followers because it is well established that aspects of personality
(e.g. neuroticism) influence ones propensity to trust. Moreover, other aspects of
personality, such as growth need strength (Hackman and Oldham, 1980) influence
16 reactions to empowerment. Finally, as mentioned earlier, qualitative methodologies
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Corresponding author
Timothy Bartram can be contacted at: t.bartram@latrobe.edu.au
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