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Leadership & Organization Development Journal

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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Received October 2005


Revised February 2006
The mediating effects of empowerment and
Accepted April 2006 trust in the leader
Timothy Bartram
School of Business, La Trobe University, Australia, and
Gian Casimir
Newcastle Graduate School of Business, University of Newcastle,
Newcastle, Australia

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).

Transformational leadership and trust in the leader


Leaders need to be trusted by their followers because trust is the mortar that binds the
follower to the leader (Nanus, 1989). Trust in the leader correlates positively with
various outcomes such as organizational citizenship behaviors, performance, and
satisfaction (e.g. Jung and Avolio, 2000; Pillai et al., 1999). It is suggested that trust is a
vital antecedent of satisfaction with the leader because both stem from affective states
(e.g. admiration of the leader) and cognitive states (e.g. the leader is held in high esteem
because of capabilities or attributes) rather than from observed behaviors of the leader
(Conger et al., 2000).
Trust can be defined as a willingness to depend on another party (Mayer et al., 1995)
as well as an expectation that the other party will reciprocate if one cooperates.
Perceived ability (Cook and Wall, 1980) or competence is essential to trust in
organizational leader-follower relationships because followers are unlikely to develop
trust in their leader unless they believe the leader is capable of fulfilling the leadership
role (Whitener et al., 1998). Trust also stems from an individuals confidence in another
partys intentions and motives towards oneself and others (Butler and Cantrell, 1984).
Credibility and integrity are also cornerstones of trust (Kouzes and Posner, 1993).
Transformational leadership has been defined in terms of articulating a compelling
vision for followers, behaving self-sacrificially, intellectually stimulating followers,
and providing them with individualized consideration (Bass, 1985; Klein and House,
1995). There is considerable empirical support for transformational leadership in terms
of its positive effects on followers with respect to a variety of criteria including justice,
value congruence, satisfaction, effectiveness, extra-role behaviors and organizational
learning (e.g. Lowe et al., 1996; Garca-Morales et al., 2006).
Transformational leadership has been shown consistently to be associated with
trust in the leader (e.g. Bass, 1990; Lowe et al., 1996). Transformational leadership
facilitates the development of trust in the leader for several reasons: The leaders own
determination and commitment to the vision, as evidenced by self-sacrificial behaviors,
indicate that the leader is walking the talk and thereby builds credibility (Conger and
Kanungo, 1988; Kouzes and Posner, 1993); the leaders high level of self-confidence
leads to perceptions of competence, which helps to engender trust because the leader is
seen as capable of fulfilling the leadership role (Whitener et al., 1998) in terms of
making sound decisions (Kirkpatrick and Locke, 1991) and having the ability to
achieve the vision; espousing and embodying shared values causes followers to
identify with and admire the leader (Bennis and Nanus, 1997; Jung and Avolio, 2000);
positive emotions experienced by followers due to increased levels of self-efficacy
LODJ (Shamir et al., 1993) and feeling that they are pursuing meaningful goals (Bennis and
28,1 Nanus, 1997); individualized consideration (i.e. being concerned about the welfare of
followers and attending to their individual needs) results in followers believing the
leader cares about them as people rather than as means to an end; confidence in the
intentions and motives of the leader result in perceptions of procedural justice and, in
turn, trust (Pillai et al., 1999); and acting as a mentor and paying close attention to
6 followers needs for achievement and growth (Kark and Shamir, 2002) indicate a
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concern for the welfare of followers, which is pivotal for trust.

Trust as a mediator of leadership effects


Transformational leadership involves intellectually stimulating followers thereby
encouraging them to learn new ways to do their work (Bass, 1985) and ultimately
improving their performance. However, the creation and facilitation of an environment
based on trust between the transformational leader and followers is necessary for
leadership-driven learning to occur (Taylor, 2000).
High levels of satisfaction and performance arguably require trust in the leader.
Merely enacting leadership behaviors does not guarantee that followers will be
satisfied or that they will be motivated to perform. Followers need to trust the leader in
order to feel positively about the leader and to exert extra effort to perform effectively.
If followers believe the leader is not genuinely concerned about their welfare, lacks
integrity, or is incompetent, they will be unlikely to trust the leader and consequently
they will be dissatisfied with the leader and not motivated to cooperate fully with the
leader thereby adversely affecting their performance.
Transformational leadership facilitates the development of trust in the leader
because such leadership involves showing concern for the individual needs of followers
as well as behaving in ways that are consistent with espoused values (Bass, 1985).
Transformational leadership requires trust in the leader because of the uncertainty
inherent in changing the status quo. Trust in the leader is therefore important because
it is an antecedent of risk-taking behavior (Mayer et al., 1995). Furthermore, followers
need to trust the leader if they are to cooperate and commit fully to the leaders vision
(Bass, 1985) as well as if they are to respond positively to intellectual stimulation. Trust
in the leader has been shown to be an important mediating (or intervening) variable
with respect to the relationship between transformational leadership and various
outcomes such as organizational citizenship behavior (OCB) (Pillai et al., 1999;
Podsakoff et al., 1990), performance and satisfaction with the leader (Jung and Avolio,
2000).
Based on the above discussion, the following hypothesis is proposed:
H1a. The effects of transformational leadership on performance will be mediated
by trust in the leader.
H1b. The effects of transformational leadership on satisfaction with the leader
will be mediated by trust in the leader.

Transformational leadership and empowerment


Followers need to be empowered by their leaders in order to perform optimally. There
is growing interest in the role of leaders in fostering employees to take initiative,
embrace risk, stimulate innovation, and cope with uncertainty (Laschinger et al., 2001;
Spreitzer, 1995). The concept of empowerment is embraced under the guise of the Leadership and
movement away from control towards a proactive and strategic commitment style follower
of management (Walton, 1985); these views are consistent with the tenets of shared or
distributed leadership. Nevertheless, there are those (e.g. Argyris, 1998) who argue that
empowerment is a bogus concept in that many employees do not seek empowerment
due to the responsibility that goes with it and that many managers continue to rely on
methods (e.g. command and control) with which they are familiar. 7
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Contemporary research on psychological empowerment has focused on articulating


the empowerment process and the psychological underpinnings of the construct in
terms of self-efficacy and autonomy (Conger and Kanungo, 1988; Spreitzer, 1995;
Thomas and Velthouse, 1990). Empowerment refers to a process whereby an
individuals self-efficacy is enhanced (Conger and Kanungo, 1988). Empowerment as
an enabling process affects both the initiation and the persistence of followers
task-oriented behaviors (Bandura, 1977). In accordance with expectancy theory,
motivation to increase ones effort in a given task depends on an expectation that effort
will result in the desired level of performance (i.e. expectancy).
Thomas and Velthouse (1990) argued that empowerment is multi-faceted and
defined it as increased intrinsic task motivation that manifests itself in a set of four
cognitions: Competence, impact, meaning, and self-determination. Competence refers to
self-efficacy or personal mastery in relation to ones work. Impact refers to the belief
that one can influence organizational outcomes. Meaning refers to the importance
placed on a given job based on ones values. Self-determination refers to autonomy in
making decisions about ones work (Avolio et al., 2004).
Transformational leadership energizes followers by providing them with an
exciting vision for the future rather than by providing rewards and punishments.
Beyond providing a vision, transformational leaders engage in inspirational behaviors
by acting as mentors and in this way they build followers self-confidence with respect
to goal attainment (Bass and Avolio, 1993; Shamir et al., 1993). Transformational
leadership alters followers aspirations, identities, needs, preferences, and values such
that they are able to reach their full potential. More specifically, transformational
leaders build team spirit through their enthusiasm, high moral standards, integrity,
and optimism and provide meaning and challenge to their followers work, enhancing
followers level of self-efficacy, confidence, meaning, and self-determination (Avolio
et al., 2004, p. 953). Transformational leadership also involves using intellectual
stimulation to challenge followers values, beliefs, and mindset by having followers
re-examine the way they do things and encouraging them to try novel and creative
approaches to their work (Bass and Avolio, 1994). Finally, transformational leadership
involves providing followers with individualised consideration by attending to their
higher order needs and encouraging them to take on more responsibilities in order to
develop their full potential (Kark and Shamir, 2002).

Empowerment as a mediator of leadership effects


Few studies have examined the mediating effects of empowerment on the relationship
between transformational leadership and various outcomes such as performance and
job satisfaction. There is substantial empirical support for the relationship between
empowerment and positive outcomes such as follower performance (see Spreitzer,
1995; Spreitzer et al., 1997; Kirkman and Rosen, 1999), follower satisfaction (e.g.
LODJ Laschinger et al., 2001; Seibert et al., 2004), and team effectiveness (Ozaralli, 2003). In
28,1 relation to meaning and impact, an important precondition of work satisfaction is the
degree to which work is personally meaningful (Herzberg, 1966; Hackman and
Oldham, 1980) and the perception that ones work affects the organization. In terms of
competence, self-efficacy has a powerful direct effect on individual performance
(Locke, 1991); low self-efficacy leads to avoidance of all but routine tasks, resulting in
8 low levels of performance (Bandura, 1977). In relation to self-determination, Spectors
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(1986) meta-analysis of 88 studies found strong evidence of positive associations


between self-determination and both job performance and work satisfaction.
Transformational leaders inspire their followers to higher levels of achievement by
showing them that their work is worthwhile (Bennis and Nanus, 1997).
Transformational leaders appeal to some fundamental human needs: The need to be
important, to make a difference, to feel useful and to be part of a successful and
worthwhile enterprise. Transformational leaders can also empower followers by
providing both positive emotional support during times of stress and opportunities to
experience task mastery. Moreover, followers can be empowered by words of
encouragement and positive persuasion from the leader, and by a leader who acts as a
role model (Bass, 1985).
A consequence of transformational leadership is the empowerment of followers
such that followers are converted into effective leaders (Burns, 1978) and are
encouraged to question the leaders values and beliefs (Bass et al., 1987). This effect is
consistent with the notion of shared or distributed leadership that recognises the
mutual influence betweens leaders and followers as well as the benefits, such as shared
commitment (Judge and Ryman, 2001) and problem solving, of dispersing leadership
throughout the organization.
Empowering followers to attain organizational goals and performance targets is the
very essence of transformational leadership (Avolio et al., 2004; Bennis and Nanus,
1997). Indeed, transformational leadership acts as a catalyst for learning
(Garca-Morales et al., 2006), and thus should enhance follower performance.
Furthermore, empowering followers by providing them with autonomy to manage
their work and by increasing their perceived meaningfulness of their work would
arguably facilitate their work-related learning and thereby improve both their
satisfaction with the leader and performance.
Based on the above discussion, the following hypothesis is proposed:
H2a. The effects of transformational leadership on performance will be mediated
by empowerment.
H2b. The effects of transformational leadership on satisfaction with the leader
will be mediated by empowerment.

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).

The call center


The organization in this study was a large Australian insurance company with its
headquarters in Sydney, New South Wales and local branches in every Australian
capital city. The organization provided home and car insurance for hundreds of
thousands of clients in Australia. Call centers were an integral part of the organization
and operated 24 hours-a-day to provide immediate customer service. This study
focused on one call centre located in Melbourne, Victoria. Of the 150 employees that
worked in the Melbourne call center, 14 were supervisors and each managed between
ten and 12 employees. The supervisors directly reported to a senior branch manager.
The culture of the call center could be described as relaxed and collegial. Management
bestowed call center operators significant operational decision-making authority (e.g.
problem solving with clients) as well as the opportunity to interact with other
employees on a professional and social basis. This setting was in stark contrast to
traditional call centers that closely monitor and impose stringent rules on employees.

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.

Principal components analyses


Principal components analyses and internal reliability analyses were conducted in
SPSS whilst confirmatory factor analyses were conducted in AMOS. Principal
component analyses were conducted to examine the factor structures of the MLQs
sub-scales and the scales used for the mediating and dependent variables.
Confirmatory factor analyses were then conducted using structural equation
modeling to examine further the proposed single-factor structure of the scales: Leadership and
Second-order confirmatory factor analyses were not conducted due to the sample size. follower
Four fit indices were used to assess each scales factor structure:
(1) the Comparative Fit Index (CFI), which is affected less by sample size than other
indices such as the normed fit index;
(2) the Goodness of Fit Index (GFI), which indicates the proportion of the observed
11
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covariances that is explained by the model-implied covariances;


(3) the Adjusted Goodness of Fit Index (AGFI), which is an adjusted form of the
GFI that takes into account model complexity; and
(4) the Root Mean Square Residual (RMSR), which indicates the amount by which
the sample variances and covariances differ from estimates obtained using the
hypothesized model.

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

PLS loadings x2 df CFI GFI AGFI RMSR

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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correlations with both performance and satisfaction. More specifically,


empowerment was more strongly correlated with the in-role performance of
followers than with satisfaction with the leader. Finally, trust had significant
positive correlations with both performance and satisfaction. More specifically, trust in
the leader had a stronger correlation with satisfaction with the leader than with the
in-role performance of followers.
Confirmatory factor analyses were conducted on each of the empowerment
sub-scales (i.e. autonomy, competency, impact, and meaning). Principal components
analyses showed that the three items in each of the empowerment sub-scales loaded
strongly onto their respective principal components. The fit indices provided in Table I
show that all of the sub-scales have satisfactory fit. The four empowerment sub-scales
correlated significantly with each other; p , 0.05 for all correlations. A total
empowerment score was obtained for participants by averaging their responses to the
12 empowerment items. As shown in Table II, the empowerment scale had an internal
reliability coefficient of 0.64, which is deemed acceptable (Hair et al., 1998).
Separate confirmatory factor analyses were conducted on the trust scale, the
performance scale, and the satisfaction with the leader scale to examine their proposed
uni-dimensionality. For each scale, all of the items loaded strongly onto one component
and the fit indices shown in Table I are satisfactory for a single-factor representation of
each of the scales. Scores for trust, performance, and satisfaction with the leader were
obtained by averaging the responses to the items in each of the scales. As shown in
Table II, all three of these scales had satisfactory internal reliability.

Partial least squares analysis


A partial least squares (PLS) analysis was conducted to examine the mediation effects
of empowerment and satisfaction on the relationships between the two types of
leadership and the two dependent variables. PLS was selected to analyze the overall
model because:

Mean (s.d.) Alpha 1 2 3 4 5 6

1. Age 30.19 (6.6)


2. TF 3.40 (0.62) 0.91 0.04 (0.71)
Table II. 3. Empowerment 3.81 (0.44) 0.64 0.25 0.30 (0.49)
Means (standard 4. Trust 4.00 (0.57) 0.78 0.10 0.74 0.31 (0.61)
deviations), correlations, 5. Perform 3.89 (0.72) 0.85 0.22 0.34 0.35 0.36 (0.70)
Cronbachs alphas, and 6. Satisfaction 3.41 (0.78) 0.76 20.03 0.70 0.18 0.61 0.25 (0.67)
average variance
extracted for the Notes: Average variance extracted for each scale is presented in parentheses on the diagonal;
measured variables significance: r . 0.17, p , 0.05; r . 0.24, p , 0.01
.
it does not require assumptions of multivariate normality; Leadership and
.
it is suitable for small samples; follower
.
it is well suited for testing complex models; and
.
it is appropriate when multicollinearity is present (Chin, 1998).

The bootstrapping procedure in PLS Graph was used to test the significance of the 13
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regression coefficients. Bootstrapping is a method for testing the reliability of the


dataset and is based on a random re-sampling of the original dataset to create new
samples of the same size as the original dataset for the purpose of estimating the error
of the estimated path coefficients (Chin, 1998).
The average variance extracted (AVE) by the construct representing its items was
calculated to test the convergent validity and the discriminant validity of the measured
constructs. The AVE represents the average squared loading (i.e. average
communality) of the items representing a construct as obtained from the PLS
analysis. In order for a measure to have acceptable convergent and discriminant
validity, it should have an AVE greater than 0.5 and share more variance with its items
than with other constructs in the model (Chin, 1998).
The AVEs for the measured constructs are presented in Table II and show that the
AVE was greater than 0.5 for all of the constructs, except for empowerment
(AVE 0.49). All of the constructs therefore had acceptable convergent and
discriminant validity as the AVE for each construct is greater than the variance
explained by any other construct, which is calculated by squaring the correlation
coefficient between the construct and another construct.
The results from the PLS analysis are presented in Figure 1 and show that:
.
the effects of transformational leadership on performance were mediated by trust
in the leader (H1a was therefore supported);

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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would be useful for examining processual issues associated with transformational


leadership and its effects on followers.

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Corresponding author
Timothy Bartram can be contacted at: t.bartram@latrobe.edu.au

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