MBA Thesis Daniella Griffith - Kranenberg.pdf - FHR Lim A Po ...

of each employee to develop their own potential (Avolio, 1999; Bass & Avolio, 1994;Yammarino, Spangler & Bass, 1993).Transformational leaders provide mission and vision;enhance the sense of belonging and devotion so that employees want to stay a member of theorganization. This makes them eager to put in effort for achieving the goals of theorganization. This results in involvement of employees in their work and high organizationalcommitment. Transactional leaders however use rewards to influence employee behavior totheir benefit at low costs or they have a total disregard for what happens in the organizationand do not feel responsible for anything, which often result in dissatisfaction of theemployees. Hence the hypothesis:H 7: Transformational leadership has a positive direct impact on OrganizationalcommitmentTransformationalleadershipH 1H 7TransactionalleadershipH 2Job satisfactionH 6OrganizationalCommitmentBureaucraticH 3cultureH 4Innovative cultureH 5SupportiveCultureFigure 2-2 Conceptual Framework specifying the variables and the research Hypotheses20