Employees’ Perception on Leadership Style towards Business Performance in MNC Corporation in Malaysia

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Date
2015
Authors
Tang, Song Yee
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Publisher
Universiti Sains Malaysia
Abstract
In current business environment, the role of leaders in organisations has shifted and the success of any organization depends on the leadership styles practiced by the leaders. The objective of this study is to examine the relationship between leadership style and business performance of multinational companies operating in Malaysia mediated by job satisfaction. One of the biggest challenges facing leaders today is the need to develop new business models that stress on effective leadership style, employee job satisfaction and sustainability without sacrificing revenue growth, profitability, and other indicators of non-financial performance. A quantitatve study, using self-administered structured questionnaire adapted from previous studies, are issued using purposive sampling via direct distribution to 150 employees, working in MNC and via direct distribution to part time students that working in MNC at public university in Malaysia. Statistical Package for the Social Sciences (SPSS) and Partial Least Square (PLS) were used to analyse the data. Spiritual leadership style is strong factor incluence job satisfaction, followed by authentic leadership style, transformational leadership style, and transactional leadership style. In addition, job satisfaction do mediate the effect of transactional leadership style, transformational leadership style, authentic leadership style, and spiritual leadership style on business performance. The research findings can be used to formulates better strategy for the MNC leaders, supervisors, and human resource department to help in developing human capital and selecting best fit leadership style to apply for higher job satisfaction and leads to greater business performance ultimately.
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Keywords
Leadership styles
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