Effects of leadership style on job satisfaction in small and medium enterprises (SMEs) in Malaysia
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Date
2012
Authors
Yagambaram, Loganatan
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Abstract
The purpose of this study is to examine the relationship between leader’s leadership style and employee’s job satisfaction in Small & Medium Enterprises (SMEs) in Malaysia. Specifically, this research identified how the leadership style measured by MLQ relates to employees’ satisfaction with pay, promotion, supervision, fringe benefits, contingent rewards, operating conditions, coworkers, nature of work and communication as measured by Job Satisfaction Survey (JSS). Survey packages containing the MLQ, the JSS, and a demographic questionnaire were distributed to 210 employees who had worked in SME in Malaysia. Of these surveys, 175 survey forms (87.5 %) were returned and 169 were valid. Descriptive and inferential statistical techniques, including means, frequencies, percentages, Cronbach’s alpha coefficients, and Multiple Regression were used for analysis by using SPSS. The .05 level of statistical significance was set for all statistical computation. The results indicated that sub-variable of transformational leadership style, individualized consideration behavior proved to be the most frequent and significant predictor of facets of job satisfaction of SME employees in Malaysia. However, sub-variables of transformational leadership failed to predict two aspect of job satisfaction, which was contingent reward and fringe benefits. Contingent rewards aspect of job satisfaction were significantly and negatively predicted by passive/avoidant leadership. Meanwhile, fringe benefits aspect of job satisfaction were significantly predicted by transactional leadership positively and passive / avoidant leadership negatively.
Description
Master
Keywords
Business administration , Leadership style , Job satisfaction , Small and medium enterprises (SMEs)