Mediating role of Employee Satisfaction between Trasformational, Transactional Leadership Styles and Employee Perforamce: A Litearture Review

Abstract

Drawing on the social exchange theory, this study explores the potential association between transformational and transactional leadership on employee performance via employee satisfaction. Employee performance and leadership have been dominant areas in the literature of management over the decades as both fields are crucial for organizational success. In order to achieve the research objective, the current research employed a qualitative exploratory research design and literature review approach was employed to identify the associations among the study variables. After evaluating the prior literature which extensively discussed and examined transformational and transactional leadership styles in relation to employee behavioral outcomes like satisfaction and performance. This study finds that results inconclusive on the leadership styles like transformational and transactional leadership styles and employee behavioral outcomes. Therefore, the current study recommending further empirical examination of the proposed model in future studies to validate if aforementioned leadership styles are significant predictors of employee behavioral outcomes.