Influence of Transformational Leadership Components on Job Satisfaction and Organizational Commitment

Leadership, job satisfaction, organizational commitment and trust have become important processes for an organization in recent years. One of the contemporary human resource management functions in the organizations involves engaging in leadership development, improving organizational trust and organizational commitment and increasing job satisfaction. This research is conducted with an intention to investigate the impact of components pertains to transformational leadership (TL) by exercising dilemmas as employee (satisfaction & commitment), being engaged in Islamic banking sector; whereas TL components like; idealized influence (II), inspiration motivation (IM), intellectual stimulation (IS) and individualized consideration (IC) were taken into consideration. A two stage cluster sampling design is used for the selection of sample from 5 Islamic banks of Pakistan from Gujranwala division having 56 branches. 319 employees of 25 branches are used and information is collected through structured questionnaire having 26 items on likert scale of 5 point. The factor analysis, structural equation modeling, group mean comparison and discriminant analysis is used for the data analysis. Findings of study reveal that TL components have significant influence with respect to job satisfaction along with organizational commitment of employees. Contribution of this study is towards both administrative and managerial scenarios’, yet senior management need to focus on core components of TL while designing the policies for the strategic implementation. Furthermore, this investigation was conducted in only one country having unstable economic and political affairs that effect individuals’ moods, added inquiries needs to be conducted in better economic conditions for research exploration perspectives.