| Abstract: | This study seeks to establish and test the relationships between both leaders’ and followers’ perceptions of leaders’ transformational leadership behavior and its relationship with job satisfaction and organizational performance. We aim to represent the managerial and psychosocial outcomes in the leader–follower dyad. The study also determines the relative contribution of the two constructs of the leader–follower dyad and their relationship with organizational performance. Since both leaders and followers estimated the leaders’ transformational leadership behavior, two models were tested: first, a leader-perception model examining the relationships among transformational leadership, job satisfaction, and organizational performance using data on transformational leadership from the leaders’ perspective; and second, a follower-perception model examining the relationships among the same three constructs using transformational leadership estimates from the followers. We then explore the corresponding parameters in the two models to determine if there are significant differences in the relationships among the constructs, thereby determining the impact of leader vs. follower perceptions. Structural equation modelling based on a sample of 372 leader–follower matched responses identified how transformational leadership has a significant, positive relationship with employee job satisfaction and organizational performance. Although the relationship between transformational leadership and organizational performance was similar in the two models, in the follower-perception model the effect was almost entirely mediated by employee job satisfaction, whereas there were both mediated and direct effect in the leader-perception model. |
